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

Unlock Success in Sales: Hire the Right Reps for Maximum ROI

14 Dec 2023 · 1 min

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Jason M. Lemkin advises founders/hiring managers to match sales reps' prior experience to the target average contract value (ACV) of their deals — e.g., if you want $20k/year deals, hire reps who have sold $20k deals. He emphasizes that matching ACV controls for product type, cadence, lead volume, and inbound/outbound mix. Screen out candidates from mismatched ACV contexts (even if from notable firms like Dropbox SMB) and prioritize reps who have hired and succeeded at your ACV; if they fit and you like them, hire them.

Chapters

Because maybe you're driving that market. But if you want your average ordinary deal to be, say, 20k a year on December 31st, hire someone that's done 20k deals, because that will control for almost everything else. That will control for type of product, cadence, number of leads you need, ratio of outbound to inbound. That's mostly from inbound with process. You love. You love this person, but they came out of Dropbox and they came out of the SMB group. And that. That's probably nothing like your product. So screen out for the wrong acv and screen out for having hired two reps. If, if they're at your ACV and they've hired trips and you love them, just hire them. Just hire them if you love them. Any questions on that? Clear.