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I can always tell when someone is hiring sales people for the first time.
They typically make 3 rookie mistakes:
1) Hiring a VP as their First Salesperson
Good VPs want to build teams, manage them, set strategy, and help with the most important deals.
Good VPs DO NOT want to do the dirty out bounding, follow-ups, contract redlines, etc…that come with early stage sales.
If you need help building some operations or strategy, then hire a good sales consultant. They’re going to help you avoid some very costly mistakes.
And make sure your first hire is a full cycle AE that can prospect and close.
2) Complicated Commission Plans
I’ve built dozens of sales compensation plans. I used to worry about every scenario…how do I protect the company? How do I protect the reps?
The plans got complex. It cost the company company countless hours of expensive time trying to calculate every detail and manage the one off scenarios with the team.
Don’t do this.
Instead, keep it simple.
- Your first plans should not include escalators, just flat rates
For SDRs specifically:
- Start with a commission for each meeting held and try to add a commission for each deal closed (if you can)
- In the beginning, don’t penalize them for bad meetings set, but monitor it closely. Eventually you can add variable that measures the % of their meetings set that AEs mark as Sales Qualified Opps
3) Missing Obvious Red Flags in the Hiring Process
A bad first hire will cost your executives a lot of time and a lot of actual money for the company.
At a bare minimum, your first hires should be excellent with the small details around communication — good formatting, proactive, professional.
You’re hiring sales because you need to get it off your plate. So while you’re juggling everything else, you don’t have time to train someone on the fundamentals of client communication.
How they communicate with you during the interview process is a reflection of how they communicate with customers.
Even if the candidate has good logos on their resume, don’t drop your standards on communication.
The reason this is top of mind?
We've been hiring a bunch of overseas SDRs for our clients and I've been having these exact conversations with founders and early stage managers.
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