When to Hire an AE vs. VP of Sales for SDR Management
Founders face a critical decision in scaling their sales team structure effectively.
1Founder-led sales success
The founder initially closed deals themselves before hiring two SDRs (Sales Development Representatives). This demonstrates hands-on sales experience, which becomes valuable when managing early sales teams. The founder's direct involvement in both closing and SDR management suggests they've developed unique insights into the sales process that might be difficult to transfer to new hires.
2Management as a specialized skill
Managing entry-level sales professionals like SDRs requires distinct skills that differ from closing deals. Many experienced salespeople struggle with SDR management, as it demands patience and different motivational techniques. The founder appears to have a natural aptitude for this, which shouldn't be assumed to automatically transfer to Account Executives (AEs) who join the team.
3AE limitations in management
Most AEs lack proper training in managing other sales professionals, particularly SDRs. They typically focus on closing deals and often treat SDRs as administrative support rather than development roles. This mismatch can lead to ineffective SDR utilization and frustration on both sides, potentially wasting the investment in SDR hires.
4VP of Sales as ideal solution
A true VP of Sales possesses the skills to manage both SDRs and AEs effectively, creating a cohesive sales machine. However, finding a qualified VP at early stages can be challenging. The recommendation is to continue growing the team with additional AEs and SDRs first, then bring in a VP when the organization reaches sufficient scale.
5Alternative reporting structures
If management becomes overwhelming, temporary alternatives include having SDRs report to AEs or even to a Head of Marketing. Many demand generation leaders have experience managing small SDR/BDR teams. While not ideal, these stopgap solutions can work if the team demonstrates natural collaboration chemistry.
6Team composition strategy
The suggested approach involves hiring more AEs and SDRs before bringing in a VP of Sales. This allows the founder to maintain control during critical early growth while building out the sales organization. It creates a clearer case for a VP role once there's enough team complexity to justify the position.
7Management risk assessment
Having SDRs report to an untrained AE carries significant risks, including misaligned goals and poor performance management. While better than complete lack of oversight, this structure often leads to suboptimal results. The founder must weigh these risks against their current capacity to manage the team directly.
8Scaling sales operations
The transition from founder-led sales to professional sales management requires careful planning. Each hiring decision should consider both immediate needs and long-term organizational structure. The key is recognizing that different sales roles require different management approaches as the team grows beyond initial hires.
Original article: SaaStr — When to Hire an AE vs. VP of Sales for SDR Management