VP Sales Revenue Impact

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:

  • 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
  • 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
  • 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
  • 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: 44:11
JL

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.

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