Here I reiterate and expand upon my\u00a0answer.![\"\"](\"https:\/\/media.peaksalesrecruiting.com\/wp-content\/uploads\/2014\/08\/4588844527_f6960c0c41_o-608x405-1-300x200.jpg?strip=all\")
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Having spent the last 25 years launching my own companies and working with start-ups, I understand the pressure to hire sales people that can accelerate the acquisition of customers and infusion of cash, but I also have\u00a0first-hand exposure to the problems of hiring sales people, particularly in the earliest days of the venture, so I generally advise against doing so. There are a few reasons:<\/p>\n
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- Cost Prohibitive<\/strong> \u2013 Reliable sales people and those that can consistently sell and convert prospects into customers (the only ones that should be considered for\u00a0hire) are highly sought after by employers who can pay them well, but unfortunately unfunded and bootstrapping start-ups, \u00a0typically can\u2019t afford to\u00a0compete for these sales people.\u00a0I have worked with several startups where the prospect of paying a $75k base salary plus commissions, or even a $4k monthly draw would be problematic. The default response is often to hire sales people with spotty track records who will accept less base salary. Unfortunately,\u00a0this typically doesn\u2019t result in the sales person magically becoming a superstar and achieving the desired sales goals.<\/li>\n
- The Right Mix of Skills and DNA<\/strong> \u2013 Selling for a startup is very different than selling for an established company where the brand is well known, the product is stable and established, there is a customer base for references, and there is sales infrastructure\u00a0and support for the sales person. In many of the startups I have been involved with, the product\u00a0offering, value proposition, and target\u00a0market have evolved quickly, and there have been many start-stops and product challenges. Not all sales people, even the great ones,\u00a0have the predisposition to be successful in a this kind of an environment. It takes a\u00a0rare mix\u00a0of skills\u00a0and DNA\/personality traits along with the critical domain knowledge for someone to be a successful sales person in a startup. Startups often hire the wrong sales person, who in turn achieves disappointing results (after several unsuccessful tries at recruiting sales reps, many of these companies come to Peak<\/a> for help).<\/li>\n
- Care and Feeding<\/strong>\u00a0\u2013 Many start-up execs and founders, under great pressure to generate sales, have the\u00a0expectation\u00a0that a good sales person will be able to come in and simply\u00a0produce sales. Not much thought is given to the sales support and\/or management a sales\u00a0rep might need and management\u2019s time is often spent fighting fires. It is not unusual for there to be\u00a0a \u201csink or swim\u201d culture, where the rep is expected to figure things out and sell, but this presents a major challenge for\u00a0most sales people who need to be managed in order to perform well. For more on this, see The Myth of The Self Managing Sales Rep.<\/a><\/li>\n
- Too Early<\/strong> \u2013 In some cases, there may not even be many or even any sales that validate the product, yet\u00a0the founders have\u00a0a lack of faith in their own sales abilities and\/or a feeling that they don\u2019t have time to sell, and want to hire a sales person that can bring on customers.\u00a0While it may be virtually impossible\u00a0to get\u00a0an established and successful sales person to accept the risks of coming into this kind of a situation, it may be even more difficult for them to actually produce the desired sales until the company is further along the path of launching and the direction has settled down. In my experience,\u00a0the founders need to be very involved in the selling activity (for the sake of having an intimate understanding\u00a0of what does and does not work) and customers will\u00a0only want to deal with the founders who\u00a0have extensive domain knowledge and are\u00a0very closely tied to the company\u2019s offering and direction.<\/li>\n<\/ol>\n
That said, if a startup venture\u2019s\u00a0plan is still to hire a salesperson, my advice is to find someone who has demonstrated sales success in startups and is excited by the early stage in company building.\u00a0Create a compensation plan heavily leveraged on sales results but pay a fair base to attract an established sales person.\u00a0Unless the startup is\u00a0in an industry where 100% commission is a common practice, I would recommend against a $0 base as this may creates the false impression that the\u00a0hire isn\u2019t passing time with one company while looking for another job with a better\u00a0compensation plan. The rep will need to be 100% focussed on selling for the startup in order to have any success. Don\u2019t sugarcoat the challenge, it will be tough, but certainly sell the vision and opportunity to be part of a growth story, which will be more likely to attract the right type of DNA.<\/p>\n
A sales person is not a magic bullet in a startup, although I wish that were the case. Instead, the timing and expectations have to be in line with what the right sales person can realistically contribute.<\/p>\n
Here are some additional posts related to\u00a0the topic of selling in a startup that I would recommend any entrepreneur to read when they have a few minutes:
\nTip: Don\u2019t Stop Selling Once You Hire Your First Sales Rep.<\/a>
\nAn Intro to Hiring Sales Reps for Startups.<\/a>
\nThe 5 Types of Reps Common to Startups.<\/a><\/p>\nTo your success!<\/p>\n
Photo Credit: benarent via Compfight cc<\/p>\n
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<\/p>\n\nRelated posts<\/h3>\n
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\n\n<\/div>\nThe 8 Human Capital Metrics Every Sales Manager Needs to Track<\/div>\n<\/div>\n\n<\/div>\nWhat Every Great VP Sales Wants in a Job<\/div>\n<\/div>\n\n<\/div>\nHow to Hire A Salesperson Who Truly Delivers<\/div>\n<\/div>\n<\/div>\n<\/p>\n
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\n - The Right Mix of Skills and DNA<\/strong> \u2013 Selling for a startup is very different than selling for an established company where the brand is well known, the product is stable and established, there is a customer base for references, and there is sales infrastructure\u00a0and support for the sales person. In many of the startups I have been involved with, the product\u00a0offering, value proposition, and target\u00a0market have evolved quickly, and there have been many start-stops and product challenges. Not all sales people, even the great ones,\u00a0have the predisposition to be successful in a this kind of an environment. It takes a\u00a0rare mix\u00a0of skills\u00a0and DNA\/personality traits along with the critical domain knowledge for someone to be a successful sales person in a startup. Startups often hire the wrong sales person, who in turn achieves disappointing results (after several unsuccessful tries at recruiting sales reps, many of these companies come to Peak<\/a> for help).<\/li>\n
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