VP Sales Revenue Impact
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A great VP of Sales can significantly impact revenue by optimizing pricing and sales processes, particularly for founder-led companies that typically underprice their products.
Key Points:
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Revenue Impact:
- Good VP of Sales can drive 30-100% revenue lift in first quarter
- Achieves this through better pricing and sales optimization
- Can run existing playbook with same leads/customers but get better results
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Founder Pricing Problems:
- Founders typically underprice their products
- Focus more on getting product off ground than optimizing pricing
- Leave money on table to make customers happy
- This approach helps with initial traction but limits revenue
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VP of Sales Advantages:
- Not emotionally attached to product like founders
- Confident in asking for full product value
- Will not rip customers off but will get fair market value
- Can remove founder's imposter syndrome from pricing decisions
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Implementation:
- Can fix pricing for new customers (harder for existing ones)
- Can double prices: 6 to 12 to 18 to 100
- Mediocre VP of Sales will see revenue decline vs founder-led sales
- Great VP of Sales will drive immediate revenue lift through optimization
11:05 - 12:54
Full video: 44:11JL
Jason Lemkin
Founder and CEO of SaaStr, the world's largest community for SaaS B2B founders. Built and scaled EchoSign/Adobe Sign, now leveraging that experience as a venture capitalist.
Provides insights on scaling software businesses, AI trends, and product-led growth strategies through content and events.