Looking for a sales VP? Hire steak, not sizzle

By Mario Laudi on October 06, 2006 - Comments (View)
Mario shares a few hints on hiring a VP of Sales. Startups can't afford to drop the ball in any area, but they REALLY can't drop it when it comes to sales.


If it’s true that 20 per cent of the sellers drive 80 per cent of revenue, then most companies hire the wrong guy on four out of five tries.

For an early-stage company hiring the right guy to carry the bag is risky business.
Most startups can’t afford to spread the risk by employing an entire team. Moreover, the binary nature of selling makes it so you don’t get part marks for effort. You either win, or you lose.

So what’s an early-stage company supposed to do when so much rides on one member of your team? How do you know a good VP of Sales when you see one? What about that well-dressed, handsome rep, will he hunt and close good deals? You’ll never really know until you hire him.

But, you might want to ask for T4s or W2s.

Don’t get me wrong. Income history is not a perfect metric. Even great sales executives have bad years. It can take up to six months to figure out that no one will ever buy your new product or solution. Depending on the timing, taking the wrong job can impact two years of income.

Conversely, some account executives rack up big numbers because they were in the right place at the right time. The T4 or W2 is a good indicator, but not a substitute for in-depth, metric-based interviews.

Essentially, if a VP or sales rep has never made big money before, he certainly won’t do it with a company that’s still building traction. It’s not the kind of bet a prudent company should make. Don’t be swayed by the sizzle of a slick sales exec. Let those guys go sell for the competition.

Look for steak. Ideally, medium-rare.

Comments

Comment Dummy Vote-kill Vote-no Vote-yes Comment Dummy
aug 24 2007 09:29
-8 Reputation Points

As a seasoned (25 yrs) sales performer and executive leader I could not agree more. Hiring mission critical launch sales personnel should be based on real proven performance (with the metrics that Mario is very fond of) and also the foundation reasons that the sales person succeeded. In early stage companies the income history will indicate success, but not the complex combination of product, market readiness, and the multi-talented sales pioneer profile that likely led to that success. Interviewing for proof of income gets you a candidate…...I interviewing for:
- YoY consistent results when changing companies, solutions and markets, motivation, skills, drive, attitude, work ethic, adversity quotient, and adaptability. This seems to then yeild players who can survive and lead growth in the early stages. In my humble opinion :-)

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