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Glossary:
Sales Roles & Team Structure
Master the essential revenue and financial metrics that drive B2B SaaS success. From ARR and MRR to retention metrics and customer economics, these terms are critical for understanding pipeline health, forecasting growth, and making data-driven decisions.
VP of Sales
Short Definition
Definition
The VP of Sales leads the front-line sales organization and is accountable for turning pipeline into closed revenue through effective strategy, hiring, coaching, and execution. This role typically owns new logo acquisition and commercial expansions, while partnering with Marketing, Customer Success, and Revenue Operations to ensure pipeline health, efficient processes, and consistent quota attainment.
Unlike a Chief Revenue Officer (CRO), who owns the full revenue engine (sales, marketing, CS, and often partners), the VP of Sales is usually focused on the direct sales team: Sales Development, Account Executives, Sales Engineering, and sometimes Account Management in sales-led models.
Core Responsibilities
1. Set Sales Strategy and Targets
- Translate company and CRO/CEO revenue goals into segment, region, and team quotas.
- Define sales motions by segment (SMB, mid-market, enterprise) and GTM model (inbound, outbound, PLG-assist, channel).
- Decide on coverage models (territories, named accounts, verticals) and sales methodologies (e.g., MEDDPICC, SPICED).
2. Build and Lead the Sales Organization
- Design the sales org structure (AE, SDR/BDR, SE, AM) and reporting lines.
- Hire, onboard, and develop front-line managers and reps; set clear expectations and career paths.
- Establish a performance culture with regular 1:1s, pipeline reviews, and coaching.
3. Own Forecasting and Quota Attainment
- Run weekly, monthly, and quarterly forecast calls to understand risk and upside.
- Maintain high forecast accuracy by enforcing deal inspection and stage discipline.
- Drive accountability for quota attainment at team and individual levels.
4. Improve Sales Process and Execution
- Define and refine the sales process, from qualification through close, aligned to CRM stages.
- Standardize discovery, proposals, and mutual action plans to reduce slippage and increase win rates.
- Partner with Revenue Operations to ensure accurate data, reporting, and tooling.
5. Align With Marketing, CS, and Product
- Collaborate with marketing on lead SLAs, ICP alignment, campaigns, and pipeline generation targets.
- Coordinate with Customer Success and Account Management on handoffs, renewals, and expansions.
- Provide structured product feedback and competitive intelligence to Product and leadership.
VP Of Sales in the Leadership Team
The VP of Sales typically reports to the CRO or CEO, depending on company size and maturity. This role is a key voice in GTM planning, board discussions about pipeline and performance, and headcount or territory investments.
In earlier-stage companies, the VP of Sales often acts as both strategist and “super-IC,” directly owning key deals while building out the team. As the company scales, the role becomes more focused on leadership, systems, and cross-functional alignment than individual deal work.
VP Of Sales vs CRO vs Sales Director
In many orgs, the VP of Sales manages multiple Sales Directors, each accountable for a region or segment.
Key Metrics
VP of Sales performance is usually evaluated on…
- New ARR / Bookings: New logo and expansion revenue closed by sales teams.
- Quota Attainment: Overall and per-team attainment, plus consistency across quarters.
- Win Rate: Percentage of qualified opportunities that become closed-won.
- Sales Cycle Length: Average time from qualified opportunity to close, by segment.
- Pipeline Coverage & Health: Coverage vs. quota, stage mix, and deal quality.
- Rep Productivity: Ramp times, average bookings per rep, and share of reps at or above quota.
Second-order metrics include forecast accuracy, discounting levels, and headcount efficiency.
VP of Sales Archetypes and Fit
Choosing the right VP of Sales profile is critical to stage and motion fit.
Common Challenges
- Bringing in a late-stage “scaler” when the company still needs a builder, or vice versa.
- Relying on a few star reps instead of scalable, repeatable processes.
- Poor stage definitions, undisciplined commits, and optimistic deal risk assessments.
- Disconnected ICP, messaging, or handoff processes leading to wasted pipeline or poor retention.
- Territories that are unbalanced or compensation plans that drive unhealthy behaviors.
Strong VPs of Sales address these with clear process design, rigorous hiring and enablement, and tight collaboration with partners across GTM.
Frequently Asked Questions
What does a VP of Sales do day to day?
A VP of Sales spends most days reviewing pipeline and forecasts, coaching managers and reps, participating in key customer calls, aligning with marketing and CS leaders, and refining process, territories, and hiring plans.
Does a VP of Sales always report to the CRO?
Not always. In companies without a CRO, the VP of Sales typically reports directly to the CEO. In more mature orgs with a CRO, the VP of Sales usually reports to the CRO as part of the broader revenue organization.
How is a VP of Sales different from a Head of Sales?
“Head of Sales” is often used at earlier stages and may be more hands-on, spending significant time closing deals. “VP of Sales” more clearly signals a senior, scalable leadership role with broader organizational design and strategic responsibilities.
What makes a good VP of Sales?
A strong VP of Sales combines stage-appropriate playbook design, disciplined forecasting, excellent hiring and coaching, and the ability to collaborate cross-functionally while consistently delivering quota attainment through the team—not just personal heroics.