# When to Hire an AE vs. VP of Sales for SDR Management Founders face a critical decision in scaling their sales team structure effectively. - **Source:** [SaaStr](https://www.saastr.com) - **Published:** 2024-05-20 - **Topic:** [Sales & BD](https://brifing.si/c/sales) - **Original article:** - **On Brifing:** https://brifing.si/s/10dcf0e1-a408-4638-a5e0-0ec6b0b8c5db ## Founder-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. ## Management 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. ## AE 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. ## VP 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. ## Alternative 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. ## Team 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. ## Management 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. ## Scaling 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. ## Sources covering this story - https://www.saastr.com/closing-deals-founder-hired-2-sdrs-closed-hire-ae-take-sdrs-close-vp-sales/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._