Loading...
Answers
MenuWhere should we hire our sales reps?
We are a startup with a SAAS offering. Our typical deal size is 40K. Our office is in a suburb of San Francisco. We just hired our first sales rep for the West coast.
We want to hire another one for the east coast territory. Should we hire the person to work in our office or someone on the east coast?
Answers
Hello -- I've hired and grown both field sales representatives and inside reps for the last decade. I think the answer to this question depends on how your deals are currently won. If your deals are currently won over screen share or phone, it makes sense to hire the person on the west coast, and have them work directly in your office. Monitoring activity and understanding how deals move through the funnel, and fall out of the funnel will be easier when someone is in-house. If your deals require that you visit the customer in person, then I'd advocate for hiring them wherever your customer base is located. It seems to me like at 40k, this is an opportunity for an in-office hire. I'm happy to jump on a call to discuss in more detail.
The best salespeople have excellent networks, so I'd wager that an east coast sales rep should be hired on the east coast.
I'm not a sales rep by trade, but I've spent a lot of time selling my own products and services, and I've always been able to close more deals (and find more leads) when I'm mixed into the crowd I'm supposed to sell to: conferences, mixers, and other in-person events where I can casually meet and pitch potential clients.
Everyone will have their own approach, but all the best salespeople I know are doing most of their selling in person.
Good luck!
With many years of sales and sales management, I can tell you that people buy from people they like. So, you need to look at your business model. Is your existing Sales person telemarketing or out in the field making his presentations and calls and demonstrations? If you are currently using inside sales, then you can hire someone in your area to work the East Coast. If your business model is in the field, then you will need to hire someone that lives on the East Coast. And if that is the case, then I recommend utilizing an agency which will bring you a higher quality candidate.
If you're a relatively new startup, I would think twice before hiring a remote salesperson. Despite the potential for saving money and the timezone alignment, there are several downsides:
- Unless you (or other leaders) have experience in sales leadership, you should be learning from your sales reps every day. This is unlikely to happen with remote salespeople.
- Properly interviewing and vetting a candidate is much more difficult if the process is not conducted in person.
- In order to realize significant savings, you must recruit from a candidate pool with far fewer experienced SaaS salespeople.
-Taft
As a small company with $40k ACV, you should hire the rep to be in your office. The experience they will get being around your team everyday is very hard to replicate as a remote employee.
If you need to have boots on the ground to close deals, send your rep to travel 20-30% of his time to visit customers in person.
Related Questions
-
What is the best way to sell to dentists?
Get specific with the "who" of your market (i.e. what kind of dentist? what is their specialty? whom do they serve? demographics and psychographics of both the dentist AND their patients?) And specific with your offer to them. What are you selling? What are they buying? And why do they want it (according to THEM... not you)? Get those factors right and they'll buy from you all day long.DB
-
What's a reasonable profit margin on merchandise?
Are you the manufacturer or reseller? If you are the reseller, typically about 40-50% above cost. Use the MSRP as an indicator.ZR
-
What do (bootstrapped) startups offer to new sales hires? Commission only? What are some good examples to keep people motivated and still survive?
Generally bootstrapped startups should avoid salespeople, for a few reasons: a. they typically can't afford the base and overall comp required to attract sales people who can actually sell / or afford to support them with marketing, management, etc b. it will be very difficult to find the rare person with the right mix of sales and startup DNA along with the critical domain knowledge, consequently the startup is likely to settle c. the founders need to be very involved in the selling and customers will demand it That said, if the plan is still to hire a salesperson, find someone who has demonstrated sales success in startups and is excited by the early stage in company building. Create a comp plan heavily leveraged on sales results (unless you are in an industry where 100% commission is a common practice, would recommend against $0 base as this creates the false impression that your hire isn't passing time with one company while looking for another job with a richer comp plan - you want your rep focussed). Sell the vision and opportunity to be part of a growth story. I have written a several blog posts on hiring sales people into start-ups. You might find these useful: http://www.peaksalesrecruiting.com/ceo-question-should-i-learn-to-sell-or-hire-a-sales-person/ http://www.peaksalesrecruiting.com/start-up-sales-and-hiring-advice-dont-stop-selling-once-you-hire-your-first-sales-rep/ http://www.peaksalesrecruiting.com/hiring-start-up-sales-reps/ http://www.peaksalesrecruiting.com/startups-and-salespeople/ Good luck!EB
-
What would be a good answer for describing the size of your company to a potential prospect who might consider you too small to service their account?
What an awesome question! Businesses are running into this issue more frequently that ever, good news is, it can be done. Having worked on projects with oDesk, Fox Television and Wikipedia and having a very very small staff, it's certainly possible. Here's how I say it in our pitches to larger organizations: "Tractive West provides tailored video production services to organizations of all sizes. We have developed a distributed workflow using the latest digital tools. We leverage our small creative and management team with a world wide network of creative professionals, that means we can rapidly scale to meet the demands of any project while keeping our infrastructure and overhead lightweight and sustainable." Cheers and best of luck.SM
-
What should my consulting rates be as a freelance developer who can also do SEO, social media optimization and other marketing services?
Pricing for different tasks that require the same amount of time from you tells the Customer (and your subconscious) that you're working at a 5 on task x, but working at a 9 on task y simply because it costs/earns more. That seems to be a disconnect. Your time is your most precious asset, and I would charge for it whatever you're doing. If you build a site, and they are happy with your dev fee, but feel like you should charge less for SEO, simply let them find another SEO guy. That's their choice, but YOU are worth $xx.xx, no matter what you're doing. Also, in general, take whatever you're charging and add 10% to it. If you're still busy, add another 10%. Let the demand level determine how much work you do, and at what cost.SL
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.