Rethinking Sales Leadership: Why Bigger Isn't Always Better
- DataBased Utah
- Feb 14
- 2 min read
The Costly Mistake of Over-Hiring
A recent conversation with a client underscored this challenge. They were running a $15M/year services-based business with a four-person sales team and were convinced they needed a CRM to improve sales efficiency. But after a deeper discussion, it became clear that their real challenge wasn’t technology—it was leadership. Rather than investing in software, they needed a sales manager who could bring structure, accountability, and momentum to the team.
Instead of hiring a fractional CRO—who could cost between $50,000 and $80,000 per month—they brought in a hands-on sales leader for $225,000 to $300,000 per year. This decision not only saved them significant costs but also ensured they had someone deeply embedded in their team, guiding customer success, marketing, and sales toward a unified growth strategy.
Experience vs. Hunger: Striking the Right Balance
In another case, a leader was considering hiring a VP of Sales at a $500,000 annual salary. However, their team size didn’t justify that level of experience. Instead, they opted for a director-level hire at around $300,000—a leader with strong sales management experience who was eager to prove themselves in a second-line leadership role.
The key here is understanding the difference in skill sets. A VP of Sales is invaluable when managing a team of 40+ reps. But for a seven-person team, a capable, driven leader in the $300,000 range can provide the same level of impact at a fraction of the cost.
The Right Leadership at the Right Time
These scenarios highlight a crucial lesson: hiring isn’t just about getting the best candidate—it’s about getting the best candidate for your company’s stage. Over-hiring too soon can lead to unnecessary costs, misalignment, and even frustration within the team. Under-hiring can stall growth. The sweet spot lies in bringing in leaders who are both experienced and motivated to grow with the company.
At DataBased, we work closely with organizations to determine the right level of leadership, ensuring they don’t overpay or under-hire. Whether through recruitment, training, or cultural development, our goal is to match companies with leaders who can drive sustainable success.
Before making your next sales leadership hire, ask yourself: Do we need a heavyweight executive, or do we need a leader who’s in the trenches, building alongside us? The answer could save you hundreds of thousands of dollars—and set your company up for long-term success.
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