Sales Team Hiring Plan v1.

0
A sales team hiring plan for sales-driven SaaS companie
Created by Christoph Janz of Point Nine Capital

ASSUMPTIONS

Growth targets AE quota & ramp-up

ARR end of Year 1: $ 1,000,000 $50,000
ARR growth p.m., year 2: 9.59% Month 1:
ARR growth p.m., year 3: 9.59% Month 2:
Net MRR churn rate p.m.: 1% Month 3:
Month 4+:

HIRING PLAN

Year 1
12 1 2

ARR target $ 1,000,000 $ 1,095,870 $ 1,200,931

Net ARR churn $ 10,000 $ 10,000 $ 10,959
New ARR from new customers $ 105,870 $ 115,061

AE Quota
AE 1 $ 50,000 $ 50,000 $ 50,000
AE 2 $ 50,000 $ 50,000 $ 50,000
AE 3 $ 12,500 $ 25,000
AE 4
AE 5
AE 6
AE 7
AE 8
AE 9
AE 10
AE 11
AE 12
AE 13
AE 14
AE 15
AE 16
AE 17
AE 18
AE 19
AE 20
AE 21
AE 22
AE 23
AE 24
AE 25
AE 26
AE 27
AE 28
AE 29
AE 30
Total $ 112,500 $ 125,000

Number of AEs 2 3 3

Sales Directors 0 0
SDRs 1 1
SDR Directors 0 0

Total sales headcount 2 4 4

New additions 2 0

ARR Targets &

35

30

25

20

15

10

0
10

0
12 1 2 3 4 5 6 7 8 9 10 11 12
SDR Directors Sales Directors
AE quota & ramp-up Sales support staff
new ARR per AE p.m. Hire 1st Sales Director at 4
25% Maximum # of AEs per Sales Director: 7
50% Maximum # of AEs per SDR: 3
75% Hire 1st SDR Director at 4
100% Maximum # of SDRs per SDR Director: 7

Year 2
3 4 5 6 7

$ 1,316,064 $ 1,442,235 $ 1,580,503 $ 1,732,025 $ 1,898,075

$ 12,009 $ 13,161 $ 14,422 $ 15,805 $ 17,320
$ 126,092 $ 138,180 $ 151,428 $ 165,945 $ 181,854

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 37,500 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 12,500 $ 25,000 $ 37,500
 $ 137,500 $ 150,000 $ 162,500 $ 175,000 $ 187,500

3 3 4 4 4

0 0 1 1 1
1 1 2 2 2
0 0 0 0 0

4 4 7 7 7
0 0 3 0 0

ARR Targets & Sales Headcount

$10,000,0

$9,000,00

$8,000,00

$7,000,00

$6,000,00

$5,000,00

$4,000,00

$3,000,00

$2,000,00

$1,000,00

$-
 $3,000,00

$2,000,00

$1,000,00

$-
10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
ectors Sales Directors SDRs AEs ARR
 Notes

aff Blue numbers are data-entry cells which allow you to

AEs Enter your current ARR, your target growth rate and
Enter your AE quota in cell F10. Cells G10-12 allow y
Use cells K10-14 to adjust the plan for sales support
SDRs
Please check out this blog post for more notes on ho

8 9 10 11 12

$ 2,080,043 $ 2,279,457 $ 2,497,988 $ 2,737,470 $ 2,999,912

$ 18,981 $ 20,800 $ 22,795 $ 24,980 $ 27,375
$ 199,289 $ 218,394 $ 239,332 $ 262,277 $ 287,421

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 12,500 $ 25,000 $ 37,500 $ 50,000
$ 12,500 $ 25,000 $ 37,500 $ 50,000
$ 200,000 $ 225,000 $ 250,000 $ 275,000 $ 300,000

4 6 6 6 6

1 1 1 1 1
2 2 2 2 2
0 0 0 0 0

7 9 9 9 9
0 2 0 0 0

$10,000,000

$9,000,000

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$-
 $3,000,000

$2,000,000

$1,000,000

$-
11 12
 -entry cells which allow you to customize the spreadsheet. Everything else is calculated.
R, your target growth rate and your net MRR churn raze in cells D10-13.
cell F10. Cells G10-12 allow you to model the time it takes for AEs to reach full productivity.
just the plan for sales support staff.

blog post for more notes on how to use this model.

Yea
1 2 3 4 5

$ 3,287,513 $ 3,602,687 $ 3,948,077 $ 4,326,579 $ 4,741,368

$ 29,999 $ 32,875 $ 36,027 $ 39,481 $ 43,266
$ 314,976 $ 345,173 $ 378,265 $ 414,529 $ 454,270

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 12,500 $ 25,000 $ 37,500 $ 50,000 $ 50,000
$ 12,500 $ 25,000 $ 37,500 $ 50,000 $ 50,000
$ 12,500 $ 25,000 $ 37,500
$ 12,500
$ 12,500
$ 325,000 $ 350,000 $ 387,500 $ 425,000 $ 462,500

8 8 9 9 11

2 2 2 2 2
3 3 3 3 4
0 0 0 0 1

13 13 14 14 18
4 0 1 0 4
Explanation of acronyms Disclaimer

ARR = Annual Recurring Revenue
AE = Account Executive
SDR = Sales Development Representative
Questions, comments, suggestions?
eMail christoph@pointninecap.com
Please be aware that his model may be inaccurate, inco
misleading, use it at your own risk, yada yada yada. Fee
distribute. If you distribute a modified version, please ma
you've made changes.

Year 3
6 7 8 9 10

$ 5,195,923 $ 5,694,056 $ 6,239,945 $ 6,838,169 $ 7,493,744

$ 47,414 $ 51,959 $ 56,941 $ 62,399 $ 68,382
$ 497,821 $ 545,547 $ 597,848 $ 655,164 $ 717,975

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 25,000 $ 37,500 $ 50,000 $ 50,000 $ 50,000
$ 25,000 $ 37,500 $ 50,000 $ 50,000 $ 50,000
$ 12,500 $ 25,000 $ 37,500 $ 50,000
$ 12,500 $ 25,000 $ 37,500 $ 50,000
$ 12,500 $ 25,000
$ 12,500 $ 25,000
$ 12,500 $ 25,000
$ 500,000 $ 550,000 $ 600,000 $ 662,500 $ 725,000

11 13 13 16 16

2 2 2 3 3
4 5 5 6 6
1 1 1 1 1

18 21 21 26 26
0 3 0 5 0
model may be inaccurate, incorrect or
own risk, yada yada yada. Feel free to
a modified version, please make it clear that

11 12

$ 8,212,169 $ 8,999,470
$ 74,937 $ 82,122
$ 786,807 $ 862,238

$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 50,000 $ 50,000
$ 37,500 $ 50,000
$ 37,500 $ 50,000
$ 37,500 $ 50,000
$ 12,500 $ 25,000
$ 12,500 $ 25,000
$ 12,500
$ 787,500 $ 862,500

18 19

3 3
6 7
1 1

28 30
2 2