Your lack of reps is killing your ARR


Generally speaking, SaaS companies want to grow. If a SaaS company is not actively hiring sales people, and acquiring new customers, they are probably headed for the graveyard. Another, more optimistic alternative is maybe they are setting up a lifestyle type business. Growing SaaS companies need to hire people, especially sales people. How long does it you to hire a new sales rep (TTH, TTF)?

Here's the simple math. Let's say a new rep is responsible for ~$500k of ARR which translates into ~$120k OTE. That represents roughly $9k of new ARR every single week (simple math, ramp not factored).

If you could shave two weeks off of the hiring process you would see $18k ARR added to the top line. If you hire 20 people annually, that's $360k of new ARR you'd see. On the flip side, for every week you have a seat open you are losing $9k. Multiply that by the number of open roles and the losses add up rapidly.

Hiring is a complex activity with a lot external factors, from the labor market, to location, to seasonality, to recruiters and hiring managers schedules. Just like everything else in SaaS, agility in the hiring process is required.

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