Dear SaaStr: My Top Sales Rep Made $600,000 a Year — And Just Quit! What Happened?

Expensive SaaStr: My High Gross sales Rep Made $600,000 a Yr — And Simply Stop! What Occurred?

Okay to a few of you it will make no sense. However now I’ve seen this occur time and again, together with simply the opposite day at one in every of my high portfolio corporations.

The #1 or #2 rep in a start-up, that’s making numerous cash, and has all of it dialed in, and doesn’t wish to be a VP or Director — nonetheless quits. Usually, for one more job the place realistically, they received’t make almost as a lot cash. And sometimes, the place the working surroundings isn’t clearly any higher. And the place they’ve to begin over again.

Why would a gross sales rep stop a job the place they’re making high 1%-5% cash, revered, handled nicely, and have it dialed it?

It will not be 100% logical, however trying again, right here’s the place I see it occur:

A brand new VP of Gross sales is available in. At all times a dangerous time. The #1 rep will normally stick it out, but when they don’t really feel they’re handled nicely, they could depart. Even when they’re handled nicely — simply not the identical as earlier than. The most effective VPs of Gross sales know tips on how to deal with this. However rent a mediocre VP of Gross sales? You’ll usually see the #1 rep depart for the hills fairly shortly thereafter. An actual danger.
The VP of Gross sales leaves. Additionally a dangerous time. Usually, the #1 rep is sheltered and guarded by the VP of Gross sales. Anxiousness ranges can go up if their VP leaves.
Their comp goes down, or just, appears to be like tougher to realize. A gross sales exec I do know of their first true AE position was the #1 rep at a startup doing $20m ARR, and made nearly $800k. She stop to go to an enormous public firm as one in every of lots of of reps, and begin over. I requested her why. She mentioned the following yr simply seemed lots tougher. And so it was in actual fact. That is #1 cause I see this occur. When issues get tougher, a method or one other. As a result of they know.

The fixed right here? Change. All of us suppose people perceive there may be change in startups, they usually do. However usually the #1 gross sales rep doesn’t need an excessive amount of change. They not often see it pretty much as good — for them.

In any case, it’s the present surroundings, not some new one, the place they’ve thrived.

There’s a little bit of a theme right here, which is you can’t 100% management this. Your #1 rep leaving when there may be — change. However right here’s what you are able to do:

Make 100% positive your new VP of Gross sales and #1 rep are aligned. Sure, it’s the VP of Gross sales’ job, however usually it’s an odd dynamic, when a VP of Gross sales is available in and realistically doesn’t know the product, clients, and movement almost in addition to their new high report.
Contain the highest AE within the recruiting course of for the VP of Gross sales. I truly haven’t discovered this makes a ton of distinction — however nonetheless, do it. It reveals respect. It’s the way you’d wish to be handled.
Give them area. Spending much more time along with your #1 rep in instances of change doesn’t appear to assist. Lots of CEOs wish to do that, they love promoting with their high rep. However it doesn’t assist.
Don’t ask your high AE to do greater than … be the highest AE. Generally as founders, we lean on our high particular person contributors an excessive amount of, even inadvertently. We would like our high engineer to even be a group lead. Our high SDR to assist handle the opposite SDRs. Our high AE to assist information the remainder of the group. However particular person contributors usually solely wish to do just a bit of this. Ask extra, and you’ll breed resentment. I’ve made this error a number of instances myself. The most effective ICs (Particular person Contributors) usually simply wish to be that — and nothing extra. Don’t drive them to do extra, even a bit extra, than they wish to right here.
Allow them to know they’ll come again. Generally, that is actually the very best you are able to do. We’re all on our personal journey. A bit extra on that here. They usually see later it was a mistake to depart an surroundings that was completely suited to them. Ensure they at the least know their desk continues to be ready for them. You’ll nonetheless need them and wish them 12 months from now, too.
Lastly, a very nice VP of Gross sales will resolve this drawback for you. They’ll understand it’s their job to ensure the corporate isn’t overly reliant on one rep. But additionally to maintain their high performers, interval. Mediocre VPs of Gross sales preserve their low performers. However High VPs of Gross sales be certain the highest AEs keep after they be a part of.