Integrity Power Search - Sales Hire #1 Compensation - Final - 7-8.pdf

When to Hire Your First Sales Rep?

You’re ready to hire your first sales rep when founder-led sales is no longer scalable. This is typically once you’ve closed 5–20 customers and start seeing repeatable signals in your sales motion.

Who to Hire?

Look for 1-2 individual contributors who can own their quota as full-cycle sales reps. Consider these factors:

• Stage fit: Can they thrive with limited resources and adapt to rapid changes?
• Industry fit: Have they sold in a similar vertical or know your customers' world?
• Persona fit: Have they sold to your target buyers? Do they speak the same language as your buyer persona?
• Deal size/complexity fit: Does their experience match your sales cycle and deal size?
• Product fit: Can they handle technical conversations if needed?

Compensation Structure

A typical compensation package includes:

• Base salary: 10-15% of fully ramped quota (usually $500k - $1.5M ARR)
• Variable compensation: Equal to base salary at target (often 8-15% of ACV sold)
• Equity: 0.1% to 0.35%, depending on seniority and role criticality
• Total On-Target Earnings (OTE): $200k - $300k for a $1M quota

Best Practices for Compensation Plans

• Keep it simple: Ensure the rep can easily understand how they get paid
• Make it achievable: Include a realistic 3-6 month ramp
• Align incentives: Encourage behaviors that benefit the business like longer contracts, and hitting margin targets