Early-stage companies need their first sales hire to be an entrepreneurial go-getter who can operate their desk like a franchise.
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Your first sales hire can make or break your ability to survive. Yet, founders often rush this critical decision. They get dazzled by charisma or fixate on finding someone “hungry” for commissions. But the traditional sales-hiring playbook doesn’t work for early-stage companies. The candidate from a Fortune 500 company is probably used to having marketing collateral, case studies, and a polished, mature product. Your start-up can’t offer that yet. That money-motivated sales “superstar” might bolt the moment they realize how hard it is to sell without legacy logos and references.
What you really need is an entrepreneurial go-getter who can operate their desk like a franchise, who understands that being first means wearing multiple hats and possibly helping shape your strategy. Your first sales hire has to do more than sell your product. You need someone who can build your sales function from the ground up.
What to Look For
Finding someone who understands the challenges and pressures of early-stage companies is a big ask. They’ll need to maintain optimism while potentially hearing “no” more often than “yes.” That’s why traditional metrics of sales success—quota attainment at bigger companies or impressive W-2s—aren’t enough on their own. You also need someone who:
- Believes in your core values and is as invested in your vision as they are in their commission check.
- Is entrepreneurial-minded, understands there will be a lot of heavy lifting, and is naturally eager to be a conduit for the feedback loop.
- Is emotionally stable, realistic, and grounded.
- Understands the market so they can explain the product and its promise and can speak knowledgeably to the challenges your customers face and the solution your product provides.
- Has the technical chops to become an extension of your product team.
The ideal candidate is someone who has already been the first sales hire at another start-up, or who joined a company within a year or two after their product launch. They need to thrive with limited resources, without the infrastructure and support systems found in larger organizations. They must be comfortable selling a product that’s not fully formed and be able to compete against larger, established companies that have impressive client credentials.
Fair Compensation
Your first sales hire’s compensation package is just as critical as selecting the right person. The key is understanding the unique challenges they’ll face selling for a start-up and structuring their pay accordingly. This starts with realistic, if not conservative, estimates of your sales cycle length.
One approach is implementing a base salary plus bonus structure tied to miles by objective (MBOs). This helps balance immediate compensation needs with longer-term success metrics. One example might be securing an unpaid pilot; even though it’s not a sale, getting someone to agree to test-drive your product should be considered a rewardable accomplishment.
Another option is non-recoverable and recoverable draws. For example, you could offer a new employee a three-month non-recoverable draw, essentially giving them three months of unearned commissions—enough time to understand the product and how to sell it. Then, for the next three months, give them a recoverable draw that will be deducted from their future commissions. This helps keep base compensation in check while sending a clear message that the salesperson will be responsible for earning their keep.
Good commission plans help to reinforce good behavior. Consider adjusting commission rates based on the type of sale. For example, a 20 percent commission rate for existing customers (easier sales) and a 30 percent rate for new clients (more challenging sales). This provides higher rewards for the more difficult task of acquiring new clients, while still offering fair compensation for growing business with existing customers.
More Than Just a Sales Role
The most successful first sales hires understand they are signing up for more than just a sales role. They see themselves as entrepreneurs. They don’t just adapt to the challenges of selling without established processes or fancy marketing collateral; they thrive on it. When you find that person who combines sales chops with genuine enthusiasm for building something new, you’ll know you’ve found your custom-fit first sales hire.
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