⚡ Get All Content for 20% Off ⚡

Why You Shouldn't Hire a VP of Sales Most companies waste precious money that could have been used to created more sales.

By Nigel Green

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

The executive sales leadership function (VP of Sales, Chief Sales Officer, etc.) is a huge role within a company, yet the title has been used in such a broad context that we have diluted the actual role of what the individual actually does. Executive sales leaders are members of the C-suite who are responsible for the executive function of a company's revenue generation. They are responsible for recruiting, hiring, training and leading the sales team, creating and communicating sales goals and leading the unit that generates most (or all) of the business for the company. They must be able to clearly map the customer's journey from first contact to post-purchase, create specialization within the roles of a sales force, and define territories and strategy for new markets. They rarely sell.

Companies in the early stages of revenue growth are most likely going to get this wrong. If you are a new company or startup and you don't have successful sales reps or managers on board before hiring your VP of Sales, then you've made a huge mistake. Hold off on hiring a VP of Sales until you are ready to scale your existing sales team — not just to start your company's selling efforts.

Related: 3 Reasons Marketing Is The New Sales

Before you hire your next VP of Sales, take a moment to decide if your company needs this role, and if so, how it should be filled. Don't hire a VP of sales until it's time to fund and grow a sales team.

If you are an early-stage company, your first sales hire should never be a VP. It should always be a sales rep — a very good sales rep. While a VP may make you look good to the board, what an early stage company really needs is a "Super Rep." A Super Rep is the person who can be the No. 1 advocate for your company, who begins bringing in revenue, and who goes out and simply sells, sells and sells some more. In contrast, a good VP of Sales should only spend about 10% of their time selling; the other 90% is spent strategizing, coaching and managing.

On the other end of the spectrum, well-established companies can miss badly on their VP of Sales hires too. Once you've established your company and are ready to hire (or change) a VP of Sales, the error stems from promoting one of your top reps or managers into the role. This ends up being a mistake because often the VP spends too much of their time directly selling and working with customers and not enough time building training programs, strategizing new product offerings, coaching reps on maximizing sales, pondering joint ventures, managing board and executive team expectations, and leading the sales force.

Related: 3 Sales Tweaks That Could Change The Game for Your Business

Without the VP of Sales performing VP of Sales work, a company's sales system breaks down. The VP may think they are doing the right thing. Rather, the company has put the wrong person in the wrong role by promoting a rep or manager. It is worth going outside of the company and hiring the right person for the VP of Sales in order to ensure the role is filled correctly and the company's needs for that role are met.

The Vice President of Sales is a role that can make or break a company, which is why it's crucial to find the right person to fill the position. It's not the first hire in the sales organization, and they probably don't work for your company today.

Related: How to Build a World Class Sales Team

Nigel Green

The leading authority on improving sales team performance

Nigel Green is a sales consultant, entrepreneur, author and podcast host of Revenue Harvest. Green is a widely-regarded authority on improving sales team performance, working with companies to build best-in-class sales teams.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.