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Sales Team Building: First Rep to 10-Person Team

Sarah MitchellVerified Expert

Editor in Chief15+ years experience

Sarah Mitchell is a seasoned business strategist with over 15 years of experience in entrepreneurship and business development. She holds an MBA from Stanford Graduate School of Business and has founded three successful startups. Sarah specializes in growth strategies, business scaling, and startup funding.

287 articlesMBA, Stanford Graduate School of Business

Sales Team Building: First Rep to 10-Person Team

You've proven product-market fit. Your sales process generates consistent revenue. Now you face the hardest transition in company building: scaling through people instead of founder hustle.

Hire wrong, and you burn cash while deals stall. Compensate poorly, and top performers leave for competitors. Structure badly, and your team drowns in chaos.

This guide gives you the exact frameworks we use to build sales teams for 200+ startups. From your first sales hire through your tenth team member, you'll know exactly what to do—and what to avoid.


The First Sales Hire: Your Most Critical Decision

Your first sales hire isn't just another employee. They're your sales DNA. They establish your culture, prove your process works without you, and determine whether you can scale.

Hunter vs. Farmer: Choose Based on Your Stage

The Hunter Profile (Best for $0-1M ARR)

Hunters thrive in undefined environments. They prospect aggressively, close fast, and don't need hand-holding.

Hunter Characteristics:

  • Prospects 50+ accounts weekly without complaint
  • Closes 20-30% of qualified opportunities
  • Figures out processes independently
  • Comfortable with 80% commission-based comp
  • Prior experience in early-stage startups

When to Hire a Hunter:

  • You have fewer than 50 customers
  • Founder still does most selling
  • No established playbook exists
  • Deal size is $10K-$50K annually
  • Sales cycle is under 60 days

Real Example: Stripe's first sales hire was a hunter. James joined when Stripe had 10 customers and no sales process. He prospected 300 companies in his first month, closed 12 deals, and established the outbound motion that fueled Stripe's growth to $1M ARR.

The Farmer Profile (Best for $1M-5M ARR)

Farmers excel at expansion and retention. They build relationships, identify upsell opportunities, and maintain accounts long-term.

Farmer Characteristics:

  • Manages 50-100 accounts effectively
  • Achieves 110-130% net revenue retention
  • Builds multi-threaded relationships
  • Comfortable with 50-70% base salary
  • Prior experience in account management or customer success

When to Hire a Farmer:

  • You have 50+ existing customers
  • Expansion revenue exceeds 20% of total
  • Customer success needs sales skills
  • Deal size is $25K-$100K with multi-year contracts
  • Sales cycle involves implementation and adoption

Real Example: Datadog's first customer success hire was a farmer profile. Sarah managed 80 accounts and grew average contract value 45% in her first year by identifying monitoring expansion opportunities and building technical champions.

The First Hire Scorecard

Score candidates on these criteria. Require 80+ points to make an offer.

| Criteria | Weight | Scoring Guide | |----------|--------|---------------| | Early-Stage Experience | 20 | 10: Built sales at startup 0-10 people, 5: Startup experience, 0: Only big company | | Domain Expertise | 15 | 10: Sold to your ICP for 3+ years, 5: Adjacent market, 0: Unrelated | | Track Record | 20 | 10: Consistent 120%+ quota attainment, 5: 100% attainment, 0: Below 100% | | Process Orientation | 15 | 10: Documents and improves process, 5: Follows process, 0: Purely intuitive | | Cultural Fit | 20 | 10: Embodies your values, 5: Good fit, 0: Values misalignment | | Coachability | 10 | 10: Seeks feedback and adapts, 5: Accepts feedback, 0: Defensive | | Total | 100 | Minimum 80 to hire |

First Hire Compensation Plan

Your first sales hire takes massive risk joining an unproven startup. Compensate them accordingly.

Recommended Structure:

| Component | Amount | Structure | |-----------|--------|-----------| | Base Salary | $80,000-$120,000 | Monthly, guaranteed | | Commission | $40,000-$80,000 | 10-15% of ARR closed | | Accelerator | Uncapped | 1.5× rate above 100% quota | | Equity | 0.1-0.5% | 4-year vest, 1-year cliff |

On-Target Earnings (OTE): $120,000-$200,000

Real Example: Figma's first sales hire received $110K base, $55K commission at 12% rate, and 0.25% equity. He closed $450K ARR in year one, earning $164K total comp—slightly above market but justified by results. The equity, now worth $12M+, kept him through year five.

Interview Process for First Hire

Use this 5-stage process to evaluate candidates thoroughly:

Stage 1: Phone Screen (30 minutes)

  • Startup experience and motivation
  • Quota attainment history
  • Compensation expectations
  • Pass Rate: 50%

Stage 2: Sales Simulation (60 minutes)

  • Cold call roleplay: 15-minute prospecting call
  • Discovery call roleplay: 30-minute needs analysis
  • Objection handling: 15-minute negotiation
  • Pass Rate: 40%

Stage 3: Founder Interview (45 minutes)

  • Cultural fit and values alignment
  • Questions about your product and market
  • Their sales philosophy
  • Pass Rate: 60%

Stage 4: Reference Calls (3 references)

  • Previous managers: Quota attainment verification
  • Colleagues: Collaboration and teamwork
  • Customers: Relationship quality
  • Pass Rate: 80%

Stage 5: Working Session (Half Day)

  • Shadow your sales process
  • Present 30-day plan
  • Meet 2-3 team members
  • Pass Rate: 70%

Overall Conversion: 3-5% of applicants receive offers


Sales Team Org Chart by Stage

Stage 1: $0-500K ARR (1-2 Reps)

Founder/CEO (Primary Seller)
        |
   Sales Rep #1
        |
   (Admin/Operations Support)

Structure: Founder sells 80%, rep sells 20%. Rep focuses on prospecting and early-stage deals.

Roles:

  • Founder: Closes large deals, sets process
  • Sales Rep: Prospects, qualifies, demos, closes SMB
  • (Optional) Operations: CRM management, reporting

Compensation:

  • Sales Rep: $80K-$120K base, $40K-$80K commission

Real Example: Notion ran with this structure through $400K ARR. Ivan, the CEO, closed all deals over $25K. The first sales rep handled inbound and deals under $20K. This let Ivan focus on product while validating that non-founders could sell.

Stage 2: $500K-2M ARR (2-4 Reps)

     VP Sales (Player-Coach)
      /          \
Sales Rep 1   Sales Rep 2
      \          /
     SDR (Shared)

Structure: VP Sales closes deals and manages 2-3 reps. Shared SDR supports prospecting.

Roles:

  • VP Sales: 50% selling, 50% management, process refinement
  • Sales Reps (2-3): Full-cycle closing
  • SDR (1): Prospecting, meeting booking

Compensation:

  • VP Sales: $130K-$180K base, $65K-$90K commission
  • Sales Rep: $90K-$130K base, $45K-$65K commission
  • SDR: $50K-$70K base, $15K-$25K commission

Real Example: Airtable hired a VP Sales at $800K ARR. Within 6 months, she built the team to 4 reps and implemented Salesforce. ARR grew to $2M in 12 months with this structure.

Stage 3: $2M-5M ARR (4-8 Reps)

        VP Sales
       /    |    \
  Manager  Manager  (Optional)
    /  \     /  \
  Rep Rep  Rep Rep
   \   /    \   /
    SDRs (2-3)

Structure: First-line managers own team performance. SDRs feed pipeline to AEs.

Roles:

  • VP Sales: Strategy, forecasting, executive deals
  • Managers (2): 20% selling, 80% coaching, hiring
  • Account Executives (4-6): Full-cycle closing
  • SDRs (2-3): Prospecting and qualification

Compensation:

  • VP Sales: $150K-$200K base, $75K-$100K commission
  • Manager: $120K-$160K base, $40K-$60K commission
  • AE: $100K-$140K base, $50K-$70K commission
  • SDR: $55K-$75K base, $20K-$30K commission

Real Example: Figma scaled from $2M to $5M ARR with this structure. Two managers each led 3 AEs. SDRs prospected for specific territories. VP Sales focused on enterprise deals over $100K and strategic partnerships.

Stage 4: $5M-15M ARR (8-15 Reps)

           VP Sales
          /        \
   Director        Director
    (Enterprise)   (Mid-Market)
       |              |
   Managers        Managers
    (2-3)           (2-3)
       |              |
    AEs (6-10)     AEs (4-8)
       |              |
   SDRs (3-5)     SDRs (2-4)

Structure: Segmented teams by deal size. Specialized roles emerge.

Roles:

  • VP Sales: Strategy, board reporting, major partnerships
  • Directors (2): Segment ownership, forecast accuracy
  • Managers (4-6): Team development, deal coaching
  • AEs (10-18): Segmented by territory or vertical
  • SDRs (5-9): Segmented by AE assignment
  • Sales Operations (1-2): Systems, analytics, enablement

Compensation:

  • Director: $160K-$220K base, $80K-$110K commission
  • Manager: $130K-$170K base, $45K-$65K commission
  • AE: $110K-$150K base, $55K-$75K commission
  • SDR: $60K-$80K base, $25K-$35K commission

Sales Compensation Plans That Work

Compensation drives behavior. Structure your plans to reward the outcomes that matter.

Account Executive Compensation Structure

Standard AE Plan (Annual Contracts $15K-$50K):

| Component | Amount | Structure | Rationale | |-----------|--------|-----------|-----------| | Base Salary | $100,000 | Monthly | Provides stability, attracts talent | | Commission | $50,000 | 10% of ARR | Rewards closing, aligns with revenue | | Quota | $500,000 ARR | Annual | 5:1 ratio of quota to OTE | | Accelerator | 15% | Above 100% quota | Drives over-performance | | OTE | $150,000 | | Market competitive |

Accelerator Structure:

| Attainment | Commission Rate | Example Earnings on $600K | |------------|----------------|---------------------------| | 0-50% | 8% | $24,000 | | 50-100% | 10% | $50,000 | | 100-125% | 15% | $37,500 | | 125%+ | 20% | Uncapped |

Real Example: Zendesk's AE comp plan uses 50/50 base/commission split with accelerators at 125% and 150%. Top performers earning $250K+ annually drive 40% of company revenue from 20% of the team.

SDR Compensation Structure

Standard SDR Plan:

| Component | Amount | Structure | Rationale | |-----------|--------|-----------|-----------| | Base Salary | $60,000 | Monthly | Entry-level stability | | Commission | $20,000 | $200 per SQL | Rewards quality meetings | | Activity Bonus | $5,000 | Quarterly | Incentivizes volume | | OTE | $85,000 | | Progression to AE path |

Activity Bonus Tiers:

| Meetings Booked | Quarterly Bonus | |-----------------|-----------------| | 20+ | $1,250 | | 25+ | $2,500 | | 30+ | $5,000 |

Real Example: Outreach.io's SDR team books 25+ meetings per quarter on average. Top SDRs earn $95K+ and promote to AE within 18 months. The activity bonus prevents "cherry-picking" easy accounts.

Manager Compensation Structure

Standard Sales Manager Plan:

| Component | Amount | Structure | Rationale | |-----------|--------|-----------|-----------| | Base Salary | $140,000 | Monthly | Management stability | | Commission | $50,000 | Team quota attainment | Rewards team success | | Individual Close | Variable | Personal deals | Keeps skills sharp | | OTE | $190,000 | | Competitive for role |

Team Commission Structure:

| Team Attainment | Manager Commission Rate | |-----------------|------------------------| | 80-90% | 2% of team bookings | | 90-100% | 3% of team bookings | | 100-110% | 4% of team bookings | | 110%+ | 5% of team bookings |

Real Example: A manager at HubSpot leading 6 AEs with $3M team quota earns $50K commission at 100% attainment. If team hits 110%, she earns $66K commission. This structure prioritizes team success over individual heroics.

Compensation Plan Design Principles

1. The 50/50 Rule

For AEs, target 50% base and 50% commission at quota. This balances stability with performance motivation.

| Role Type | Base % | Commission % | |-----------|--------|--------------| | SDR | 75% | 25% | | AE (Mid-Market) | 50% | 50% | | AE (Enterprise) | 60% | 40% | | Manager | 70% | 30% |

2. Quota Setting Formula

Set quotas using this calculation:

Quota = (OTE × 4 to 6) / Commission Rate

Example:

  • OTE: $150,000
  • Commission rate: 10%
  • Quota multiplier: 5×
  • Quota: $750,000 ARR

3. Pay Mix by Deal Size

Larger deals require longer cycles and more relationship building. Increase base for enterprise roles.

| Deal Size | Base % | Commission % | Quota | |-----------|--------|--------------|-------| | $5K-$15K | 50% | 50% | $600K | | $15K-$50K | 50% | 50% | $750K | | $50K-$150K | 60% | 40% | $1M | | $150K+ | 65% | 35% | $1.5M |

4. Clawbacks and Protections

Protect the business while motivating reps:

  • Clawback Period: 6 months for churned accounts
  • New Logo Bonus: Extra 2% for first-time customers
  • Multi-Year Bonus: Extra 3% for 2+ year contracts
  • Payment Timing: Commission paid on signed contract, not cash receipt

Hiring Framework: Finding Great Salespeople

Great salespeople aren't found—they're identified through rigorous process. Use this framework to hire top performers consistently.

The Sales Hiring Scorecard

Score every candidate on these 7 dimensions. Minimum 75/100 to proceed.

| Dimension | Weight | What to Look For | Red Flags | |-----------|--------|-----------------|-----------| | Intelligence | 15 | Quick thinking, pattern recognition | Slow to respond, needs repetition | | Work Ethic | 15 | Evidence of sustained effort | Job hopping, gaps without growth | | Track Record | 20 | Consistent quota over-attainment | Excuses for past performance | | Coachability | 15 | Seeks feedback, adapts quickly | Defensive, "I know best" attitude | | Curiosity | 10 | Asks deep questions about your business | Surface-level interest | | Grit | 15 | Persistence through rejection | Gives up easily, blames externals | | Values Fit | 10 | Aligns with company culture | Arrogance, self over team |

Interview Stages

Stage 1: Resume Screen (5 minutes)

Green Flags:

  • 2+ years at each company (stability)
  • Progressively larger quotas
  • Quantified achievements ("Closed $2M ARR")
  • Startup experience

Red Flags:

  • 6+ companies in 10 years
  • No quota attainment numbers
  • Only big company experience
  • Employment gaps without explanation

Pass Rate: 20%

Stage 2: Phone Screen (30 minutes)

Questions:

  1. "Walk me through your sales process at [company]."
  2. "What was your quota? What did you actually hit?"
  3. "Tell me about a deal you lost that you should have won."
  4. "Why do you want to join a startup?"
  5. "What questions do you have for me?"

Evaluation: Look for process orientation, accountability for results, and genuine curiosity.

Pass Rate: 40%

Stage 3: Skills Assessment (2 hours)

Cold Email Writing (30 min):

  • Write 3 cold emails to prospects in our ICP
  • We'll provide company and contact information

Discovery Call Simulation (45 min):

  • Roleplay discovery with our product
  • Evaluate questioning technique and listening

Objection Handling (30 min):

  • 5 common objections, real-time responses
  • Evaluate composure and technique

Deal Review (15 min):

  • Present a past deal from their history
  • Evaluate storytelling and business acumen

Pass Rate: 35%

Stage 4: Panel Interview (2 hours)

Interviewers: Sales leader, product leader, peer rep

Format:

  • 45 min with sales leader (strategy and philosophy)
  • 45 min with product leader (technical aptitude)
  • 30 min with peer rep (cultural fit)

Pass Rate: 60%

Stage 5: Reference Calls (3 calls)

Manager Reference:

  • "What was [name]'s quota attainment?"
  • "Why did they leave?"
  • "Would you hire them again?"
  • "What was their biggest weakness?"

Peer Reference:

  • "How did they collaborate with the team?"
  • "What was their work style?"

Customer Reference:

  • "How was your buying experience?"
  • "Would you work with them again?"

Pass Rate: 85%

Stage 6: Offer and Close (1-2 days)

Move fast on offers. Top sales talent has multiple options.

Timeline:

  • Reference calls completed: Monday
  • Decision made: Tuesday
  • Offer extended: Wednesday
  • Response requested: Friday

Overall Conversion: 2-4% of applicants receive offers

The "Sell Me This Pen" Test (And Better Alternatives)

The famous "sell me this pen" test measures creativity under pressure but poorly predicts sales success. Use these alternatives instead:

Better Assessment 1: The 5-Minute Pitch

"You have 5 minutes to convince me to try our product. I'll be a skeptical prospect. Go."

What to Evaluate:

  • Do they ask questions first, or pitch immediately?
  • How do they handle interruption?
  • Do they pivot based on your reactions?

Better Assessment 2: The Objection Cascade

Present 5 objections in sequence without pause:

  1. "Too expensive"
  2. "Already using competitor"
  3. "No budget this year"
  4. "Need to ask my boss"
  5. "Not a priority right now"

What to Evaluate:

  • Do they get flustered or stay composed?
  • Do they move to next objection without resolving first?
  • Do they push too hard or give up too easily?

Better Assessment 3: The Discovery Demo

"I'm a VP of Engineering at a 200-person SaaS company. We're evaluating monitoring tools. Discovery me."

What to Evaluate:

  • Do they establish rapport before questioning?
  • Do they ask layered questions (situation → problem → implication)?
  • Do they take notes and reference earlier answers?

Onboarding and Training Framework

Great onboarding accelerates time-to-productivity and reduces early churn. Invest heavily in first 90 days.

The 90-Day Onboarding Roadmap

Week 1: Foundation

| Day | Activities | Deliverables | |-----|-----------|--------------| | 1 | Company intro, team meet-and-greets, systems setup | Email, Slack, CRM access | | 2 | Product deep dive, technical architecture | Product demo certification | | 3 | Market and ICP training, competitive landscape | ICP scorecard completion | | 4 | Sales process overview, methodology training | Process quiz passed | | 5 | Shadow 3 customer calls, debrief | Call notes and insights |

Week 2-3: Practice

| Week | Activities | Deliverables | |------|-----------|--------------| | 2 | Roleplay discovery calls, cold call practice | 5 recorded practice calls | | 2 | Demo certification, objection handling drills | Demo certification passed | | 3 | Prospecting bootcamp, email writing workshop | 50 prospecting touches | | 3 | Account research project, territory planning | Territory plan document |

Week 4-6: Supported Selling

| Week | Activities | Deliverables | |------|-----------|--------------| | 4 | Lead 5 discovery calls with manager shadow | 5 completed discovery calls | | 4 | Deliver 3 demos with feedback | 3 demo recordings reviewed | | 5 | Manage 5 opportunities, write proposals | 3 proposals sent | | 5 | Weekly pipeline review, deal coaching | Updated CRM, forecast | | 6 | Close first deal (supported) or advanced pipeline | $X ARR in pipeline |

Week 7-12: Independence

| Week | Activities | Deliverables | |------|-----------|--------------| | 7-8 | Independent selling with weekly check-ins | 10+ active opportunities | | 9-10 | Full pipeline ownership, quarterly planning | Accurate forecast | | 11-12 | First solo close, 90-day review | Closed deal, review complete |

Onboarding Metrics

Track these to ensure reps ramp effectively:

| Metric | Target 30 Days | Target 60 Days | Target 90 Days | |--------|---------------|---------------|---------------| | Product Certification | 100% | 100% | 100% | | Prospecting Touches | 200+ | 400+ | 600+ | | Discovery Calls | 5+ | 15+ | 25+ | | Demos Delivered | 2+ | 8+ | 15+ | | Pipeline Created | $100K | $300K | $500K | | Closed Won | $0 | $50K+ | $150K+ |

Real Example: Gong.io's onboarding program achieves 90% rep retention through first year. New hires complete 60 hours of training in 30 days, including 20 hours of roleplay. Time to first close averages 45 days, and 80% of reps hit quota by month 4.

Continuous Training Program

Onboarding isn't the end—it's the beginning. Build ongoing development:

Weekly:

  • 1 hour: Call review session (team listens to 2 calls)
  • 30 min: Product update training
  • 15 min: Competitive intelligence share

Monthly:

  • 4 hours: Skills workshop (objection handling, closing, etc.)
  • 2 hours: Win/loss analysis review
  • 1 hour: Quota attainment and pipeline review

Quarterly:

  • Full day: Sales kickoff (SKO) with training
  • Half day: Roleplay tournament
  • Individual: Career development planning

Common Hiring Mistakes to Avoid

Mistake 1: Hiring Big Company Reps Too Early

The Problem: Enterprise reps from Oracle or Salesforce struggle in startups. They're used to brand recognition, established processes, and inbound leads.

The Fix: Prioritize startup experience. Look for reps who built something from nothing.

Warning Signs:

  • "At IBM, we had a 40-person SDR team..."
  • "My manager set my appointments..."
  • "I followed the 57-step sales process..."

Mistake 2: Compensating for Activity Instead of Outcomes

The Problem: Paying for calls made or emails sent creates busy work, not revenue.

The Fix: Compensate for SQLs (SDRs) and closed revenue (AEs). Track activity as KPI, not comp driver.

Bad Comp Plan: $50 per call made, $100 per email sent Good Comp Plan: $200 per SQL, 10% of ARR closed

Mistake 3: Skipping Reference Checks

The Problem: 30% of sales candidates exaggerate attainment. Without verification, you hire underperformers.

The Fix: Always call 3 references. Ask specific, quantitative questions.

Verification Questions:

  • "What was [name]'s quota in 2024?"
  • "What percentage did they achieve?"
  • "Rank them against other reps on the team."

Mistake 4: Hiring Before Process Exists

The Problem: Sales reps need infrastructure—playbooks, CRM, marketing support. Without it, they fail.

The Fix: Build your process before your team. Founder should sell 10+ deals to prove repeatability.

Checklist Before First Hire:

  • 10+ customer case studies
  • Documented sales process (6+ stages)
  • CRM configured with pipeline
  • Lead flow of 50+ qualified leads/month
  • Sales playbook (20+ pages)

Mistake 5: Ignoring Cultural Fit

The Problem: Brilliant jerks destroy team morale and retention.

The Fix: Weight values fit at 10-15% of hiring score. Reject candidates who fail here, regardless of talent.

Cultural Red Flags:

  • Interrupts interviewers repeatedly
  • Blames others for past failures
  • Arrogance about skills
  • Disrespectful to admin staff

Real-World Examples: Sales Teams That Scaled

Example 1: Stripe (0 to 100 Sales Reps)

The Journey:

  • 2011: 2 reps (founder + first hire)
  • 2013: 8 reps (first managers hired)
  • 2015: 30 reps (segmented by company size)
  • 2017: 100+ reps (global expansion)

What They Did Right:

  1. Hired hunters early: First 10 reps all had startup experience
  2. Compensated aggressively: 50/50 split with uncapped commissions
  3. Built from product: Sales team deeply technical, could code demos
  4. Segmented early: Separated SMB, mid-market, and enterprise at 20 reps
  5. Promoted from within: 70% of managers were former Stripe AEs

The Result: $7B+ revenue run rate with industry-leading sales efficiency (40% of revenue).

Example 2: Datadog (Customer Success as Sales)

The Journey:

  • 2012: 0 sales reps (product-led growth)
  • 2014: 5 reps (expansion sales team)
  • 2016: 20 reps (enterprise team added)
  • 2018: 100+ reps (IPO preparation)

What They Did Right:

  1. Product-led first: Built free tier to identify expansion targets
  2. Technical sales: Hired engineers who could sell, not salespeople
  3. Expansion focus: 80% of revenue from existing customer growth
  4. Farmer profiles: Account managers with sales skills
  5. Usage-based selling: Aligned comp to customer success metrics

The Result: IPO at $8B, 130%+ net revenue retention.

Example 3: Airtable (Inbound to Outbound Transition)

The Journey:

  • 2015: 1 rep (founder selling)
  • 2017: 5 reps (inbound-only)
  • 2019: 25 reps (outbound motion launched)
  • 2021: 100+ reps (vertical segmentation)

What They Did Right:

  1. Proved inbound first: Validated product before scaling sales
  2. Hired VP early: Brought sales leadership at $800K ARR
  3. Segmented by use case: Product, marketing, and ops verticals
  4. Invested in enablement: 40 hours training per rep quarterly
  5. Built community: User-generated content reduced CAC

The Result: $11B valuation, efficient growth with 20% sales/marketing spend.


Scaling Beyond 10 Reps: What Changes

Structure Evolution

| Stage | Reporting Structure | Key Change | |-------|-------------------|-----------| | 1-3 reps | Flat (all report to founder/VP) | Direct oversight | | 4-6 reps | First managers (player-coaches) | Specialization begins | | 7-10 reps | Segmented teams (territory/vertical) | Segmentation | | 11-15 reps | Director layer added | Management depth | | 16-25 reps | Multiple directors, ops function | Professionalization | | 25+ reps | VP Sales → Directors → Managers → Reps | Full hierarchy |

Compensation Evolution

| Stage | Plan Complexity | Key Addition | |-------|----------------|--------------| | 1-3 reps | Simple (base + commission) | Individual accelerators | | 4-6 reps | Team bonuses | Manager override | | 7-10 reps | Segmented plans | Territory/vertical tiers | | 11-15 reps | SPIFs and contests | President's Club | | 16-25 reps | Full variable comp | Stock options for all | | 25+ reps | Professionalized | Retention bonuses |

Key Metrics by Stage

| Stage | Primary Metric | Secondary Metrics | |-------|---------------|-------------------| | 1-3 reps | Revenue per rep | Activities per day | | 4-6 reps | Team quota attainment | Ramp time | | 7-10 reps | Pipeline coverage | Forecast accuracy | | 11-15 reps | CAC payback | LTV:CAC ratio | | 16-25 reps | Sales efficiency | Net revenue retention | | 25+ reps | Revenue per head | Quota attainment % |


Tools and Resources

Hiring Tools

| Tool | Purpose | Price | |------|---------|-------| | LinkedIn Recruiter | Candidate sourcing | $8,000+/year | | Greenhouse | Applicant tracking | $6,000-$20,000/year | | HireVue | Video interviewing | Custom pricing | | LinkedIn Skill Assessments | Initial screening | Included with Recruiter |

Compensation Planning

| Tool | Purpose | Price | |------|---------|-------| | Carta | Equity management | $2,000+/year | | Pave | Compensation benchmarking | Free-$10,000/year | | Radford (Aon) | Salary surveys | Custom pricing | | Salesforce | Commission tracking | $75+/user/month |

Sales Enablement

| Tool | Purpose | Price | |------|---------|-------| | Lessonly | Training platform | $500+/month | | Seismic | Content management | Custom pricing | | Highspot | Sales enablement | Custom pricing | | Gong | Call coaching | $1,200+/user/year |

Recommended Reading

  • "The Sales Acceleration Formula" by Mark Roberge
  • "Predictable Revenue" by Aaron Ross
  • "From Impossible to Inevitable" by Aaron Ross and Jason Lemkin
  • "The Ultimate Sales Machine" by Chet Holmes

Conclusion

Building a sales team is the ultimate test of your startup's maturity. You move from founder-dependent revenue to a scalable, predictable engine.

Start with your first hire. Choose a hunter if you're early, a farmer if you have expansion opportunity. Use the scorecard to evaluate candidates rigorously. Compensate with 50/50 splits and accelerators. Onboard intensely for 90 days. Avoid the common mistakes: big company hires, activity-based comp, and skipping references.

As you scale, add structure thoughtfully. Bring in managers at 4-6 reps. Segment by deal size or vertical at 8-10 reps. Build enablement and operations functions at 15+ reps. Always promote from within when possible—internal hires have 2× the success rate of external manager hires.

Your sales team is your growth engine. Build it with the same care you built your product.


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About Sarah Mitchell

Editor in Chief

Sarah Mitchell is a seasoned business strategist with over 15 years of experience in entrepreneurship and business development. She holds an MBA from Stanford Graduate School of Business and has founded three successful startups. Sarah specializes in growth strategies, business scaling, and startup funding.

Credentials

  • MBA, Stanford Graduate School of Business
  • Certified Management Consultant (CMC)
  • Former Partner at McKinsey & Company
  • Y Combinator Alumni (Batch W15)

Areas of Expertise

Business StrategyStartup FundingGrowth HackingCorporate Development
287 articles published15+ years in the industry

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