Hire Sales Reps Ahead of Plan at Scale

David Skok has another great post up titled A Common Way Sales Misses Plan. David has some of the best content out there for entrepreneurs, especially Software-as-a-Service entrepreneurs. The general idea is that when a startup has product/market fit and a repeatable sales process, the most common reason for missing a sales goal is not hiring and training sales reps fast enough. As much as entrepreneurs would like a simple self-service sales process, the reality is that almost all super successful tech companies employ hordes of great sales people.

Here are a few notes from the article:

  • Bookings = Number of productive sales reps times average productivity per rep
  • 2 variables to increase bookings:
    • Number of productive sales reps
    • Sales volume for an average rep per month or quarter
  • 4 sales rep considerations:
    • Need leads to feed sales reps
    • Reps need time for training
    • Many new hires will fail
    • Staffing is needed for bringing on new customers and supporting them
  • Ultimate recommendation: bring on more sales reps earlier than plan

Now, hiring a ton of sales people without product/market fit or a repeatable sales process isn’t the advice. Only when things are working well does it make sense to hire sales reps faster than planned. At scale, productive sales reps are the main revenue driver.

What else? What are some more thoughts on hiring sales reps ahead of plan when at scale?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.