When to Stop Trying: A Sales Hiring Guide

AI Summary · A Serial Entrepreneur's Perspective

Jason Lemkin, founder of SaaStr, points out that if a new sales rep hasn't closed their first deal within 0.5–1 sales cycles (roughly 60 days), they likely won't make it past probation. Early-stage startups have limited resources and must quickly cut losses on underperformers, handing precious leads to reps who can actually close.

• Make the first close the only hard metric—don't just track visit volume
• Set a 60-day stop-loss rule: if there's no deal by then, swap the rep or let them go immediately
• Beware of excuses that blame the product, leads, or market conditions
• Only extend the observation period if a VP with independent P&L accountability gets involved

The Core Standard: The First Close (On Board)

In SaaS, the single hard indicator of whether a new AE has potential is this: Did they close their first deal within the first sales cycle?

"Success" here doesn't mean hitting quota right away, but the rep must close at least one or two small deals within 0.5 to 1 sales cycles (typically around 60 days).

Why Cut Losses So Quickly?

1. Early leads are extremely expensive: For startups, sales leads often come from the founder's personal network or a tiny marketing budget. Handing precious early-stage leads to a rep who can't get traction is the biggest waste of company assets.

2. Confidence matters more than gold: Sales is a high-rejection role. If a rep goes two months without results, their confidence crumbles and they start falling into "making excuses" mode.

Common Excuses and the Truth Behind Them

If a rep hasn't closed after one full cycle, they'll usually say:

• "The product isn't mature enough."
• "The leads we got were terrible quality."
• "We never got proper training."

The truth: Those problems do exist, but great reps find a way to close even within those constraints. Reps who never get off the ground typically lack the ability to close against resistance.

The Only Exception: VP-Level Hires

For ordinary frontline sales reps, there's no patience for "slow starter" profiles. But if your company has hired a VP of Sales, the situation can be different.

If the VP is willing to absorb the pressure and personally mentor the rep, extending the ramp period beyond 1.5 cycles, there may still be a path forward. Yet most founders wearing both hats simply don't have the time or mental bandwidth to run that kind of development program.

Action Plan

• Day 30: Review activity metrics—were they met?
• Day 60: There must be signs of a first close (a demo or advanced negotiation).
• Day 90: If there's still no real progress, cut losses decisively.

Original · SaaStrAI: Read the original article →