The VP of Sales Decision: Timing, Profile, and Execution
Your first VP of Sales hire is among the most consequential decisions you'll make. Here's a comprehensive guide to getting it right.
Editorial Team
Roles Insights · December 28, 2024
The decision of when and how to hire your first VP of Sales ranks among the most consequential choices a growing company will make. Execute well, and you accelerate into hypergrowth. Execute poorly, and you waste precious runway while your competitors pull ahead.
This guide synthesizes insights from dozens of successful (and unsuccessful) first VP of Sales hires to help you navigate this critical decision.
The Timing Question
### Signs You're Ready
You need a foundation of repeatable sales before you need someone to scale it. If founders are still the primary closers and the sales process isn't documented, you're likely not ready.
**Indicators of readiness:**
- **Repeatable revenue:** You've closed multiple deals following a similar pattern - **Defined ICP:** You can clearly articulate your ideal customer profile - **Documented process:** The sales motion is understood, even if not yet optimized - **Sales team existence:** You have at least 2-3 reps with demonstrated success - **Product-market fit signals:** Retention and expansion metrics suggest genuine product-market fit
### Signs You're Not Ready
Hiring a VP of Sales too early is one of the most common and costly mistakes:
- **Still founder-led sales:** If only founders can close deals, you have a process problem, not a scaling problem - **No sales playbook:** A VP of Sales should optimize a playbook, not create one from scratch - **Unproven reps:** If individual reps haven't succeeded, the issue may not be leadership - **Unclear market:** If you're still iterating on target market, it's too early
### The Danger of Premature Hiring
Hiring too early creates multiple problems:
- **Expensive iteration:** You're paying VP-level compensation for founder-stage experimentation - **Wrong profile:** The skills needed to build from zero differ from those needed to scale - **Credibility damage:** A failed senior hire affects team morale and future recruiting - **Runway consumption:** Senior hires are expensive; premature ones doubly so
The Right Profile
### Builder vs. Scaler
Your first VP of Sales should be a builder, not a scaler. They need to be capable of:
- Personally closing deals (at least initially) - Building process and infrastructure from limited foundations - Recruiting and developing a team - Adapting rapidly to market feedback - Operating with startup-level resources
The VP of Sales who succeeded at a large company with established playbooks, plentiful resources, and strong brand recognition may struggle in an environment requiring scrappiness and first-principles thinking.
### Ideal Experience Pattern
Look for candidates who have:
- Operated at a company of similar stage (or one stage ahead) - Built sales teams from small to medium scale (e.g., 5 to 30 reps) - Personally carried a quota in recent history - Sold products with similar complexity and sales cycle - Demonstrated success in similar market segments
### Warning Signs in Candidates
Be cautious of candidates who:
- Haven't personally sold in many years - Have only worked at large, established companies - Can't articulate specific tactics and approaches they'll employ - Focus primarily on team and resources they'll need - Show limited curiosity about your specific market and product
The Interview Process
### Assessing Sales Ability
Your first VP of Sales must be able to sell. Evaluate this through:
- **Role-play scenarios:** Watch them sell your product (or a proxy) in real-time - **Deal archaeology:** Deep-dive on specific deals they've closed—how did they find the opportunity, develop it, overcome obstacles, and close? - **Reference sell:** Are their references genuinely enthusiastic, or merely polite?
### Assessing Building Ability
They must also be able to build. Explore:
- **Process creation:** Have them walk through how they'd build your sales process - **Hiring approach:** How do they identify and evaluate sales talent? - **Ramp methodology:** How do they get new reps to productivity? - **Failure analysis:** How do they diagnose and address underperformance?
### Assessing Culture Fit
Sales leadership sets cultural tone. Ensure alignment on:
- **Selling philosophy:** Transactional vs. consultative, aggressive vs. relationship-focused - **Data orientation:** How do they use metrics in decision-making? - **Cross-functional style:** How do they collaborate with marketing, product, customer success? - **Communication approach:** How do they share information up, down, and across?
The Compensation Package
### Market Expectations
First VP of Sales compensation typically includes:
- **Base salary:** $200-350K depending on company stage and location - **Variable compensation:** 50-100% of base, tied to team performance - **Equity:** 0.5-1.5% for Series A/B stage companies - **Accelerators:** Additional compensation for exceeding targets
### Structuring for Alignment
Structure compensation to align incentives:
- **Ramp period:** Reduced quota expectations during initial months - **Team-based metrics:** Variable tied to team performance, not just personal deals - **Quality indicators:** Include retention or expansion metrics, not just new bookings - **Cliff provisions:** Ensure equity vesting has meaningful retention effect
Setting Up for Success
### The First 90 Days
Work with your new VP of Sales to establish:
- **Learning priorities:** What must they understand about market, product, and team? - **Quick wins:** Where can they demonstrate early impact? - **Assessment period:** How will they evaluate existing team and process? - **Hiring timeline:** When and how will they begin expanding the team?
### Ongoing Support
Your first VP of Sales will need:
- **Executive access:** Regular time with CEO and leadership team - **Cross-functional relationships:** Introductions and support building relationships with marketing, product, finance - **Board visibility:** Opportunity to present to and build credibility with board - **Resource commitment:** Clear understanding of budget and hiring capacity
### Warning Signs Post-Hire
Watch for early indicators of poor fit:
- **Blame patterns:** Attributing all challenges to product, marketing, or inherited team - **Hiring delays:** Slow progress on building team - **Process resistance:** Unwillingness to document and systematize - **Rep turnover:** Departure of previously successful reps - **Pipeline stagnation:** No improvement in leading indicators
The Decision Framework
Ultimately, the decision to hire a VP of Sales comes down to three questions:
1. **Do we have a repeatable sales motion to scale?** If yes, proceed. If no, founders should continue iterating.
2. **Can we identify a candidate with the right builder profile?** If yes, proceed. If only scaler profiles are available, wait.
3. **Are we prepared to support their success?** If yes, proceed. If organizational readiness is lacking, address that first.
Get these questions right, and your first VP of Sales hire becomes a transformative accelerant for your business.