vp sales business plan

What Makes a Great VP of Sales and How to Hire One: The Complete Guide

by Jason Lemkin | Blog Posts , Compensation , Hiring , Sales

In SaaS, #1 most common misfire, with a bullet, is the VP/head of sales.   In fact, there’s a VC saying that I used to really hate.  It goes something like “You’ve Got to Get Past the Carcass of Your First VP of Sales” or “It’s The Second VP of Sales When You Really Start Selling” or variants thereof.  It used to really bug me because I am a firm believer in the strategy of Zero Voluntary Attrition and trying to hire fewer, more committed resources over a higher volume of mercenaries that turn over more often .

"A VP of Sales can't be a magician. Their job is to take what's working with 2 reps, or at least 1 1/2 reps … and make it work for reps 3-300." pic.twitter.com/Dg0XyGxLlG — Jason ✨👾SaaStr.AI Sept 11✨ Lemkin (@jasonlk) February 2, 2023

The thing is, it turns out the VCs are basically right.  Because in SaaS start-ups, it seems like the majority of first VP Sales fail.  Don’t even make it 12 months.   And totally screw things up as they fail.   And this is really, really painful.  It’s much worse than a bad VP Marketing hire .  Because with a bad VP Sales you can lose so much momentum, and create so much internal confusion, that this one bad hire can really cripple you as you try to get from Initial Traction to Initial Scale.

So I want to try to help you if you’re going through this.  It’s going to take a few steps. First, in this post, I want to outline what a VP of Sales in a SaaS company actually does.  Because I think this is 50% of the problem – founder/CEOs are looking for the wrong things out of their VP Sales. Then later, in a different post, I want to describe who to hire, and how.  And I’ll even give you a script to help you make the right hire.

Before we get there, though, let’s outline in order of importance The Top 5 Things a Great VP of Sales Actually Does at a SaaS Company from say $500k in ARR to $20m+ ARR:

1. Recruiting

Like Nick Saban:  20%+ of their time .  Because you’re going to need a team to sell.  And recruiting great reps and making them successful is the #1 most important thing your VP Sales will do.  And the great VP of Sales all know this. They all either have in their back pocket, and/or are constantly on the prowl for, the next 2-3 great reps.  Because sales is a lead-driven but headcount- closed business.  To hit their number, they know they need the heads.  It becomes mathematically impossible without them.  

You'll know if your VP of Sales is going to work out even before they start How? You'll know based on who wants to already come with them pic.twitter.com/85ajodCHGK — Jason ✨👾SaaStr.AI Sept 11✨ Lemkin (@jasonlk) October 14, 2022

2. Backfilling and Helping Their Sales Team

Helping their sales team close deals.  Working and closing key deals with them. Spotting issues before they blow up.  Seeing opportunities ahead of the horizon. In general, making sure their 3 reports, then 10 reports, then 30 direct and indirect reports — work as effectively and efficiently as they can.

3. Sales Tactics

How to compete.  Pitch scripts. Coordinating FUD and anti-FUD.  Segmenting customers. Optimizing how best to work with Demand Gen and marketing.  Getting feature gaps filled with Product and Engineering. In sum -> Learning and understanding how to maximize the revenue per lead.

4. Sales Strategy

What markets should we expand into?  How do we shore up our base? Where should we spend our resources, our money?  Once you’re past $20m or so in ARR, Strategy passes Tactics and goes higher on the list — once the VP Sales has a strong group of lieutenants/managers (e.g., Directors of Sales) to repeatedly execute core Tactics.

5. Creating and Selling Deals Themselves

This is the last of the Top 5.  Important, yes.  But #5 on the list 5 most important things your VP Sales should be doing.  And this is perhaps the unobvious part.

It’s #5 I think that is the root of half of the problems hiring your VP Sales.  Up until you make this hire … you the founder have likely been the acting VP Sales yourself, hopefully with 1-2 reps to help you ( ideally two ).  And you want to accelerate, do better … so you want to hire a VP Sales to … sell better than you.

Makes sense.  Except it doesn’t — because believe it or not, even at just $1-$2m in ARR, you’re already getting too big for VP Sales to be spending most of his time selling himself.  Let’s say you hire your VP, Sales when you are at $1m in ARR.  And you want to get to $2m in ARR in the next X months. OK, adding in churn, you’re going to have to add another >$1m+ ARR … quickly.  To do that, you’re probably going to need at least 3 scaled-up reps working 100% to hit quotas of say $300k-$400k each (you can raise these later, but it’s hard early).  And to do that, if your ACV is, say, $5k … you’re gonna need to close 200 deals in the next 12 months. 200 deals.

And then … as soon as you hit that run rate (which actually should happen earlier than month 12, because you have to hit the velocity earlier than that to hit the full year-end goal) … you’re gonna need 6 more reps to hit the next goal.  All of a sudden, that’s 10 reps.  Before you know it. And 400-500 deals a year.

So a little ways back @HarryStebbings + I did a deep dive on Building a Successful Sales Team: 1⃣ The Great VPs Know How to Spend The Money 2⃣ Founder Usually Has Be First Head of Sales 3⃣ The 10x Sales Rep pic.twitter.com/kHftTU9s3R — Jason ✨👾SaaStr.AI Sept 11✨ Lemkin (@jasonlk) June 18, 2024

So yes, your VP Sales should be out there closing the big ones, the huge deals, on a plane, on a jet, of course.  Sometimes, soup to nuts, lead to close. And it’s great when they even take a quota at first, to do it themselves.  But there’s no frackin’ way he/she can do more than a handful of all your deals directly, him/herself.  The deal volume to hit your growth targets is just too high.

So my uber-point here is you shouldn’t hire a VP Sales until you are ready to scale and build and fund a small, growing sales team.   And any VP of Sales that doesn’t see this — probably isn’t a great VP of Sales for you.  Instead, he/she is either just a great individual contributor, a great figure-it-outer … or a deeply flawed candidate.  Either way, not a great VP Sales.

Your VP Sales cannot rescue you from “Great Product.  No Revenues”. Your VP Sales cannot rescue you from having no organic demand for your product.

>> But a Great VP Sales can take that tiny bit of Initial Traction, that small little trickle of inbound lead flow … those raw materials … and do something really magical with them.   Drive your revenue per lead way up, and put you in place to jump on and close every practical piece of business that comes through the door.  Create a real machine to monetize the prospects and leads that find their way to you. And then add some gravy in outbound and other expansion on top of that.

That’s the magic in a great SaaS VP Sales.

10 Great Questions to Ask a VP Sales During an Interview

Ready to hire your first VP Sales?  But haven’t done it before?

Let me give you a partial interview script that may help a bit.  You’ll have to vary it for different types of SaaS businesses — a bit.  But it will basically work for all SaaS companies from, say, $200k in ARR to $10m in ARR or so — a wide range.  (After that, you’ll probably be looking for a different type of VP Sales. We’ll get there in our next and final VP Sales post.)

Before we get there, as a reminder, I strongly recommend you hire 1-2 sales reps (ideally 2) before you hire a VP Sales, at a minimum.  And make them successful first. So you can practice what you preach, and know of what you are hiring. And also to get big enough so a VP Sales can actually help, not hinder you.  More here in our prior VP Sales post: When You Hire Your First Sales Rep — Just Make Sure You Hire Two  

Now if you are ready, but haven’t done it before in SaaS, here are 10 good screening questions to see if you have a real VP, Sales candidate in hand — or not.  These questions mostly don’t have right or wrong answers, but will help you determine the quality and fit of the candidates:

1.  How big a team do you think we need right now, given what you know?   

If he/she can’t answer — right or wrong — pass., 2 .  what deal sizes have you sold to, on average and range , if it’s not a similar fit to you, pass.  if he/she can’t answer fluidly, pass., 3.  tell me about the teams you’ve directly managed, and how you built them .  , if he/she can’t describe how they built a team — pass., 4.  what sales tools have you used and what works for you  what hasn’t worked well   , if they don’t understand sales tools, they aren’t a real vp sales., 5.  who do you know right now that would join you on our sales team   , all good candidates should have a few in mind.  tell me about them, by background if not name., 6.  how should sales and client success/management work together   , this will ferret out how well he/she understands the true customer lifecycle., 7.  tell me about the deals you’ve lost to competitors.   , what’s going to be key in our space about winning vs. competitors, 8.  how do you deal with fud in the marketplace   , this will ferret out if they know how to compete — or not., 9.  do you work with sales engineers and sales support  if so, what role do they need to play at this stage when capital is finite   , this will ferret out if he/she can play at an early-stage saas start-up successfully — and if he knows how to scale once you scale., 10.  what will my revenues look like 120 days after i hire you   , have him/her explain to you what will happen.  there’s no correct answer. but there are many wrong answers..

ok let’s make it an even 12 actually:

11.  How should sales and marketing work together at our phase?   

This will ferret out if he understands lead generation and how to work a lead funnel.  Believe it or not, most candidates don’t understand this unless they were really a VP Sales before.

12.  How much easier or harder will our product be to sell than the last one you sold?

Very few VPs of Sales can really sell a product that is more complicated, more technical, more nuanced, and more vertical-specific than the last one.  Be very wary here.  Use this question is try to figure out if selling your product will at least be a tiny bit easier to sell than their last one.

There will always be the exception But still I say, whatever you do, no matter what: Don't hire a VP of Sales that has only sold products that are easier to sell than yours, or less complicated, or less technical, or simpler I just so rarely see them make it — Jason ✨👾SaaStr.AI Sept 11✨ Lemkin (@jasonlk) May 23, 2023

These questions aren’t magic.  None of them are particularly insightful or profound in isolation.  In fact, hopefully they are kind of obvious. But what they will do, is they will create a dialogue .  From them, you’ll be able to determine: (x) if this candidate is for real, or not, (y) if this candidate can really be a true VP, a leader, a manager — or not — and take you to the next level — or not, and (z) if the candidate is a good fit for your company and space in particular.

If any of the answers are terrible, pass.  If any don’t make sense, pass. And if you know more about any of these questions that the candidate does — pass.  

Your VP Sales needs to be smarter than you in sales, sales processes, and building and scaling a sales team.

VP of Sales Compensation Plan

So now that you’ve hired your VP Sales, it’s important to know how to pay this critical role. I don’t think it’s necessarily as nuanced and interesting a topic as how to pay and scale the sales team itself, or how to hire for this role.

But incentives are critical, and the VP Sales will likely be the Seemingly Most Expensive hire you ever make.  That’s stressful. So let me tell you what I did and learned. The 50/50/25+ plan. And as you can see if you look at the Boston Strategy Group chart at the right , as usual, it’s just a little different from The Ordinary way to go.  Not a lot different, but meaningfully so.

The 50/50/25+ Plan

Here’s what I learned and knew before I figured out the 50/50/25+ plan:

No best efforts cr*p .  Even if you hire a VP Sales very early, there has to be a clear quota and plan for him or her to hit.  No best efforts stuff. I know it’s teamwork in a start-up. But sales is sales.

In a start-up, the VP Sales has to also be aligned to costs, not just revenue.   It’s natural for a VP Sales not to care about costs.  Just to want a budget and a top-line number to meet. But costs are critical when you’re adding sales reps and then a VP Sales ahead of profitability.  Sales just feels sooo expensive early on.

The VP Sales has to somehow be accretive.   This seems almost impossible unless you give her a big quota, which as we’ve discussed, doesn’t scale.  So how can this big salary not just be a big drain on limited capital? How can the VP Sales not be a “tax”, at least from a financial plan perspective?

The Good VP Sales have large OTE (On-Target Earnings) Expectations.   You can’t get a great VP Sales for a nominal $1X0k salary.  You can get a crummy one, however.

Many candidates will tell you they want a guaranteed draw for 6+ months. They’re leaving something good for something risky.  So guarantee me my full bonus for 6+ months until I’ve built up a big enough pipeline to close enough revenue to hit my number.  Sounds fair — on the surface.

It’s tough.  And I got most of this wrong before I got it right.

So here’s what I figured out, for us, and it worked well.  It’s just one way to go:

A High OTE is No Big Deal — if your VP Sales Hits Your Number .

So don’t sweat it.  Instead, align it. Do you really care if the OTE is $300k, or heck even $500k, if the VP Sales brings in $Xm more revenue than you expected?  Of course you don’t … and you don’t pay it if it doesn’t happen … plus bonuses “vest” over the course of the year …

So we paid 50/50/25+, which means:

50% of OTE paid as base salary .  No draw (i.e., no guaranteed bonus for X months until you scale).

50% of OTE paid as a bonus, with the target being the overall company revenue number for the year .  Top-line revenue, inclusive of churn, inclusive of upsells and self-service, net of everything.  The same number you and everyone else in the company is trying to hit. A number that’s hard to hit, but that you have say 50-60% confidence you can hit.

25% or more upside for exceeding that plan .  Basically, we paid our VP Sales X% of every single dollar after we hit the plan for the year out.  That % has to go down over time, but the basic idea was if the Stretch Plan was hit (Stretch for us = plan that I had a 25% confidence in hitting), then there would be a 25% boost on top of the OTE.  If the Stretch Plan was exceeded, the comp goes up from there. No cap.

It was that simple.   And what it meant was, like the sales rep comp plan, if the VP Sales killed it — the money would follow.  And if he didn’t, it didn’t, and the cost wasn’t that stressful. And since our Real VP Sales killed it, he made good money, was highly accretive, and we got to cash-flow positive at $4m in ARR even paying our VP Sales well and paying our sales reps 25% of the deal size.

A few thoughts on the plan:

Ideally, don’t do a guaranteed draw .  I know it seems to make sense.  But the thing is, if you pay your VP Sales in full on hitting the plan, it shouldn’t matter if that gratification is delayed a few months, so long as the real OTE is high.  A draw actually can be an excuse for laziness. It sucks some of the hunger out. And lets the candidate blame others for their own issues. {Yes, I know some will disagree and this is controversial.  Just my view.} If you do end doing a draw, keep it short (e.g., one quarter) and make sure the VP Sales have to “make it up” in sales quota payments by the year-end.

But do pay well when they kill it — against a sane plan.  And please don’t cap the upside .   That’s the trade-off.  No draw, no huge salary for just showing up.  But you have to pay very well when a realistic plan is hit (not a ridiculous one), and you have to pay very, very well when you exceed it.  This will appeal to a great VP Sales on the way up.  It won’t appeal to a mediocre one or one on the way down.

Pay bonuses out monthly, even if the goals are quarterly .  This is the flip side of the no guaranteed draw.  No delayed gratification here. It’s hard enough to come into something new as VP Sales and make magic happen.  Once it does — pay now. Not later. Don’t make your VP worry her quarterly bonus might not come, or be subject to vagaries.  

Pay it out monthly, even if it’s a bit of a guesstimate, and true it up later.  Many sales leaders have some scar tissue about not being paid a bonus or two. Just pay ’em.  Be better than that, and build trust and loyalty back.

In the beginning, consider bonuses and goals that match the overall company ARR goals — not just net new bookings.   My VP Sales and I both worked toward the same goal as everyone else in the company — the end-of-the-year revenue goal.  EchoSign has a self-service component, and the Client Success team managed churn, and upsells were split between Sales and Client Success.  You could make an argument the VP Sales should only be responsible for net new revenue from sales. And that may be the way to go later. But until you are at $Xm in sales, I say everyone should have the same revenue goal where practical.  One overall revenue goal for the founders and VPs and everyone. It also incents the VP Sales to work with the other functional areas around post-signature revenue (support, product, client success, etc.).

Good luck!  I think anything works well here, as long as you align interests, and the plan is achievable.

You can see from the above chart, and in the BSG Team Ventures data here , that most VP Sales are heavy on guaranteed comp and light on the upside.  You’ve been warned. 🙂

Related Posts

• A Few VP of Sales Personas to Stay Far Away From
• The Ultimate Guide to Hiring a Great VP of Sales
• Most Read in 2017: Hiring Sales, Sales Comp Plans, and more

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The First 90 Days: A Guide to Evaluating Your New VP of Sales

What to expect in the first few months and how to measure success (beyond pipeline)..

DEAR STAGE 2: We are actively hiring for a VP of Sales and as part of the process my board asked me to share how we would evaluate the performance of this leader. Certainly we care about hitting the revenue targets and board plan, but I’m wondering what else we should be looking at in the first few months. What is expected? What is fair? ~EVALUATING NEW EXECS

DEAR EVALUATING NEW EXECS: Hiring the right VP of Sales is make or break during the scaling phase, as this leader will drive the revenue engine and influence your company's growth trajectory. A board member asking these questions has probably lived through some turnover in GTM leadership and knows catching a mis-hire quickly can save months of time. When the board asks how you plan to evaluate this leader's performance, they're not just looking for assurance on meeting revenue targets but guidance on how you plan to get this hire up to speed quickly, integrate them into the company culture, and give them room to run. 

I collaborated with John Boucher , Stage 2 Capital Operating Partner, who has extensive experience hiring sales leadership and advising companies and boards on GTM. Here’s our guide to help you assess your VP of Sales holistically in the first few months:

In the initial 30 days your VP of Sales should…

Start looking for quick wins in process and operational efficiency. Early on, your VP of Sales should identify bottlenecks in current sales processes and propose improvements, and focus on unblocking and moving critical projects forward. A data-driven, detail oriented leader is going to want to free up the time of their team and will quickly figure out a few obvious ways to do that. Be wary of changes that disrupt workflows or fail to improve efficiency - a rinse and repeat “this is how we did it at my last company” is usually the cause.

Conduct a comprehensive Data Deep Dive on historical metrics. John Boucher, Partner at Stage 2 Capital, emphasizes the importance of this step: "The new hire should be diving into historical data on Bookings, Win/Loss, NDR Trends, Cross-Sell, and Upsell Data. This means reaching out to finance and revenue operations teams for detailed information. By doing so, they can share unique insights on the business early on." This data-driven approach allows the VP of Sales to make informed decisions and identify areas for improvement right from the start.

Demonstrate a deep understanding of the market, competitive landscape, and your unique value proposition. He or she should be asking insightful questions and bringing fresh perspectives (that align with your company's vision) to the table.

TIP: Make sure you, as the founder/CEO, are making yourself available to this new exec. It’s tempting to hire a leader and go hands off, but these early days set the tone for the relationship and you want to ensure that you are in lock step. 

By the 60-day mark, expect a detailed plan of attack...  

By this point your VP should have a pulse on the team's strengths and weaknesses and a clear view of top priorities. The quick wins move into a more organized strategic vision for the coming months. You’re looking for a balance of strategy and execution. A cohesive, data-driven plan signals early success, while a vague or overly ambitious strategy (often lacking in actionable detail) may be cause for concern - these hires can get stuck in analysis mode and never reach the pace of execution required for a startup. This plan might include a sales playbook, compensation plan adjustments, re-org proposal, hiring plans, and feedback on the plan for the year (how to achieve it or why it might need to change).

An important aspect to watch for, as John points out, is the VP's ownership of the forecast. "In the current quarter and the next, the forecast should be fully reviewed, with the new VP showing clear ownership vs. treating it as an inherited forecast with no accountability," Boucher advises. This level of engagement demonstrates the VP's commitment to driving results and their willingness to be held accountable for the team's performance.

Cultural fit and integration become clear within the first few months too. Positive signals include strong alignment with company values and effective cross-functional collaboration with departments like marketing, product, and customer success. If they foster inter-departmental collaboration and contribute to company-wide initiatives, it's a good sign they're integrating well. A great leader is also going to seek out feedback from you and peers during this period to make sure they understand the cultural norms.

To validate this integration, Boucher recommends a proactive approach: "Get direct feedback from cross-functional peers to validate that integration and communication is happening." This feedback loop ensures that the VP of Sales is not operating in a silo and is effectively collaborating across the organization. 

Within the first 90 days, your VP of Sales should…

Have invested in team development through 1:1 face time with each team member, understanding their strengths and development areas, and building strong trust-based relationships. Additionally, they should have established relationships with top clients, gathered meaningful feedback, and translated this feedback to appropriate parts of the organization.

Have a meaningful impact on revenue targets. It's important to consider the quality and sustainability of the pipeline and customers coming through the funnel. Closing deals that align with long-term business goals indicates success, while focusing solely on short-term gains can be detrimental. The VP of Sales' ability to accurately forecast sales is another important factor and they should have a strong handle on the pipeline and forecast within the first quarter.

Develop and communicate a formal cadence for the sales business. As John emphasizes, "Within the first 90 days, you would want to see that a VP of Sales has developed and communicated a cadence to his/her business. This means establishing regular forecast calls, pipeline/coverage calls, a leadership meeting schedule, and a cross-functional cadence." This structured approach shows the VP's ability to create a rhythm for the sales organization, ensuring consistent communication, accountability, and alignment across teams. 

Ultimately, evaluating a VP of Sales goes beyond hitting revenue targets. It’s about ensuring they are strategically aligned with your vision, effectively leading and developing the sales team, improving operational efficiency, engaging with customers, meeting sales performance metrics, and integrating well into your company culture.

The first few months are crucial for setting the tone and trajectory, so take the time to get this leader up to speed quickly. 

Until next week!

Discussion about this post

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How to Design a VP of Sales Compensation Structure

What is VP of sales compensation structure?

Sales team considerations in compensation planning, how to design a vp of sales compensation structure, vp of sales compensation structure template.

• Step 1. Define sales goals.
• Step 2. Benchmark compensation standards.
• Step 3. Determine base salary and variable pay.
• Step 4. Set clear performance metrics.
• Step 5. Incorporate long-term incentives.
• Step 6. Review and adjust regularly.

Designing a VP of Sales compensation structure is a strategic decision that requires careful planning and insight into the organization's goals and sales performance metrics. A well-designed compensation plan is crucial for attracting and retaining top talent while motivating the VP of Sales to drive results.

A VP of Sales compensation structure refers to the payment system specifically designed for the Vice President of Sales within an organization. This structure includes base salary , variable pay, bonuses, commissions, and other incentives tied to performance.

The goal is to create a balanced package that rewards the VP of Sales for achieving organizational objectives, such as meeting or exceeding revenue targets, expanding market share, and leading a high-performing sales team.

The compensation structure typically aligns with both the company's short-term and long-term strategic goals. It should incentivize the VP of Sales to focus on not just revenue, but also on the quality of deals, profitability, and customer satisfaction.

Key factors that affect VP of sales compensation

The compensation for a VP of Sales is influenced by multiple factors, including:

Company size and revenue: The size of the organization and its overall revenue heavily influence the compensation package. Larger companies with higher revenues may offer more competitive packages.

Industry: The industry in which the company operates also plays a crucial role. For instance, tech companies might offer stock options or equity , while manufacturing firms may focus more on bonuses tied to production efficiency.

Geographical location: Salaries and compensation packages vary by region due to differences in the cost of living and local market conditions.

Sales targets and performance metrics: Compensation is often tied directly to the achievement of sales goals, whether in terms of revenue, new customer acquisition, or other performance indicators.

Market competition: Competitive pressure in the labor market can push companies to offer more attractive compensation packages to attract top-tier candidates.

Leadership responsibilities: In addition to sales quota payments, the VP of Sales often has managerial and strategic responsibilities, such as overseeing the sales team, developing new sales strategies, and driving business growth.

When designing the compensation package for the VP of Sales, it's important to consider the dynamics of the broader sales team.

Alignment with sales team goals

The VP of Sales’ compensation should align with the sales team’s goals, balancing short- and long-term incentives. Focus not just on net new revenue but also on client success and the sales rep comp plan to avoid scenarios where VP Sales hits targets but disrupts team cohesion or where VP Sales killed collaboration.

Performance-based incentives

Incorporate individual and team performance metrics into the VP’s compensation, encouraging collaboration. Include metrics like sales rep performance and client success to drive toward on-target earnings and support adding sales reps effectively.

Clear and transparent communication

Communicate the VP of Sales’ compensation package to the team. Transparency helps ensure everyone, including the client success team and sales reps, understands expectations and how success will be rewarded.

Recognition of team contributions

The VP’s compensation should reflect the entire sales team’s performance. Linking rewards to team success integrates the sales rep comp plan and acknowledges contributions, promoting leadership that promotes overall team success.

AS mentioned, creating a VP of Sales compensation package requires careful consideration and a step-by-step approach to ensure it is competitive, fair, and aligned with company objectives. Below is a detailed guide on how to structure this process:

Set clear sales goals, such as revenue targets, market expansion, and customer retention. Ensure that the VP of Sales is incentivized not just for achieving revenue goals but also for meeting these other objectives. Outline these goals carefully before designing the compensation package.

Research industry standards and compare compensation packages. Look at salary data for similar roles and consider competitors' structures to ensure your offer is competitive and attractive to top talent.

Market Pricing provides detailed market pricing data, essential for benchmarking compensation against industry standards.

Combine base salary with variable pay (bonuses, commissions) to create a balanced compensation package. Depending on your company’s needs, you might choose a 50/50 split or adjust the ratio based on sales targets.

Define clear, measurable metrics that align with your sales goals, such as revenue target or profit margins. These metrics should be challenging but achievable to motivate high performance.

Offer long-term incentives like stock options or profit-sharing to align the VP's interests with the company's long-term growth and sustainability.

Competitive Compensation ensures that long-term incentives are competitive and aligned with the company’s long-term objectives.

Regularly review and adjust the compensation package to keep it competitive and aligned with evolving company goals and market conditions.

Reporting provides advanced reporting capabilities to facilitate regular reviews and adjustments of the VP of Sales' compensation package, ensuring it remains competitive and aligned with company goals.

A compensation template can help you design a structure that is both clear and adaptable. Below is a simplified template that you can adjust based on your company’s needs:

This sample outline of VP of Sales compensation package, detailing a base salary of $150,000, performance bonuses up to $50,000, and a 1% commission on sales revenue. It also includes other benefits such as stock options or equity, health insurance coverage, and more.

VP of sales compensation structure example

Here are some examples of VP of sales compensation plan

50/50:25+ Stretch plan

The 50/50:25+ stretch plan is ideal for startups in the growth phase. It offers a balanced compensation package with a 50% base salary, 50% commission, and a 25% accelerator bonus on revenue above target. This plan motivates the team to exceed targets while providing financial security. Setting realistic goals is crucial to avoid either overpaying or demotivating the team.

70/30: Equity plan

The 70/30: equity plan is suited for attracting experienced VPs who value stability. It includes 70% base salary and 30% commission, with additional stock or cash bonuses for exceeding targets. The equity component keeps VPs invested in the company’s long-term success and is an effective way to attract and retain top talent who want to make a meaningful impact.

Year-over-year comparison plan

This plan ties bonuses to the growth of key financial metrics like revenue and gross profit by comparing year-over-year performance. Bonuses are awarded based on the company’s growth, motivating the VP to focus on strategies that drive progress. The flexibility of this model allows it to be customized to suit the specific needs of your startup, encouraging consistent performance and team growth.

Designing a VP of Sales compensation package demands a strategic and thoughtful approach. Aligning the compensation package with your company’s goals, market standards, and sales performance metrics, you can develop a plan that attracts top talent and drives sustained growth. Ensuring that the compensation structure is transparent, fair, and regularly reviewed will help keep the VP sales ahead in performance, promoting motivation and effectiveness in leading your company to success.

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A Sales Leader’s First 90 Days: Preparing for Day One

The average tenure of a sales VP is incredibly brief – about 18 months. That’s not a lot of time to make a big impact. What we know is that new sales leaders must get the first 90 days right to be successful in a new role.

In this series of four blogs, we will tackle the top 90-day challenges facing sales leaders taking on a new role:

• Cutting down on the initial chaos
• Learning your new organization deeply within 30 days
• Obtaining early wins to establish momentum
• Assessing organizational alignment with sales and setting longer-term strategy

Seasoned professionals may think, “Thanks for pointing out the obvious.”

But here’s the thing…

Sales is a messy business, full of messy human beings. Each hold their own capabilities, expectations, personal goals, learning styles, and political agendas.

Understanding them and avoiding mishaps is no small feat – regardless of how much experience you hold.

High Stakes

The company revenue rests with you. On average, you’ll have one fiscal quarter to prove you perform to management’s expectations, otherwise you might be out the door.

Our goal is to supply practical tools . These tools will help a new sales leader avoid mistakes and  excel in the first 90 days. Many opportunities aren’t visible at first glance. This can stem from chaos, assumptions, and navigating the environment of the company.

After all, we’ve yet to meet a new sales VP who told us their learning curve was  gradual .

Cutting Down on Transitional Chaos

Our focus is cutting down on the typical chaos that accompanies a role transition. It helps by spending time preparing well before your first day. For example, by asking for specific information in advance that helps your transition.

There are reasons for putting in advanced effort. They pay off significantly in cutting down on the initial chaos that creates the fog of transition .

Here’s how:

• Surfaces any risk related to customers, star performers, revenue retention, impending high-value deals, or employee morale
• Crystalizes the immediate mitigation actions you’ll need to take
• Accelerates your understanding of sales team composition, structure, and financial performance – these three areas need tactical decisions first
• Allows you to review interviews and research through the lens of this new information; then  deliberately look for gaps. If these are not filled, it adds to the fog of transition

You’ll arrive on the first day with a list of specific people to interview (beyond your direct reports) and questions you want to ask.

Six Sales Leader Transition Traps

Garnering credibility isn’t the only reason to get a jump on your first day.

Advanced preparation helps avoid serious mistakes that sales leaders are more susceptible in making during early days. Leaders are prone to making more assumptions when faced with a steep learning curve.

There are six “transition traps” new sales leaders must watch out for:

• Failing to secure your team because of assumptions about team morale, commitment, and job satisfaction
• Misjudging sellers or making hiring/firing decisions based on assumptions about the ideal seller capabilities
• Setting expectations that you’ll grow revenue by a specific percentage on a deadline before fully understanding the average sales cycle
• Failing to understand expectations for how your sales team should interact with business operations: product development, manufacturing and distribution, solution implementation, customer support, and marketing
• Not building the necessary relationships to call on when your team encounters issues
• Over-estimating your team’s capacity to absorb and sustain process changes you intend to implement

Let’s look at an example of a sales VP who found himself in a difficult situation, because he made an eminently reasonable assumption that was entirely incorrect.

The Price of Making Assumptions - A Case Example

George had confidence in his ability to take over sales at his new employer, a maker of backpacks and outdoor-lifestyle luggage. And with good reason. He’s a 29-year veteran of the consumer-packaged goods industry.

His first employers included Newell Rubbermaid and The Thompson Company. Both are well-known for their classical CPG training. George was fortunate to benefit from these programs.

From there he worked for companies with varying degrees of formalized process, structure, and sales support. He’d always been successful. This would be his second job as a sales VP, and he was looking forward to it.

He’d be working in a new category with different retailers and channels he hadn’t experienced. He was ready for it. As a meticulous planner, George started studying the luggage category. He also visited stores that sold his new employer’s product.

He used what he learned to ask questions, while still transitioning out of his previous company. They’d already told him the tool he’d need to evaluate his sales team and their ability to drive revenue. Performance, they felt, could be improved, and it was with this expectation that he accepted the offer.

The Crucial Pivot Point

Almost immediately, it was clear to George that he’d have to make team changes. No problem. He understood the exact qualities that he wanted in high-performing sellers.

His years of experience formed a crystal-clear picture. He gave the profile to HR, handled the attrition meetings with the current staff, and started interviewing.

By day 60, George had started onboarding new team members. However, there remained some degree of disorder. It made him uncomfortable, not because he doubted his abilities, but because he felt he was missing something in the larger picture.

He was, frankly, still onboarding himself – learning the categories, establishing internal relationships, and absorbing the culture. He was doing so while simultaneously hiring team members and travelling to customers.

The pace was fast; it was obstructing his vision and he knew it. He persisted, reasoning that once the new team members were on board, things would settle. Then, he could focus on strategy.

Around day 90, George’s discomfort appeared. Because of his classical training, he assumed. And thus was mistaken.

In all his years working in consumer products,  brand managers  made the decisions about what products to sell. They made them based on consumer insights, industry trends, competitor activities, and the needs of their top retailers. It’s typically a highly data-driven process.

Here, it was the  sellers themselves   who initiated new product designs  based on needs and requests from retailers.

The sellers worked closely with designers to build these products. In effect, it gave most major retailers exclusive products. If the sellers  didn’t  develop their own products, they had nothing to sell.

George discovered what his sales team was expected to do: product design, packaging, setups, costing. These expectations hadn’t come up during his interviews, likely because the firm was accustomed to operating this way. It hadn’t occurred to them that it was out of the ordinary.

George had hired several new sellers, those with sales capabilities but no experience in product design. Based on how things were run to-date, he appeared to have hired the wrong people.

90 days into his new position, George realized that he dried-up much of his own product pipeline in key categories. Upcoming sales meetings were not far away.

What was George going to do?

The Recovery

George fell into two different sales leader transition traps:

• Failing to understand early and fully how sales impacts  operational aspects  
• Making hiring or attrition decisions based on assumption of the seller capabilities required

“If I could go back in time and do it again, I would have asked them to describe the product development process in detail - from light bulb to shipping label. Then, I would ask how the sales team was involved at every point in this process: what they’re responsible for, where they need to give input, how much actual control is in their hands, what the performance expectations are,” says George.

George managed through his first selling season by relying on existing product development processes and the help from team members. He then started advocating for a brand manager.

He took steps to create a “core” set of product offerings, appropriate for multiple retailers and channels. This would cut down on the expensive practice of offering too much exclusivity.

George never dreamed that he’d be setting product strategy. It was not his wheelhouse; yet here he was, and the experience took its toll.

“I felt like I couldn't bring anything I’d learned to the table. It was as if I’d been a football player all my life, and you suddenly put a hockey stick in my hand and said ‘play’.”

What revenue, efficiency, growth, and customer opportunities had George missed? Constant vigilance against making the assumptions associated with these initial traps is the best way to inoculate yourself.

Preparing for Day 1: Our Recommendation

Our recommendation for sales leaders taking on a new team is to onboard yourself. Take specific steps to gather pragmatic information that the company can provide in advance.

“Leverage the quiet time between roles,” says David Cottingham, Vice President of sales at RFIdeas. “You think you’ll have time once you start, but you won’t.”

You have three objectives in doing this:

• Identify any financial, customer, or employee risk that may need immediate mitigation
• Cut down on the fog of transition by getting to the basics in advance. This includes team composition, structure, and performance. Combine this with interview learnings and look for information gaps. Arrive on day one with a plan for who and what to interview
• Be aware of the six sales leader transition traps – recognize where you’re vulnerable to falling into one

What’s Next

In our next article , Learn and Take Action for Early Wins, we’ll explore information for leaders to learn in a short timeframe. Then, we’ll discuss how to utilize it to identify early win opportunities.

About The Author

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How to create a sales plan in 7 Steps

A sales plan is the first step toward defining your sales strategy , sales goals and how you’ll reach them.

A refined sales plan is a go-to resource for your reps. It helps them better understand their role, responsibilities, targets, tactics and methods. When done right, it gives your reps all the information they need to perform at their highest level.

In this article, we outline what a sales plan is and why it’s important to create one. We also offer a step-by-step guide on how to make a sales plan with examples of each step.

What is a sales plan and why create one?

Your sales plan is a roadmap that outlines how you’ll hit your revenue targets, who your target market is, the activities needed to achieve your goals and any roadblocks you may need to overcome.

Many business leaders see their sales plan as an extension of the traditional business plan. The business plan contains strategic and revenue goals across the organization, while the sales plan lays out how to achieve them.

The benefits of a sales plan

A successful sales plan will keep all your reps focused on the right activities and ensure they’re working toward the same outcome. It will also address your company's specific needs. For example, you might choose to write a 30- , 60- or 90-day sales plan depending on your current goals and the nature of your business.

Say your ultimate goal for the next quarter is $250,000 in new business. A sales plan will outline the objective, the strategies that will help you get there and how you’ll execute and measure those strategies. It will allow your whole team to collaborate and ensure you achieve it together.

Many salespeople are driven by action and sometimes long-term sales planning gets neglected in favor of short-term results.

While this may help them hit their quota, the downside is the lack of systems in place. Instead, treat sales processes as a system with steps you can improve. If reps are doing wildly different things, it’s hard to uncover what’s working and what’s not. A strategic sales plan can optimize your team’s performance and keep them on track using repeatable systems.

With this in mind, let’s explore the seven components of an effective sales plan

1. Company mission and positioning

To work toward the same company goals, everyone in your organization must understand what your organization is trying to achieve and where in the market you position yourself.

To help define your mission and positioning, involve your sales leaders in all areas of the business strategy. Collaborating and working toward the same goals is impossible if those goals are determined by only a select group of stakeholders.

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To get a handle on the company’s mission and positioning, take the following steps:

Collaborate with marketing: Your marketing teams live and breathe the positioning of your company. Take the time to talk to each function within the department, from demand generation to performance marketing to learn what they know.

Interview customer success teams: Customer support reps speak with your existing customers every day. Interview them to find common questions and pain points.

Talk to your customers: Customer insights are a foundational part of any positioning strategy. Speak directly with existing and new customers to find out what they love about your product or service.

Read your company blog: Those in charge of content production have a strong understanding of customer needs. Check out blog articles and ebooks to familiarize yourself with customer language and common themes.

Look for mentions around the web: How are other people talking about your organization? Look for press mentions, social media posts, articles and features that mention your products and services.

These insights can provide context around how your company is currently positioned in the market.

Finally, speak with the team in charge of defining the company’s positioning. Have a list of questions and use the time to find out why they made certain decisions. Here are some examples:

What important insights from the original target audience research made you create our positioning statement?

What competitor research led us to position ourselves in this way? Does this significantly differentiate us from the crowd? How?

What core ideals and values drove us to make these promises in our positioning statement? Have they shifted in any way since we launched? If so, what motivates these promises now?

How to communicate mission and positioning

In this section of the sales plan, include the following information:

Company mission : Why your company exists and the value you’re determined to bring to the market.

Competition: Who your direct competitors (those who offer similar products and services) and indirect competitors (brands who solve the same problem in different ways) are.

Value propositions: The features, benefits and solutions your product delivers.

What is brand positioning: The ultimate guide with 4 examples

2. Goals and targets

Define your revenue goals and the other targets sales are responsible for.

As mentioned earlier, sales goals are usually aligned with business goals. Your boardroom members typically establish the company’s revenue goals and it’s your job to achieve them.

Revenue goals will shape your sales strategy. Use them to reverse engineer quotas, sales activity and the staff you need to execute them.

Break your big-picture revenue goal down further into sales targets and activity targets for your team. Activities are the specific actions you and your reps can control, while sales targets are the results provided by those activities.

9 steps to creating the perfect sales strategy (with free template)

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Use data on sales activity and performance from previous years to calculate sales targets. You should break this down by pipeline stage and activity conducted by reps across all functions.

For example, how many cold emails does it take to generate a deal? What is the average lifetime value (LTV) of your customer?

Breaking down these numbers allows you to accurately forecast what it will take to achieve your new revenue goal.

This part of your sales plan might include setting goals like the following:

200 total cold emails sent per day

200 total cold calls made per day

25 demos conducted per day

5 new sales appointments made a day

100 follow-up emails sent per day

Breaking down your goals into specific activities will also reveal the expertise needed for each activity and any required changes to your organizational structure, which will come into play in the next step.

How to communicate goals and targets

Within this section of the sales plan, include the following information:

Revenue goals : Reverse engineer the boardroom revenue goals to identify achievable sales goals and the number of staff needed to reach them. Sales targets : Use data on sales activity and past performance to define quotas and metrics for each stage of the sales pipeline.

Expertise needed for each activity: What qualities and attributes do your staff need to achieve these predefined activities? How much experience do they need vs. what can be learned on the job?

3. Sales organization and team structure

Identify the talent and expertise you need to achieve your goals.

For example, a marketing agency that depends on strong relationships will benefit more from a business development executive than a sales development representative (SDR) .

Use the targets established in the previous section to identify who you need to hire for your team. For example, if the average sales development rep can send 20 cold emails a day and you need to send 200 to achieve your goals, you’ll need around ten reps to hit your targets.

Include the information for each team member in a table in your sales plan. Here is an example.

Visualizing each role helps all stakeholders understand who they’re hiring and the people they’re responsible for. It allows them to collaborate on the plan and identify the critical responsibilities and qualities of their ideal candidates.

You want to avoid micromanaging , but now is a good time to ask your existing teams to report on the time spent on certain activities. Keeping a timesheet will give you an accurate forecast of how long certain activities take and the capacity of each rep.

How to communicate your sales organization and team structure

Team structure: These are the functions that make up your overall sales organization. The roles of SDR, business development and account teams must be well-defined.

Roles and responsibilities: These are the roles you need to hire, along with the tasks they’re responsible for. This will help you produce job descriptions that attract great talent.

Salary and compensation: How will the company remunerate your teams? Having competitive salaries, compensation schemes and sales incentives will attract top performers and keep them motivated.

Timeline: Attempting to hire dozens of people at once is tough. Prioritize hiring based on how critical each role is for executing your plan. Take a phased hiring approach to onboard new reps with the attention they deserve.

Building a sales team: How to set your group up for success

4. Target audience and customer segments

A sales plan is useless without knowing who to sell to. Having clearly defined customer personas and ideal customer profiles will help you tailor your selling techniques to companies and buyers.

Whether you’re looking to break into a new market or expand your reach in your current one, start by clearly defining which companies you’re looking to attract. Include the following criteria:

Industries: Which markets and niches do you serve? Are there certain sub-segments of those industries that you specialize in?

Headcount: How many employees do your best accounts have within their organization?

Funding: Have they secured one or several rounds of funding?

Find out as much as you can about their organizational challenges. This may include growth hurdles, hiring bottlenecks and even barriers created by legislation.

Learn about your buyers within those target accounts, learn about your buyers. Understanding your buyers and personalizing your sales tactics for them will help you strengthen your customer relationships.

These insights will change as your business grows. Enterprise companies may wish to revisit their personas as they move upmarket. For small businesses and startups, your target audience will evolve as you find product-market fit.

It’s important to constantly revisit this part of your sales plan. Even if your goals and methodologies are the same, always have your finger on the pulse of your customer’s priorities.

How to communicate target audience and customer segments

Profile: Include basic information about their role, what their career journey looks like and the common priorities within their personal lives.

Demographics : Add more information about their age, income and living situation. Demographic information can help tailor your message to align with the language used across different generations.

Attributes: Assess their personality. Are they calm or assertive? Do they handle direct communication themselves or have an assistant? Use these identifying attributes to communicate effectively.

Challenges: Think about the hurdles this persona is trying to overcome. How does it affect their work and what’s the impact on them personally?

Goals: Analyze how these challenges are preventing them from achieving their goals. Why are these goals important to them?

Support: Use this insight to define how your product or service will help these people overcome challenges and achieve their goals.

Behavioral segmentation: What is it and how can it drive engagement and loyalty

5. Sales strategies and methodologies

Define your sales approach. This includes the strategies, techniques and methodologies you’ll use to get your offering out to market.

This part of your sales plan may end up being the largest. It will outline every practical area of your sales strategy: your sales stages, methodologies and playbooks.

Start by mapping out each stage of your sales process. What are the steps needed to guide a prospect through your deal flow?

9 essential sales stages

Traditionally, a sales process has nine sales stages :

Prospecting and lead generation : Your marketing strategy should deliver leads, but sales reps should boost this volume with their own prospecting efforts.

Qualification: Measure those leads against your target account criteria and customer personas. Ensure they’re a good fit, prioritizing your time on high-value relationships.

Reaching out to new leads : Initiate emails to your target customers to guide new leads into the sales funnel. This outreach activity includes cold calling and direct mail.

Appointment setting: Schedule a demo, discovery call or consultation.

Defining needs: After the initial meeting, you’ll understand your prospect’s problems and how your product or service can solve them.

Presentation: Reveal the solution. This can be in the form of a proposal, custom service packages or a face-to-face sales pitch .

Negotiation: Dedicate this stage to overcoming any objections your prospect may have.

Winning the deal: Turn your prospects into customers by closing deals and signing contracts.

Referrals : Fostering loyalty is an organization-wide activity. Delight your customers and encourage them to refer their friends.

Not all of these stages will be relevant to your organization. For example, a SaaS company that relies on inbound leads may do much of the heavy lifting during the initial meeting and sales demo . On the other hand, an exclusive club whose members must meet certain criteria (say, a minimum net worth) would focus much of their sales activity on referrals.

Map out your sales process to identify the stages you use. Your sales process should look something like this:

To determine your sales methodologies, break each sales stage down into separate activities, along with the stakeholder responsible for them.

With your sales activities laid out, you can do in-depth research into the techniques and methodologies you need to execute them. For example, if you sell a complex product with lengthy sales cycles , you could adopt a SPIN selling methodology to identify pain points and craft the best solution for leads.

Finally, use these stages and methodologies to form your sales playbooks . This will help you structure your sales training plan and create playbooks your reps can go back to for guidance.

How to communicate sales strategies and methodologies

Within this section of the sales plan, include the following:

Sales stages: The different steps required to convert prospects into paying customers.

Sales methodologies: The different practices and approaches you’ll adopt to shape your sales strategy.

Sales playbooks: The tactics, techniques and sales strategy templates needed to guide contacts throughout each stage of the sales process.

6. Sales action plan

You have the “who” and the “what”. Now you must figure out “when” to execute your sales plan.

A well-structured sales action plan communicates when the team will achieve key milestones. It outlines timeframes for when they’ll complete certain projects and activities, as well as the recruitment timelines for each quarter.

The order in which you implement your sales action plan depends on your priorities. Many sales organizations prefer to front-load the activity that will make a bigger impact on the bottom line.

For example, when analyzing your current sales process and strategy, you may find your existing customers are a rich source of qualified leads . Therefore, it would make sense to nurture more of these relationships using a structured referral program.

You must also consider how recruitment will affect the workload in your team. Hire too quickly and you may end up spending more time training new reps and neglecting your existing team. However, taking too long to recruit could overload your existing team. Either can make a big impact on culture and deal flow.

To complete your sales action plan, get all stakeholders involved in deciding timelines. When applying this to your sales plan, use GANTT charts and tables to visualize projects and key milestones.

A GANTT chart shows you the main activities, their completion dates and if there are any overlaps. Here is an example:

By prioritizing each activity and goal, you can create a plan that balances short-term results with long-term investment.

How to communicate your sales action plan

Key milestones : When do you aim to complete your projects, activities and recruitment efforts? You can map them out by week, month, quarter or all of the above. Let your revenue goals and priorities lead your schedule.

Short- and long-term goal schedules: With a high-level schedule mapped out, you can see when you will achieve your goals. From here, you can shape your schedule so that it balances both short- and long-term goals.

7. Performance and results measurement

Finally, your plan must detail how you measure performance. Outline your most important sales metrics and activities, how you’ll track them and what technology you’ll need to track them.

Structure this part of your plan by breaking down each sales stage. Within these sections, list out the metrics you’ll need to ensure you’re running a healthy sales pipeline.

Performance metrics can indicate the effectiveness of your entire sales process. Your chosen metrics typically fall into two categories:

Primary metrics act as your “true north” guide. This is commonly new business revenue generated.

Secondary metrics are those that indicate how well specific areas of your sales process are performing. These include lead response time and average purchase value.

The metrics you select must closely align with your goals and sales activities. For example, at the appointment setting stage, you might measure the number of demos conducted.

Each team also needs its own sales dashboard to ensure reps are hitting their targets. Sales development reps will have different priorities from account executives, so it’s critical they have the sales tools to focus on what’s important to them.

Finally, research and evaluate the technology you’ll need to accurately measure these metrics. Good CRM software is the best system to use for bringing your data together.

How to communicate sales performance metrics

Sales stage metrics : Identify the metrics for each specific sales stage and make sure they align with your KPIs.

Chosen sales dashboard: Explain why you chose your sales dashboard technology and exactly how it works.

Performance measurement: Outline exactly how and what tech you will use to measure your team’s activities and metrics.

How to track, measure and improve your team’s sales performance

Developing a sales plan involves conducting market research, assessing current sales performance , identifying sales opportunities and challenges, setting measurable goals, creating a sales strategy, allocating resources and establishing a monitoring and evaluation framework.

To write a sales business plan, include:

An executive summary

A company overview

A market analysis

A target market description

Sales strategies and tactics

Financial projections

A budget and timeline

Make sure that you clearly articulate your value proposition, competitive advantage and growth strategies.

Final thoughts

An effective sales plan is an invaluable asset for your sales team . Although you now know how to create a sales plan, you should remember to make one that works for your team. Writing one helps with your sales strategy planning and aids you in defining targets, metrics and processes. Distributing the sales plan helps your reps understand what you expect of them and how they can reach their goals.

Providing supportive, comprehensive resources is the best way to motivate your team and inspire hard work. When you do the work to build a solid foundation, you equip your reps with everything they need to succeed.

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The Ultimate Guide to Being a Successful VP of Sales: Duties, Skills, and Salary

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How to use sales metrics to improve your sales performance

A 3-step formula for doubling your team's performance

Are you wondering how to drive revenue and success for your company?

To achieve these goals, companies are increasingly recognizing the importance of the Vice President of Sales role.

But, it's a role that is very difficult to hire for - and one that often doesn't work out as hoped. 

Burnrate.io calls the VP of Sales the " hardest SaaS job ", and outlines the complexities of driving success in the role. 

From a founder's perspective, getting your VP of Sales hire right is  vital - and it comes with a lot of pressure. VPs of Sales command a high salary and dictate the direction of your sales org. If they last 17 months (that's the average!), that means you've just sunk ~2 years of time, effort, and high salary.....and suddenly you're back at square one. 

But, don't worry! You can stack the odds in your favor and hire the right VP of Sales and give them the best chance to succeed. 

In this article, we will explore what a VP of Sales does, their responsibilities and skills, and the difference between a Vice President of Sales and a Director of Sales.

What does a VP of Sales do?

A Vice President of Sales is responsible for driving revenue and success for an organization. They oversee the sales team and develop strategies to achieve sales targets. They are also responsible for building and maintaining relationships with clients and stakeholders. Additionally, a VP of Sales analyzes market trends and customer needs to identify opportunities for growth and develop sales plans accordingly.

A VP of Sales is typically responsible for setting sales targets and goals for the team, as well as developing strategies to achieve them. They also manage the sales pipeline and ensure that sales processes are efficient and effective. A VP of Sales is often involved in hiring and training sales personnel, as well as providing ongoing coaching and support to the team. They also collaborate with other departments, such as marketing and finance, to align sales strategies with overall business objectives.

A VP of Sales must have strong leadership skills and the ability to motivate and inspire the sales team. They should also have excellent communication skills to effectively convey sales strategies and goals to the team and to build relationships with clients and stakeholders. Additionally, a VP of Sales should have strong analytical skills to track sales performance and make data-driven decisions. They should also be adaptable and able to adjust sales strategies based on market conditions and customer needs.

VP of Sales Job Description

As a VP of Sales, your job description includes leading and managing the sales team to achieve revenue targets. You will be responsible for developing and implementing sales strategies and tactics to drive business growth. Your role also involves building and maintaining relationships with key clients and partners to ensure customer satisfaction and loyalty.

Here's a sample job description you can use as you search for a great VP of Sales: [ VP of Sales Job Description Template ]. Remember to hit "File"-->"Make a Copy" to get your own editable version. 

VP of Sales Skills and Qualifications

To be successful as a VP of Sales, you need to possess a wide range of skills and qualifications. First and foremost, you should have excellent communication and interpersonal skills. This will enable you to effectively lead and motivate your sales team, as well as build strong relationships with clients and stakeholders. Additionally, you should have a deep understanding of sales strategies and techniques, as well as the ability to analyze market trends and identify new opportunities. Finally, strong leadership and decision-making skills are crucial, as you will be responsible for setting sales targets, making strategic decisions, and driving revenue growth for the organization.

VP of Sales Experience Requirements

To be considered for a VP of Sales position, you typically need several years of experience in sales leadership roles. This level of experience is necessary because the VP of Sales is responsible for driving revenue and leading the sales team to success. Hiring someone with a proven track record in sales leadership ensures that they have the skills and knowledge needed to effectively manage a sales team and achieve revenue targets.

Having a VP of Sales with extensive experience can bring several benefits to a company. Firstly, they have likely encountered various challenges and obstacles throughout their career, which means they have developed effective strategies and solutions to overcome them. This experience can help them make informed decisions and guide their team through any difficulties that may arise.

Additionally, a VP of Sales with a strong track record can bring credibility and confidence to the role. Their past successes demonstrate their ability to consistently meet and exceed sales targets, which can instill trust in both the sales team and the company's stakeholders. This can also help attract top talent to the sales team, as experienced professionals may be more inclined to work under a VP of Sales with a proven track record of success.

VP of Sales Salary Expectations

As a VP of Sales, you can expect a competitive salary that reflects your experience and the size of the company you work for. On average, the salary range for a VP of Sales can vary greatly, but typically falls between $150,000 and $300,000 per year.

Factors that can impact the salary range for a VP of Sales include the industry you work in, the location of the company, the company's size and revenue, and your level of experience and success in driving revenue growth. In industries with higher profit margins, such as technology or pharmaceuticals, VP of Sales salaries tend to be on the higher end of the range. Similarly, companies located in major metropolitan areas or with larger revenue streams may offer higher salaries.

Additionally, your track record of success in driving revenue growth and your ability to lead and manage a sales team can also impact your salary. If you have a proven track record of exceeding sales targets and driving revenue growth, you may be able to negotiate a higher salary. Overall, the salary expectations for a VP of Sales can be quite lucrative, but they are also dependent on various factors.

What makes a good VP of Sales?

Sales leadership is a key quality that makes a VP of Sales effective in their role. They should be able to inspire and motivate the sales team to achieve their targets and goals. A good VP of Sales should also have strategic thinking skills to develop sales strategies that align with the overall business goals and objectives. They should be able to analyze market trends and customer needs to identify opportunities for growth and develop sales plans accordingly.

Effective communication skills are essential for a VP of Sales. They need to be able to communicate sales strategies and goals to the sales team and ensure that everyone is aligned and working towards the same objectives. They also need to be able to communicate effectively with clients and stakeholders to build and maintain relationships. Additionally, a VP of Sales should have strong analytical skills to track sales performance, identify trends, and make data-driven decisions.

Adaptability is another important quality for a VP of Sales. They need to be able to adjust sales strategies and tactics based on market conditions and customer needs. They should be able to quickly adapt to changes and make necessary adjustments to ensure sales success. A good VP of Sales should also be able to handle pressure and work well under tight deadlines and challenging situations. BuiltIn has a great summary of VP of Sales characteristics (especially for tech).

Strategic Thinking

To be successful as a VP of Sales, you need to think strategically. This means understanding the overall business goals and developing sales strategies that align with them. By thinking strategically, you can identify new market opportunities, anticipate customer needs, and stay ahead of the competition. It also allows you to allocate resources effectively and make data-driven decisions that drive revenue and success.

Strategic thinking is essential for a VP of Sales because it helps you set clear objectives and develop a roadmap for achieving them. By analyzing market trends, customer behavior, and competitive landscape, you can identify areas of growth and develop targeted sales strategies to capitalize on them. This strategic approach ensures that your sales team is focused on the right opportunities and has a clear direction for achieving their targets.

In addition, strategic thinking allows you to adapt to changing market conditions and stay ahead of the competition. By regularly evaluating your sales strategies and making adjustments as needed, you can ensure that your team is always one step ahead. This proactive approach helps you identify potential challenges and develop contingency plans to mitigate risks. By thinking strategically, you can position your sales team for long-term success and drive revenue growth for the business.

What’s the difference between a VP of Sales and a Director of Sales?

A VP of Sales and a Director of Sales may sound similar, but there are key differences between the two roles.

As a VP of Sales, you are responsible for the overall sales strategy and revenue generation for the company. You have a broader scope and are involved in high-level decision-making and setting sales targets.

On the other hand, as a Director of Sales, you focus more on the day-to-day operations of the sales team. You are responsible for managing and coaching the sales team, ensuring they meet their targets, and providing support to help them succeed.

While both roles are crucial for driving sales and revenue, the VP of Sales has a more strategic and long-term focus, while the Director of Sales is more hands-on and focused on immediate results.

Responsibilities and Scope

Responsibilities and scope for a VP of Sales are significantly broader than those of a Director of Sales. As a VP of Sales, you are responsible for setting the overall sales strategy and goals for the company. You will also be involved in developing and implementing sales plans, managing the sales team, and driving revenue growth. Your scope of responsibility extends beyond just the sales team to include collaborating with other departments, such as marketing and product development, to ensure alignment and success.

In contrast, as a Director of Sales, your responsibilities are more focused on managing the day-to-day sales operations and activities. You will work closely with the sales team to provide guidance, coaching, and support, and you will be responsible for meeting sales targets and quotas. While you may have some input in the sales strategy, your primary focus is on executing the sales plan and ensuring the team's success.

Overall, the VP of Sales has a broader scope of responsibility and is more involved in strategic decision-making, while the Director of Sales is more focused on the tactical execution of the sales plan.

Decision-Making Authority

As a VP of Sales, you have a higher level of decision-making authority compared to a Director of Sales. You are responsible for setting the overall sales strategy and direction for the organization. You have the authority to make key decisions regarding sales targets, pricing strategies, and sales team structure.

In contrast, a Director of Sales typically has more limited decision-making authority. They may be responsible for implementing the sales strategy set by the VP of Sales and making decisions related to their specific team or region. However, they may not have the same level of authority to make strategic decisions that impact the entire sales organization.

As a VP of Sales, you have the authority to make decisions that can have a significant impact on the company's revenue and success. You have the ability to shape the sales organization and drive results through your decision-making authority. This level of authority comes with a higher level of responsibility, as the success of the sales team and the company as a whole relies on the decisions you make.

Reporting Structure

As a VP of Sales, you report directly to the CEO or the company's executive team. Your role is to provide strategic direction and oversee the sales team's performance. You are responsible for driving revenue growth and ensuring the sales team meets their targets.

As a Director of Sales, you report to the VP of Sales. Your role is to manage the day-to-day operations of the sales team and ensure they are meeting their sales goals. You work closely with the sales representatives and provide them with guidance and support to help them achieve their targets.

The sales team members report to the Director of Sales. They are responsible for prospecting, qualifying leads, and closing deals. They work closely with the Director of Sales to develop sales strategies and meet their individual sales targets.

Who reports to a VP of Sales?

A VP of Sales typically has a team of sales managers and sales representatives reporting to them. Sales managers play a crucial role in the sales team as they are responsible for managing and coaching the sales representatives. They report to the VP of Sales and provide updates on the performance of their team, as well as any challenges or opportunities they may have encountered.

Sales representatives also report to the VP of Sales. They are responsible for selling products or services to clients and meeting sales targets. They provide regular updates on their sales activities and progress to the VP of Sales. It is important for sales representatives to be aligned with the sales strategy set by the VP of Sales to ensure that they are working towards the same objectives.

Sales Managers

Sales managers play a crucial role in the success of a company's sales team. They are responsible for overseeing a team of sales representatives and ensuring that they meet their sales targets. As a sales manager, you report directly to the VP of Sales, who provides guidance and support in achieving the company's revenue goals.

In your role as a sales manager, you are responsible for setting sales targets for your team and developing strategies to achieve them. You also provide coaching and training to your sales representatives, helping them improve their sales skills and meet their individual targets. You regularly report on the progress of your team to the VP of Sales, discussing any challenges or opportunities that arise.

The VP of Sales relies on the sales managers to effectively manage and motivate the sales team. They look to you for insights and updates on the performance of the sales representatives and rely on your expertise to make informed decisions about sales strategies and goals. Your close collaboration with the VP of Sales ensures that the company's revenue objectives are met and that the sales team is working towards the overall success of the organization.

Sales Representatives

Sales representatives play a crucial role in the success of a company. As a sales representative, you report directly to the VP of Sales, who provides guidance and support to help you achieve your sales targets. It is important for you to align your efforts with the overall sales strategy set by the VP of Sales to ensure that you are working towards the same goals. This alignment helps to create a cohesive and efficient sales team.

By reporting to the VP of Sales, you have direct access to their expertise and knowledge. They can provide you with valuable insights and strategies to help you close deals and meet your sales targets. The VP of Sales can also offer guidance on how to effectively communicate with potential customers and address any challenges that may arise during the sales process. This close relationship with the VP of Sales allows you to receive ongoing support and coaching to help you improve your sales skills and achieve success.

In addition to receiving guidance and support, reporting to the VP of Sales also ensures that your efforts are aligned with the overall sales strategy of the company. The VP of Sales sets the direction and goals for the sales team, and it is important for you to understand and work towards these objectives. By aligning your efforts with the sales strategy, you contribute to the overall success of the company and help drive revenue growth. This alignment also helps to create a unified sales team that is focused on achieving common goals and objectives.

In conclusion, the role of a VP of Sales is crucial in driving revenue and success for a company - and not every strong VP of Sales candidate is actually going to be a good fit for your company. They are responsible for leading and managing the sales team, developing sales strategies, and driving sales growth. With their expertise in sales leadership, strategic thinking, communication, and analytical skills, they are able to adapt to the changing market and drive revenue for the company. A VP of Sales plays a vital role in the organization, ensuring the success and growth of the company through effective sales strategies and leadership.

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About the author, dan mcdermott.

Dan McDermott , our Chief Marketing Officer, is a seasoned copywriter and strategist who has helped over 500 businesses carve out a competitive edge. With a career spanning nearly 20 years, Dan has fine-tuned the art of developing compelling messaging that accentuates a business's strengths, setting it apart from competitors.

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8 competencies a vp of sales needs to succeed.

Lately several VPs of Sales have approached me or been referred to me. Some want help understanding what is happening with their sales force. Others are new to the role and “need to make sure this goes right” to prove they can do it. Others are concerned that they might “short change the team with gaps” in their skill set.

All these conversations made me wonder, how are CEOs determining who to hire as their VP of Sales? This is arguably the most important position in your company if you are looking grow revenue. The right person leads your organization down the path of record breaking growth that investors and stockholders look for. The wrong person results in a culture of under performance, excuses, and churn (both in salespeople and customers).

Before we get to what to look for in a VP of Sales, we first have to answer the seemingly simple and obvious question of where you are now and where you want to get to. Steve Martin describes the different stages of a sales organization in this HBR article. Are you a startup adding product lines, establishing a brand and market presence, hiring sales people as fast as you can? Are you getting competition pressure and need to differentiate yourself? Or perhaps you’ve won the battle and need to maintain your position and standing. Maybe you have been around for a while and are seeing increasingly diminished returns and need to clean house a bit...

And while each stage requires a different skill set in the VP of Sales you hire, whether you're a startup or an established small company looking for accelerated growth, or if you have new division or a territory that is under performing, your VP has the daunting task of building a sales model, recruiting (or culling) a team, and personally developing that team.

What 8 competencies are necessary for a VP of Sales to do that? What questions should be answered to determine these competencies?

• Leadership What is their impression of themselves as a leader? Do they believe, look, act, and sound the part? Do they focus on their ability to lead, or their team’s ability to follow? What do they do when their strategies do not align with others, can they still get to the desired outcome and consistent results? How do they make decisions; top down, bottom up, or a combination? Do they take strategic actions to achieve a written and shared goal, or act for the sake of action? How do they prioritize time on the team (not in it)?
• Strategic Thinker How will they focus on the right issues, not the most urgent ones demanding their attention? Will they train and coach with a process and system? Can they put their ego aside and know when to concede a point or quit a losing battle? What would their first 90 days look like? Will they chase the next shiny object or adopt best practices in the areas that are in need of improvement? How do they determine what needs improvement? What is their approach to change and problem solving? How resilient are they in the face of failure?
• Develops Strong Relationships   Are they respected inside and outside of the organization? Do they have a social media following? Can they handle criticism without hurting relationships and use it to improve? Will they spend time in the field with both their managers and reps? How do they handle managers who are upset? Will they spend time building relationships?
• Personal   How high is their EQ (emotional intelligence)? How committed are they to success? What are their goals? Are they written down? Do they have a plan to achieve them? Are they a self starter? Do they think everyone is? Can they work independently? Do they look for challenges? Do they prefer to play it safe? How strong is their self esteem? How are they motivated? Do they have a positive or negative outlook ?
• Coaching What is their method, approach, and style for coaching? How often will they debrief managers? What are their strategies for handling large vulnerable accounts? How will they get their sales force to ask the enough of the right questions? How much of what their sales teams tell them do they believe? What are their mindsets about money? Are they comfortable discussing it? How do they expect their team to sell? How much do they think the team should watch them? Are they more likely to ask questions, or tell the team what to do?
• Motivating How do they run sales meetings and design compensation plans? Do they use motivation or threats as the primary means to accelerate growth? What expectations do they set and how do they communicate them? How will they continuously raise the bar? How do they recognize their managers?
• Accountability How do they handle resistance and attitude problems? Will they confront when necessary? Do they rely on lagging or leading metrics to manage performance? How patient are they when things get tough? Do they take responsibility for lack or results or find reasons elsewhere? Will they cave into discounting tactics?
• Recruiting How do they determine the right people are in the right seats? What does the ideal sales person profile and manager look like? How does that align to the ideal buyer? Do they work with or against HR in recruiting? How much is recruiting a part of the growth strategy?

The VP who has mastered every one of these competencies doesn’t exist. Remember that your sales organization is a reflection of your company’s culture. Does your culture allow for learning and development at every level? Is it okay not to have the answers and do you support

In addition to these competencies, a VP of Sales also needs to be the example to their team. Have they mastered the fundamentals of sales?

Are you setting your new VP of Sales up to fail?

Are you a founder or CEO wondering if your VP has these fundamentals and competencies? Are they going about this the best way possible? I hate to break it to you, but the VP who has mastered every one of these competencies and fundamentals doesn’t exist.

Your sales organization is a mirror to your company’s culture. Does your culture allow for learning and development at every level? Is it okay not to have the answers and do you support the seeking of those answers?

It’s not a question of if there are important skills that your VP haven’t developed or mastered yet- it’s a questions of which ones and if they want to master them. Are you worried that there are weaknesses preventing them from being as effective as them could be? Maybe, like the VPs we talk to, they are too but are afraid to admit they need help because it might look like they don’t know what to do and that is unacceptable.

It typically takes a new manager or VP six months to 'understand the sales force’. A lot can happen in 6 months. And it puts the analysis and plan on the shoulders of one person, which isn’t realistic, scientific, or repeatable.

What if you could use an objective evaluation of the sales force that saves months of figuring it out? What if you could give your VP of Sales instant insight into the capabilities of their sales force? How would that impact their ability to design a targeted and predictable development program ?  

Topics: sales development , sales leadership

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30-60-90 Day Sales Plan: The Complete Guide

Sales reps who use the 30-60-90 Day Sales Plan are  30%  more successful than those who don’t. This clearly supports the fact that without a structured plan, you might face stress and the risk of not meeting your targets, which can be frustrating.

Don’t know where to start?

This guide provides a step-by-step 30-60-90 Day Sales Plan. It helps you set clear goals, understand important strategies, and use the first three months effectively to achieve long-term success. Let’s dive in and boost your sales journey!

• What is a 30-60-90 Day Sales Plan?
• Empowers Sales Reps with a 30 60 90 Day Sales Plan
• Maximizes Resources with a Strategic 30 60 90 Sales Manager Plan
• Fosters Team Unity through Transparent 30 60 90 Day Objectives

Interviewing for a New Sales Position

On a new job, assignment to a new territory, creating a leadership strategy, leveling up sales skills, 30-day sales plan (day 1–30), 60-day sales plan (days 31–60), 90-day sales plan (days 61–90), 90 day sales plan (day 61-90).

• 30-60-90 day plan: Manager example
• 30-60-90 day plan: New sales territory example

Not including details

No plan to measure success, making an unclear plan, a fixed mindset, not following up with your manager, exceeding expectations with the 30-60-90 day sales plan, what is a 30-60-90 day sales plan .

A 30-60-90 Day Sales Plan is a plan that new salespeople use for their first three months on the job. It helps them set goals and know what to do.

Days 1- 30:  In the first month, new reps focus on learning about the company, its products, and how sales work.

Salespeople start by making connections with coworkers and customers. They learn what customers need and get to know the tools and resources they can use for sales.

Days 31-60:  During the second month, sales reps implement their strategies more. They identify target clients, develop sales techniques, and refine their pitch.

In the second month, they talk to more customers and find more people who want to buy things.

Days 61-90:  In the third month, the focus shifts towards expansion and refinement. Sales reps concentrate on closing deals, meeting targets, and exceeding customer expectations.

They improve by listening, assessing their progress, and planning.

During this time, they set bigger goals and prepare for the coming months.

What are the benefits of creating a 30-60-90 day plan? 

Following are some benefits of creating a 30-60-90 day plan:

1. Empowers Sales Reps with a 30 60 90 Day Sales Plan

A 30-60-90 Day Sales Plan serves as a transformative guide for sales reps new to the field. This structured approach breaks down the initial three months into distinct phases, offering a comprehensive sales plan template adaptable to various sales scenarios. It empowers reps with examples and templates, aiding in the creation of tailored plans for sales territories and individual growth.

The plan isn’t just about numbers; it’s a strategic 60-day sales business plan merged with a 90-day action plan, enhancing the performance of sales teams. It fosters skill development, boosts confidence, and aligns with strategic sales goals. Moreover, it supports the creation of free sales plan templates that encourage team collaboration, ensuring all team members contribute to the shared objectives.

2. Maximizes Resources with a Strategic 30 60 90 Sales Manager Plan

For sales managers, the 30-60-90 Sales Manager Plan optimizes resource allocation. It streamlines tools, training, and support, precisely matching them with outlined tasks and objectives. This plan empowers managers to curate sales action plans, enhancing team performance and driving toward set sales goals within the designated 30-60 90-day sales plan template.

The flexibility of this plan lies in its adaptability to diverse sales scenarios: a 90-day sales plan, a 30-60 90-day plan for sales territory management, or even a free sales plan template encouraging creative approaches. It doesn’t just assign tasks; it fosters collaboration, empowering managers to facilitate collective problem-solving among sales team members.

3. Fosters Team Unity through Transparent 30 60 90 Day Objectives

The cornerstone of our approach is the creation of a transparent 30 60 90 Day Plan that aligns with team objectives. This plan establishes shared goals and examples, encouraging open communication among sales team members. It nurtures a collaborative environment where discussions flow freely, aiding in the creation of effective sales plans and problem-solving strategies.

Transparent goal-setting ensures accountability, encouraging sales team members to take ownership of their responsibilities within the 30-60 90-day sales plan. 

When To Use A 30-60-90 Day Sales Plan? 

You can use the 30-60-90 Day Sales Plan at different career stages as a sales professional in various situations. It helps you succeed and grow.

Here’s how and when you can use this plan:

When applying for a new sales position, a well-crafted 30-60-90 Day Sales Plan can impress potential employers. 

It showcases your preparedness and strategic thinking, making you a standout candidate.

For new hires, this plan acts as a roadmap, easing the transition into the new role. 

It provides precise tasks and goals for the first three months, ensuring a smooth onboarding process.

As a sales rep in a new area, you can use this plan to learn about the market, make connections, and become well-known. 

It assists in adapting strategies according to the specific needs of the new territory.

As a sales manager and leader, you can use the 30-60-90 Day Sales Plan to guide your teams. 

It helps in setting clear objectives, aligning sales efforts, and achieving team-wide goals.

If you are looking to enhance your sales skills, this plan acts as a self-improvement tool. 

It enables focused learning, goal setting, and skill development within a structured timeframe.

How Do You Create A 30-60-90 Day Sales Plan? 

Creating a 30-60-90 Day Sales Plan is a strategic process that sets the stage for your success in a new sales role. Here’s a step-by-step guide to building a plan tailored to your specific goals and the demands of your position:

Begin by understanding your current situation. Assess your strengths, weaknesses, and the unique challenges of your sales role. 

Identify key areas that need improvement and consider the goals you want to achieve within the next 90 days.

Understand Your Environment: 

Dive into your new workplace. Familiarize yourself with the company culture, products, and services. 

Learn about your colleagues, customers, and competitors. Understanding your environment is essential for effective sales strategies.

Build Relationships: 

Make friends with your coworkers, both in your sales team and in other parts of the company. 

Building relationships creates a foundation for trust and future business.

Master the Basics: 

Ensure you have a solid grasp of sales techniques, product knowledge, and internal processes. 

This foundational understanding is crucial for effective communication with clients and team members.

Improve your way of talking: 

Look at how you talked to customers at first and make it better based on their responses.

Identify what works and what doesn’t. 

Adjust your approach to align with customer needs and preferences.

Strengthen your existing connections and expand your network further. Attend industry events, conferences, or networking sessions. 

Expand Your Network: 

A broader network opens doors to new opportunities and potential clients.

Focus on Productivity: 

Streamline your workflow, use sales tools, and focus on tasks. Improve your time management skills to maximize productivity. 

Efficient use of resources ensures you can handle a larger volume of clients.

Optimize Strategies:  

Analyze the results of your previous efforts and optimize your strategies. Identify successful techniques and emphasize them in your approach. Address any challenges or roadblocks.

Set Ambitious Goals: 

Based on your understanding of the market and your performance, set ambitious yet achievable goals for the upcoming months. 

These goals should challenge you and drive your continuous improvement.

Seek Feedback: 

Request feedback from clients, colleagues, and supervisors. This is because constructive criticism helps you refine your skills and approaches. Act on the feedback received to enhance your performance.

30-60-90 day plan examples 

Here are two examples that show how people can adapt this plan for different roles.

30-60-90 day plan: Manager example  

First 30 Days (Day 1-30):

• Conduct one-on-one meetings with team members to understand strengths and challenges.
• Go through historical sales data to identify trends and areas for improvement.
• Start team training sessions focusing on product knowledge and advanced sales techniques.

Goals: Boost team collaboration, enhance product expertise, and address immediate sales hurdles.

Next 30 Days (Day 31-60):

• Analyze team performance data and adjust strategies.
• Introduce a new sales method based on market trends and customer feedback.
• Track individual progress and provide tailored coaching to team members.

Goals: Increase sales by 15%, make the team work better, and use two new successful sales methods.

Final 30 Days (Day 61-90):

• Conduct a team review session to gather feedback on implemented changes.
• Refine sales strategies based on team and market responses.
• Develop long-term sales goals and action plans for the upcoming months.

Goals: Keep selling more, make things better all the time, and plan for success in the long run.

30-60-90 day plan: New sales territory example 

• Immerse in the new territory, understanding local market dynamics and customer preferences.
• Nurture existing relationships and identify potential clients.
• Focus on building a trustworthy bond with clients.
• Learn more about the product to sell it better.
• Use existing connections to get new customers and grow.
• Install targeted marketing strategies tailored to local details.
• Deepen market penetration and increase brand visibility.
• Collaborate with local businesses and engage in community involvement for enhanced reputation.
• Gather customer feedback for necessary adjustments and ensure satisfaction.
• Build lasting relationships and offer customized solutions to clients.
• Establish the company as a trusted entity within the territory.

Goals: Ensure steady revenue streams, create future opportunities, and solidify the company’s reputation.

4 Mistakes to Avoid When Building A 30-60-90 Day Sales Plan 

A 30-60-90 Day Sales Plan is powerful, but certain mistakes can negatively affect its effectiveness. Here are the common errors you should avoid:

One of the primary mistakes is creating an unclear plan lacking specific details. Not explaining what you want to achieve, how you plan, and the steps to take can confuse your team and make them less productive.

With a defined method to measure success, it’s easier to test the plan’s effectiveness. Setting quantifiable targets and implementing key performance indicators (KPIs) is crucial. This data-driven approach ensures you can track progress and make informed adjustments.

An unclear plan often results in misunderstandings and misaligned efforts. It’s vital to express your expectations. Lack of clarity can result in team members working at cross-purposes, diminishing the plan’s impact.

A rigid approach, unwillingness to adapt, and resistance to change can hinder growth. Embrace flexibility and openness to new ideas. A fixed mindset limits innovation and obstructs the plan’s ability to adapt to evolving market demands.

As a sales rep, lack of communication with your manager is a significant pitfall. Regular updates and feedback sessions are crucial. Not telling your manager how you’re doing, what problems you face, and what you’ve achieved can make it harder for everyone to work together.

In the fast-paced sales world, the 30-60-90 Day Sales Plan is a smart strategy. 

This guide reveals the details of this helpful approach, whether you’re new, leading, or improving in sales. It empowers you to succeed.

It’s not about setting goals; it’s about crafting a tailored journey to success. With a clear understanding of products and strong customer connections, you’re set for success. 

With this guide as your companion, step into the sales arena with confidence.

And don’t forget to thank us later. 

Q1: What is a 30-60-90 Day Sales Plan?

A 30-60-90 Day Sales Plan is a framework designed to guide sales professionals in their first three months on a new job. It outlines specific tasks and goals for each phase, ensuring a structured approach to success.

Q2: Who can enjoy a 30-60-90 Day Sales Plan?

Salespeople, managers, and those starting new roles or in new areas can enjoy this plan. It offers a clear guide, helping improve skills, set goals, and use effective sales strategies.

Q3: How do I create a personalized 30-60-90 Day Sales Plan?

To make your plan, consider what you’re good at and what needs work. Learn about your surroundings, set goals, and adjust your methods based on feedback and outcomes. The guide provides detailed steps for crafting your unique plan.

Published On: February 14, 2024

Written by: sushant shekhar, categories: sales sales tips, you might also like.

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Sales Management: Core KPIs and Goals for a VP of Sales

There are several options for key performance objectives or core KPIs that a company sets for the sales leader.  The obvious KPI would be the actual Sales $ closed but there is more to the job.  The key areas of measurable responsibilities of a sales executive (or any operational executive for that matter) with regard to execution are:

• People – hiring the right people (then onboarding & developing them)
• Execution & Operations – coordinating operations (managing execution and performance towards results)
• Strategic Direction – setting the strategic direction (action plan & the intended objectives)

Thus the Core KPIs have must reflect all these, but let’s first start with the 2 — People/Team KPIs and Operations/Execution KPIs and consider as guidance for the ones you will set at for your company’s Sales Leader:

• how many candidates you hire and go through initial training and pass
• Ramp and time to ramp effectiveness
• Sales Team NPS from a 360 Review
• Team Turnover (some people think a 30% turnover is good, but I think longevity is better)
• How many new team members ramp and hit their “at-ramp” targets on time
• Total Sales $ Bookings
• $MRR / $ARR added
• Upsell/Cross-Sell $
• Total # of Deals Closed
• Average Deal Size $ (and by segment)
• Average Win Rate % (and by segment)
• Quota Attainment %
• Sales pipeline generation and conversion (for Prospecting / SDRs)
• Sales Forecasting Accuracy
• Customer NPS (if they own Customer Success and post-sale relations)
• Executive Team NPS (approval of the leadership & alignment with the VP of Sales)
• Top or company-wide strategic goals achievement (anything they contribute and align to)

Of course, depending on your context, there may be many other KPIs like Territory related, Account Management related, etc.

What else?  What are some other goals or core KPIs you have set for VPs of Sales as the company’s CEO?

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The First 100 Days – When a New VP of Sales or a CRO Starts

I was recently asked what a new Sales Leader should do during their first three months (i.e. the first quarter) at their job.  And just the other day, I saw a link from SBI  posting a video where Matt Sharrers  (the CEO of SBI) asked Eric Vermillion (a former CRO of BlueCat) about what happens when new head of Sales starts – see this video here: “ A Quick Start Guide for New CROs “.

Eric mentioned the following in this video (my notes on the couple of steps that Eric discussed):

• Don’t be the “anti- guy before me” – don’t start your legacy by saying what a louzy job the prior executive did and don’t criticize them. Focus on building your own legacy and learn the good things they did before.
• Listen, learn and build a plan. Don’t bring in the slide decks from your last place and just replace the logo – every company is different even if it looks similar.  You need to build a plan that is relevant to your new organization at this time and place.
• Create a roster of the top deals that you can personally impact and help deliver yourself (not necessarily the biggest ones on the rails but the ones you can help with)
• Have a level of transparency with the rest of the organization and build a good story with everyone about their involvement and what you expect in terms of helping sales with deals. Get the rest of the company behind you and get them vested in the success of the sales organization.  Your success is the byproduct of the buy-in that the rest of the people have.

I really like what Matt and Eric discussed and also wanted to share some of my own thoughts on this topic.  I think of starting a new role as the “First 100 Days” which applies to U.S. Presidency and equally applies for a VP of Sales or a CRO (or a CEO or any C-Level for that matter).  Here are a couple of steps in the process for the First 100 Days that I want to share:

• Remember that “Prescription without diagnosis is malpractice” – first seek to understand what is happening rather than instantly prescribing any changes
• Do not act impulsively on what you learn or hear – keep listening and learning
• Seek to understand before seeking to be understood
• respect the existing culture and the people who have invested previously in the organization
• don’t rush into making any changes right away before you really understand and listen
• be supportive and respectful of the legacy of the organization in all communications with everyone
• as Eric Vermillion discussed in the SBI video, don’t criticize the previous VP – it’s unnecessary, not tactful & sets a bad precedent for your team
• also – while you will begin to instill your own systems, decisions, processes and, of course, sales team “Principles/Core Values” as well as Sales Culture, you need to first ground that in respecting the history before you earn the trust and the right to show why you can introduce something new (i.e. it should end up being a smooth and logical transition rather than an abrupt one that ignores and doesn’t respect what has already been working or been put in place and followed historically)
• The overarching focus is on “ Organizational Health ” during this period
• Spend 90% of your time with people – most of your time should be focused exclusively on the people
• Be present and ensure you earn trust of your new team
• Build bridges and new relationships
• Do a sales team weekly kickoff with an Open Q&A
• Communicate your intentions to listen, observe and learn
• Do a casual meet & greet for the team to get to know people outside of work
• Ensure everyone feels comfortable coming to you with any questions
• Meet other groups as well including Marketing, Customer Success, Product, etc.
• Invest in 1-on-1 time – ask what’s working and what’s not working
• Be Open-Minded to everything you hear and learn from the existing team
• aka “Guiding Coalition” –  trusted allies and stakeholders in managing the change period
• internal influencers who help you oversee the success during the transition and beyond
• a leader needs a team of willing and trusted people – successful transition is a team sport
• this is one of the key fundamental steps to do immediately to ensure ongoing sales productivity
• ensure that there is ongoing development to ensure to continuously level up the team
• every sales team in the sales group should have a process for sales coaching and ongoing training
• every FLM (Front Line Manager) should have a “coaching plan” for each of their reps on the team
• Create a Skillset Matrix – assess what skill gaps you need to fill
• If needed, recruiting world-class A-players is critical (it’s a continuous process – i.e. every day is a Draft Day)
• Remember that this can be a stressful time for the entire sales organization and the people don’t know what to expect
• Communicate your high-level vision and strategy for the long term (do not imply any short-term changes)
• Communicate your core values and principles even if you don’t yet formally implement them
• see what “ over-communicate ” really means by Patrick Lencioni
• Focus on how your actions and words can impact others before you say or do anything
• Be intentional in your communications and even in body language
• Avoid and disincentivize any gossiping or complaining
• Remember that your actions speak louder than words
• Be proactive and not reactive in your communication and clarity
• Your primary job is to make the sales team more successful and produce results
• But you can hit the ground with closing some deals which brings us to the next point…
• Be more of a player in the “Player / Coach” context
• Help sell new deals (usually at smaller companies you’ll do that right away)
• Help your sales reps close some of their deals – help bring a few deals in
• You can start with some existing leads or prospect for a bigger strategic deal
• If you sell then it’s a great way to dig in, learn and understand as a VP of Sales
• Culture of Accountability – it’s all about performance, execution and accountability
• Create a sense of urgency to keep executing and hit the sales targets
• Empower your team to be action-oriented and to have autonomy to execute
• Generate “short term wins” in the first 30 days and over the span of 100 days
• Transition is a critical time – ensure that your team is  focused on execution
• Reduce and mitigate any disruptions during the transition period
• Ensure the team is focused on the High Payoff Activities (HPAs)
• Keep an eye on Sales KPIs/metrics and leading indicators regularly
• Pipeline health – a healthy pipeline is key to ensuring the sales force makes the number
• Ensure that an effective Pipeline Management process is in place
• Review the pipeline metrics regularly
• carefully review lost Opps (even if qualified out) – what are the loss reasons, why do we lose
• understand why deals are typically lost as this is an important factor going forward
• start with the select strategic customers
• introduce yourself to new recent Customers
• join on the phone with prospective Customers to help close the deals
• you should try to meet in person with key and strategic customers
• this will help you get to know them really well
• will help you build true relationships that are valuable to the company
• don’t just get to know the business side, become real friends
• Understand the customer pain points and how your solution helps your customers
• You should also be helpful to your team when needed to finalize a sale with new customers
• Process drives outcomes
• Make sure you have the repeatable, predictable and consistent process
• Talk to Customers and understand their buying journey to make sure the sales process matches the way they want to buy
• assess the Overall Capability & Strength of the Sales Organization – how to audit the overall sales group strength
• begin looking at the existing  Sales Strategy  to understand if adjustments should be planned ahead
• assess the effectiveness of the  Go-to-Market (GTM) Strategy and Plan
• review the  Sales Process  to ensure it is effective and also consistent and repeatable
• review the Sales Playook to ensure everyone is getting consistent training and follows a consistent process
• At that stage it would be more general, focused on bigger picture
• Would include your general Summary of Expected Achievements, Sales Goals / KPIs, high-level People Plan, etc.
• Also think of it as a “30-60-90 Plan” (i.e. first 3 months) but under the banner of “ The First 100 Days “
• Establish the process for value creation and name the roles and responsibilities of the Guiding Coalition
• Establish the “small wins” milestones and more concrete goals for each month
• Communicate the plan to the executive team and the Sales group
• ensure there is alignment with all the key stakeholders and groups that help enable sales success
• make time to have a 1-on-1 with all your peer executive VPs in the company during the 2-4 weeks
• work closely with Marketing to gather the process of lead generation and pipeline creation for the sales team
• work with the Product team and understand the release timelines and the process of their work with sales
• Also: only *when and if* swift action is necessary – on rare occasions there are times when a new VP of Sales or a CRO starts out needing to make a few immediate  decisions combined with swift action in the first 30-60 days – but this should be done very carefully by considering the impact on the organization and its people and always with thoughtful input of key stakeholders, starting with the CEO and other executive team members based on carefully collecting facts and information

What else? What are some other thoughts on a quick start?

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How to Create a 30-60-90 Day Sales Plan [Template + Examples]

Casey O'Connor

What Is a 30-60-90 Day Sales Plan?

What are the benefits of implementing this sales plan, how to create a 30-60-90-day sales plan, 30-60-90-day sales plan template, 30-60-90-day sales plan examples.

A 30-60-90 day sales plan is a three-month sales plan that outlines the approach and specific strategies that a new sales rep or sales manager will take in their first 90 days on the job.

When a new sales rep creates a well-thought-out 30-60-90 day sales plan, it demonstrates to their team and manager that they’re a self-starter and have the skills and strategy to do their job effectively and efficiently.

In this article, we’ll go over everything you need to know about the 30-60-90 day sales plan, including why it’s so important, how to make your own, and a few examples to help you get started.

Here’s what we’ll cover:

• How to Create a 30-60-90 Day Sales Plan
• 30-60-90 Day Sales Plan Template
• 30-60-90 Day Sales Plan Examples

A 30-60-90 day sales plan is a clear outline of what a new salesperson or sales manager plans to learn and achieve in their first three months in the role.

Generally speaking, it’s a good idea to create your own 30-60-90 day sales plan any time you begin a new sales role. This demonstrates to the hiring manager — and, later, your new sales manager and colleagues — that you:

• Take initiative to plan for your success
• Look forward to learning about the company and integrating with the current team 
• Have specific ideas about how to add value to the organization

If you don’t create your own 30-60-90 day sales plan, some managers will make one for you. They may ask you to adhere to it as they evaluate your progress and offer feedback about your initial performance.

Each 30-60-90 day sales plan is unique, as they’re created based on the specific goals, skills, and organizational specifics of each individual sales professional and their company. 

That being said, they all generally tend to follow a similar framework: learn – implement – analyze & optimize.

This kind of initiative does not go unnoticed in a sales interview, and — when you eventually get the job — will help the onboarding process run as smoothly as possible. A great 30-60-90 day sales plan can significantly reduce ramp-up time and increase productivity in new hires. 

There is very little downside to creating and implementing a 30-60-90 day sales plan. Although there is a bit of legwork involved in the process, the results are well worth it. Remember — failure to plan is a plan to fail.

The benefits of this plan, on the other hand, are numerous and significant. Both individual sales reps/managers and overall organizations alike benefit from the structure and focus on results that 30-60-90 day sales plans provide.

Empowers Employees to Position Themselves for Success

When a salesperson takes on a new position, a 30-60-90 day sales plan can help them onboard with intention.

Not only does this kind of plan demonstrate to the manager that you’re serious about your (and the company’s) success, but it also helps outline the responsibilities of your new role for your own day-to-day benefit. It gives you an easy-to-follow plan as you navigate the challenges of starting a new position.

It also helps new sales reps and managers create and work toward sales goals in a scalable and sustainable way.

Enables Managers to Maximize Their Resources

Every sales manager appreciates when a new employee creates their own 30-60-90 day sales plan. Not only does it help ensure the success of the incoming rep, but it also enables the sales manager to make the most of their new talent and appropriately plan the way they’re going to use their resources.

A 30-60-90 day sales plan can also help highlight any misconceptions or misalignments the new employee has relative to their new role, or the organization as a whole. It creates a good opportunity for management and new hires to become fully in sync as they understand the scope of the job and define success in the role.

Creates Team-Wide Transparency

A 30-60-90 day sales plan can help foster trust between a new sales hire and their colleagues. It proves that the new hire is capable of taking initiative and meeting goals independently, and gives a clear indication of how the new hire will contribute to the team.

As mentioned above, each 30-60-90 day sales plan is highly unique. There is no one formula that will help sales professionals create a “perfect” plan.

There is, however, a general framework of steps that you can follow that will help you create a robust 30-60-90 day sales plan that’s specific to the organization with which you’re working. 

1. Research Your New Employer

Before a sales interview, or at least before onboarding at a new company, learn as much as you can about their business — who they serve, what they offer, and with whom they mainly compete. Generate a list of questions to ask about their operation and/or their goals.

2. Identify Your New Organization’s Goals

As soon as you can, try to find out some of the company’s business or sales goals. You might learn about these through a sales interview ; you could also gather this kind of information from social media or through LinkedIn. 

The point is to learn enough about some of the things the company is hoping to achieve; you can then speak to those goals in your 30-60-90 day sales plan. 

You’ll also want to ask if they have any goals for you as an individual. They might, for example, have a certain sales quota they’d like you to meet. These should also be incorporated into your 30-60-90 day sales plan. 

This takes a little extra effort, but it’s likely to resonate with a hiring or sales manager. It shows that you’re a team player, and that you have the skillset to help the company successfully reach their goals. 

3. Determine Your Own Priorities

It’s also important to take into consideration your own strengths and career goals when you’re making your 30-60-90 day sales plan. 

See how closely you can align your own professional priorities with those of the company; the more you can find ways to show that the two complement one another, the better off you’ll be.

4. Create a Timeline and Indicate How You’ll Measure Success

Some parts of your 30-60-90 day sales plan might be easy to measure. In Phase 2, for example, you might indicate that you plan to make 50 sales calls per day. That’s a metric that will be easy to account for and evaluate. 

Other components, though, might be tricker to define. In Phase 3, you might plan to “improve the way you handle objections.” This isn’t the most straightforward or tangible progress indicator, but it can be measured. 

A sales rep might determine that they’ve met this goal when they can speak confidently to a range of objections during a role play exercise, with fewer than 5 “errors,” with errors defined as extended pauses or verbal miscues. 

You’ll also want to assign timelines to each action or intended achievement. Being able to measure and put a timeframe on your goals are both important parts of the SMART goal framework.

The more specifically you can measure your progress, the more effective your plan will b e.

Tip: Growing your sales team? Grab some data-backed findings and strategies below.

The following template is an extensive and overarching checklist; not every item will apply to every salesperson or company. Similarly, you may find that you need to add additional components that are unique to your employment situation.

To make it your own, click “File” and select “Make a copy.”

Feel free to remove or add any items from this list; treat this as a template or guide and edit as needed for your circumstances.

Below are three examples of real-world 30-60-90 day sales plans. The first two are great examples of use cases we’ve outlined here in this article: a new sales rep and a new sales manager. 

Note, though, that there’s a third use case that we didn’t explore as fully: a new sales territory . The same basic principles of the 30-60-90 day sales plan apply similarly to this topic. 

As always, feel free to use and adapt as you see fit according to your specific circumstances.

New Sales Rep

This 30-60-90 day sales plan example is perfect for a salesperson starting a new position as a sales rep. 

• Complete all company-run onboarding, training, and/or coaching
• Learn about the company’s mission, values, and culture
• Become fluent in the specifics of the product and/or service
• Research the target market and ICP, and learn how to reach and communicate with your specific buyer personas
• Learn the names and roles of everyone on the team
• Schedule periodic check-ins with a mentor and/or managers to discuss progress
• Research your company’s competitors
• Identify a top performer who is willing to let you shadow them, and schedule a few times to do so
• Practice interacting with prospects
• Role play different sales scenarios with your mentor or other top performers
• Set sales goals using the SMART goal framework
• Keep a clear record/detailed notes about all of your sales activities so that you can optimize the process in the future
• Create a follow-up strategy and schedule
• Review your notes and identify areas of strength and improvement
• Make tweaks to your sales process and test them
• Create and stick to a daily schedule that aligns with your productivity goals
• Solicit feedback and incorporate it into your process

New Sales Manager

This 30-60-90 day sales plan example is perfect for a salesperson starting a new position as a sales manager.

• Identify key professional and personal pieces of information about every team member (i.e., birthday, kids’ names, preferred work environment, preferred method of communication)
• Identify any sales management tools you need, including technology like a CRM system
• Perform thorough research on the competition and current and historical market trends
• Study team sales reports to identify collective and individual strengths and weaknesses
• Observe and record the day-to-day operations of team members
• Implement at least one small change based on feedback from the team
• Identify skills gaps or areas of growth, both individually and team-wide
• Set new SMART goals for the team based on analysis and sales reports
• Make at least one small change to support the team
• Continue collecting and analyzing data
• Meet 1:1 with team members to offer and solicit feedback 
• Create a strategy for new training / coaching
• Collect data and run analysis on how your new strategy could generate more revenue
• Create a structured schedule that implements any changes

New Sales Territory

This 30-60-90 day sales plan example is perfect for a sales team that’s entering into a new sales territory.

• Define the market/trends of the new sales territory 
• Learn about the competition in the new territory, local or otherwise
• Study and understand the demographics of the new territory
• Identify ways to tweak your sales strategies based on demographics
• Perform a SWOT analysis to determine viability 
• Build the ICP and buyer personas for the new territory
• Identify the most profitable accounts in the new territory
• Create SMART sales goals
• Decide which KPIs to focus on and design a system for tracking and recording them
• Generate new leads
• Ask for feedback from team members, prospects, and customers
• Implement feedback as you optimize your process
• Outline your sales forecast for the next quarter/remainder of the year
• Create a sales process and workflows that align with your goals and forecast

Have you created and/or followed a 30-60-90 day sales plan before? How did it improve your sales process ? Would onboarding have been more challenging without one?

Tip: Looking for more sales plan templates? Grab them here –> 13 Sales Plan Templates .

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Sales VP Compensation – Sales Plan or Executive Plan?

by Donya Rose | Sales Comp Answers

Should the head of Sales be on a sales compensation plan or an executive compensation plan? The right design for the VP of Sales’ compensation structure may be 100% sales-focused, 100% focused on overall business results or a combination of the two.

Deciding on the Type of Compensation Plan for Sales Executives

Consider which of the following best describe the role of the sales executive in your business:

• Sales focused: The sales executive is primarily accountable for sales results, spending most of their time focused on managing and coaching the sales team, developing sales and market strategy. The sales executive may also sit on the leadership team for the business but always focused primarily on the contribution of the Sales function to overall business results.
• Business focused: The sales executive has a substantial role in the running of the business, with a strong influence over operational and investment decisions. In this case, the day-to-day oversight of the Sales team is handled by a strong Sales leadership team (or single leader) reporting to the Sales executive and fulfilling the roles listed in the Sales focused case above.
• Blended : The sales executive role is a blend of the two above, with up to 80% of their time focused on the Sales function, but at least 20% of their time focused on the overall management of the business.

Compensating the Sales Focused Sales Executive

This is the most typical role for a top sales leader, and so the most typical VP of Sales compensation structure is aligned with this role type. In this case, it’s important to have the sales executive measured similarly to their sales team. So, if the sales team’s primary measure is Revenue, then the sales executive should also have significant variable pay based on Revenue. Measuring the sales executive on the same measure their team has is important for alignment, and the individual contributor salespeople like knowing their leader is “winning” or “losing” along with them from a compensation perspective.

In addition to measuring the sales executive on the same core measure as the individual contributors on their team (Revenue, Margin, Bookings, etc.), it’s also reasonable to hold the sales executive accountable for measures directly influenced by their team that are a bit closer to aggregate business results.

Let’s explore some examples and options for compensation structure.

Contribution Margin  

A contribution margin is generally defined as [Revenue] – [Cost of Goods at Standard] – [Directly Controllable Sales Operating Expense]. And that last one generally includes sales compensation and the expenses directly incurred by the sales team like travel and entertainment and possibly samples or other similar items. This measure keeps the sales leader focused on delivering the sales results needed affordably, and on continuing to increase the sales production per sales person and per compensation dollar spent.

Expense-to-Sales Ratio

Expense-to-Sales Ratio is a more direct measure of the sales efficiency noted above. For example, in businesses with a Margin measure as the primary metric for individual salespeople, this ratio might be calculated as [Directly Controllable Sales Operating Expense] / [Sold Margin Value].

“Linearity” is a word we’ve heard more and more recently, referring to the pace of sales through a year, quarter or month. The need to measure this comes from a tendency of sales teams to spike sales towards the end of a measurement period, especially in businesses where Booked Revenue is the primary measure (vs. Recognized Revenue).

In many cases it’s not reasonable to expect individual contributor sales people to sell evenly through the year, especially if the business is “lumpy” (each year made up of a relatively small number of large deals). But in this case it may be reasonable to expect the sales leader whose results are aggregated over several sales people to deliver a more consistent level of sales through the year.

If this is the case, there can be a measure in the sales leader plan weighted at (for example) 20% of the incentive at target, and paying:

• 8% if Q1 sales are at or above 90% of the Q1 goal
• 7% if Q2 year-to-date sales are at or above 90% of the Q2 year-to-date goal
• 5% if Q3 year-to-date sales are at or above 90% of the Q3 year-to-date goal

Coaching Effectiveness

Coaching Effectiveness measure reward the sales leader based on the number of sales people meeting or exceeding their goal for the year. This measure provides an incentive to coach and manage all members of the sales team, not just focus on the top producers to drive overall results. This coaching may represent a bit of an “investment” for the sales leader in the current year but should pay returns in the future via more capable a productive selling across the entire team.

While each of these additional sales executive measures may be valuable for a particular business, remember the key principle that sales compensation plans are meant to focus effort, so it’s important to select a small number (three or fewer) measures focused on the most important results for the business.

Compensating the Business Focused Sales Executive

This type of role for a top sales executive is relatively rare, but it does occur, especially in businesses in which selling is a key competitive differentiator. If the top sales executive spends most of their time on the overall business then it is most likely appropriate to include the same measures that you’d find in the sales compensation plans for the rest of the executive team, placing them on the company’s executive compensation plan, including both a short-term incentive component based and long-term rewards like equity-based incentives. In this case, the sales executive will be rewarded for aligning the efforts of the sales team to contribute to the overall business results that the CEO and others of the executives are working to produce.

Compensating the Blended Sales and Business Focused Sales Executive

After the Sales-focused type of role, this is the most common. Here the sales executive’s compensation is generally a blend of a sales-type plan and an executive sales plan. The challenge in this situation is to keep the number of measures to a minimum so that the plan doesn’t end up with 6 – 8 measures, each of which has relatively little value to the sales executive.

In this case, consider how much time the sales executive is expected to spend managing the sales team vs. participating in the overall management of the business. The split here usually ranges from 70/30 to 80/20.

As an example, let’s assume a 70/30 split:

• The recommendation would be to put a 70% weight on the sales-type measures and a 30% weight on the executive-type measures.
• With 70% on the sales side, it may be practical to include both the primary sales measure (at 50%, for example) and a sales leadership measure from the list above (at 20%, for example).
• Then the remaining 30% could be based on a single measure from the executive plan (EBITDA, for example) or on the aggregate payout level of the full executive plan across all of its measures.

Final Thoughts

Compensation supports focus and provides a “scorecard” to let people know how they’re doing against expectations. So the first step is always to be clear about the business objective for the plan – what does “better” look like in terms of the contribution of the sales executive. The next step is to be clear about the key accountabilities of the role. And finally consider sales compensation options that support the focus and results needed by the business.

Donya Rose, CSCP,  is Managing Principal of The Cygnal Group. She is a recognized expert in sales compensation plan design, regularly speaking at conferences and writing published articles. She serves clients from F500 to growth-stage businesses, and advises WorldatWork on sales compensation hot topics and best practices.

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What Is a VP of Sales? An Overview of Responsibilities

Are you looking to hire a VP of Sales for your SaaS team? Not sure where to start or what a VP of Sales even means?

It can be daunting - after all, the person you hire will have significant responsibilities. Understanding the answer to those questions and finding the right candidate for the role is essential.

In this blog post, we'll explain what it takes to be a successful Vice President of Sales and offer strategies to find the perfect fit for your business.

With some knowledge and helpful tips from experts in recruitment, you can confidently move forward with hiring decisions!

• Table of contents
• What Is a Vice President of Sales?
• Do You Need a VP of Sales?
• What Makes a Great VP of Sales?

1. What does a VP of Sales do on a day-to-day basis? 

2. how do you measure the success of a vp of sales , 3. what essential qualities should you look for in a vp of sales.

A VP of Sales is a senior-level executive who oversees all sales and revenue generation activities in a business, including:

• Managing sales staff and guiding them in their day-to-day activities
• Developing and implementing sales strategies to achieve business goals
• Measuring and  analyzing data  to identify areas for improvement
• Working closely with marketing teams to develop highly effective sales materials and campaigns

Also, the VP of Sales needs to work well with other departments and have strong leadership skills.

For instance, they must effectively collaborate with the marketing team and lead their sales staff by example. Inspire them to do their best, and build relationships with key clients and industry partners.

A VP of Sales can be a great addition to your team if you're looking to grow your business and increase revenue. This doesn't always mean, though, that you need one.

Before hiring a VP of Sales, it's essential to consider whether your business needs this senior leadership level.

A few key factors to consider include:

• Your business's size and revenue potential . If you are a small startup, you may not need someone at this level of seniority yet.
• Your team and sales processes . If you already have a strong  sales team  with well-defined processes, you might be ready for a VP of Sales.
• The overall needs of your business .   A VP of Sales can be valuable to your team if you need help with strategy, management, leadership skills, and other high-level business functions.
• The size of your sales team . If it is extensive, it may be worth investing in a VP of Sales to manage and oversee them.

The best way to determine whether you need a VP of Sales is to evaluate your business needs. Consider your team's skills and capabilities and research candidates.

Several vital qualities and skills can make or break a VP of Sales.

Some of the most critical include:

• Strong sales skills and experience . A great VP of Sales will have extensive experience in revenue generation and sales, ideally with a proven track record of success.
• Strong leadership and management skills .   To be successful in this role, you need to be able to lead, motivate, and inspire your sales team.
• Effective communication skills .   A great VP of Sales can build strong, positive relationships with the rest of your team, clients, and other industry partners.
• Analytical thinking.  A great VP of Sales can analyze sales data, identify patterns and trends, and develop  effective growth strategies .

Besides, it's also essential to find a candidate who is a good fit for your business culture and values and the specific challenges you face.

Don't get caught up in the "perfect" candidate.

Instead, focus on finding someone who can bring value to your team and has the skills and experience needed to help you achieve your business goals.

• How Can You Hire a Great VP of Sales?

Due to the role's nature, finding a great VP of Sales can take time and effort.

One of the best ways to do so is to start with a strong foundation of pre-hired candidates and work your way up.

Some common qualities often looked for in a VP of Sales, such as sales experience and leadership skills, can be evaluated during an interview or hiring process. Others, such as analytical thinking and communication skills, are not so easily assessed.

To find the best candidates, consider partnering with a recruiting firm or other hiring resources specializing in VP of Sales recruiting.

These firms will have extensive experience and knowledge when it comes to finding the 'best' candidates and can meet with the best job seeker.

The recruiting specialists are also well-equipped to review your job listing and support you in crafting a compelling message to help attract top talent.

Hiring ideas

• Engaging in a targeted job advertising campaign to reach the most relevant candidates.  This might include posting job boards and social media listings and working with other industry partners to share your job posting.
• Establishing a referral program for your existing team to help find and refer potential candidates.  This can be a great way to tap into the hidden job market and help build a network of people you can rely on to provide quality referrals.
• Utilizing recruiting software or other online tools to help identify and connect with potential candidates.  This can include sourcing platforms, resume databases, and other online job boards.
• Attending industry conferences and events to network with potential candidates.  This can be a great way to meet people face-to-face and make connections that could lead to valuable referrals or job postings.
• Offering a competitive compensation package and other benefits.  This is important for attracting top talent and can help to set your business apart from others in the same industry.
• VP of Sales FAQs

Now that you know what a VP of Sales does and how to find and hire a great one for your business, here are some common questions about the role.

A VP of Sales is responsible for leading and managing the sales team, including setting sales targets, developing sales strategies, and providing ongoing support and guidance to the sales team.

VPs of sales might also oversee marketing, client relations, and other aspects of the sales process. However, they may delegate these tasks to other team members or specialists.

This will depend on your business and the goals that you want to achieve. Standard metrics often used to evaluate a VP of Sales include revenue growth, marketing conversion rates, customer retention rates, and employee turnover.

To determine whether your VP of Sales is successful. You should constantly evaluate these metrics and look for ways to improve them. 

Some strategies you can use include providing regular feedback, establishing clear goals and KPIs, and conducting regular performance reviews.

Some key traits that indicate whether a candidate is a good fit for the role of VP of Sales include:

• Sales experience
• Leadership skills
• Strong communication and negotiation skills
• Analytical thinking
• Strong work ethic

You should also look for candidates who are motivated, driven to succeed, and able to work well independently as well as in a team environment. Additionally, it's essential to find candidates comfortable with change and driven to learn and improve continuously.

If you're looking for a high-performing VP of Sales who can help take your business to the next level, be selective and take the time to find the right person for the job.

The key to a successful VP of Sales role is finding someone who can lead and manage your sales team while meeting your business's needs and helping you achieve your goals.

So if you're ready to start the search, consider focusing on candidates with strong sales and leadership experience and the appropriate skills and qualities to help your business thrive.

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