Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

Unleashing the Power of Great VPs in SaaS and B2B for Explosive Growth

26 Aug 2023 · 1 min

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Jason M. Lemkin argues that in SaaS and B2B businesses, hiring great VPs across functions (sales, marketing, customer service, engineering, product) is almost always accretive—these executives more than pay for themselves and drive explosive growth. He warns that the real cost comes from hiring junior or mediocre leaders who cannot own their roles, turning hires into a cost center; given SaaS margins, recurring revenue, and upsell opportunities, companies should find ways to afford top talent.

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Literally once you've done it, once you've seen it, almost any 10x higher, almost any magical VC more than pays for themselves. And where they get expensive is actually where you go to junior and they can't own it. That actually costs you money. It doesn't save money. Or when you settle for mediocre or not great then they then they then hires really do become a cost center. But I have never in SaaS in B2B with the high margins we have, with the recurring revenue we have, with the upsell opportunities that we generally have. I have never seen a great VP of any role, sales, marketing, customer service, eng or product not be accretive. You can always afford it. Find a way for the great ones.