This option is high cost, high results and is fairly rare to see. Sure, the results are stellar, but the cost is high. We’ve only seen a handful of companies with small sales teams led by a true pro. The one company that comes to mind had three salespeople, and the sales leader was making $275,000. The math is just too ugly. It takes a special business model to be able to invest $90,000 per employee in sales management.
The company in question was highly profitable, so the math worked, but for most companies, the cost per employee simply needs to be lower.
This option is one that most CEOs can’t get themselves to consider, but we strongly urge you to consider this option over the two worst options – hiring an inexpensive sales leader or promoting a salesperson to the sales leader. You may overspend paying a great sales leader, but it has a chance to be worth it. Taking the two bad options mentioned falls under the category of saving your way to success. Those methods cut sales and create organizational grief.