Finding the right sales leader for your growing company can be a challenge. Often, you need high-level expertise to drive growth, but aren't ready for a full-time VP of sales. That's where a fractional VP of sales comes in. These seasoned sales executives work on a part-time basis across multiple companies. Hiring a fractional VP provides targeted leadership for key sales initiatives when you need it.
Adding sales leadership is a big investment. The fractional model allows you to get VP-level experience without excessive risk or cost.
There are a few scenarios where a fractional executive makes perfect sense:
Many companies hit an inflection point where the founder can no longer drive sales alone. Revenue growth stalls as you try scaling your sales efforts. A fractional VP brings strategic focus to get your sales engine humming again. They can pinpoint organizational issues impeding growth and map out processes to enable scaling. The fractional model gives you this high-level perspective without the commitment of a full-time executive.
When launching a new product or sales initiative, fractional leadership brings ideal support. You want executive experience to set up processes and strategy properly from the start. A fractional VP helps craft your go-to-market plan, build the team, and stay closely involved in the initial rollout. The fractional model means you don't pay for a full-time resource when you only need targeted leadership for the launch.
As the company grows, founders often shift their focus to business strategy, fundraising, or product development. But who will manage sales? Handing over the reins is difficult without the right leader. A fractional VP provides seasoned leadership to handle sales executively. The founder can focus elsewhere knowing an experienced VP is optimizing the sales engine and process.
When rapidly expanding into new segments or geographies, fractional leadership enables agile growth. The VP helps set sales strategy for new markets and build scalable processes. With an executive managing new-market expansion, founders can concentrate on other priorities. The fractional arrangement allows seasoned leadership where you need it without excess cost.
Once the sales team reaches 10-20 reps, optimization becomes crucial. A fractional VP brings expertise to implement structures for long-term success. They focus on refining sales process, specialization, compensation plans, and leveraging technology. The fractional model gives you an experienced optimizer to take the team to the next level without the cost of a full-time executive.
Once you decide to engage a fractional VP of sales, finding the right fit is critical. The executive will have an outsized impact on your sales culture and growth trajectory. Consider these key factors when evaluating fractional candidates:
Look for candidates with decades of sales leadership experience in your specific industry. For example, hiring a VP with B2B SaaS expertise is ideal for leading a SaaS sales team. Make sure the executive understands your customer profile, market landscape, and competitive environment. It takes less ramp-up when a fractional VP has extensive experience in your niche.
The VP's leadership style and values should align with your company culture. A data-driven VP who favors rapid iteration may clash with a bottoms-up culture centered on consensus. Look for shared values like transparency, innovation, and customer centricity. Discordant leadership style or values introduce unwanted friction.
Certain fractional VPs specialize in launching new products, optimizing inside sales, or accelerating enterprise deals. Look for specialized expertise that matches your needs. A product launch requires different leadership than scaling a transactional SaaS sales team. Precise alignment of expertise accelerates progress on your highest priorities.
The ideal fractional VP works independently to execute sales initiatives without excessive oversight. But they must also collaborate cross-functionally and communicate with transparency. Be wary of candidates who seem overly independent and may have trouble aligning with stakeholders.
Fractional executives divide their time across multiple clients. Ensure your candidate has capacity to drive meaningful progress. Ask how they prioritize time and measure impact across clients. With too many commitments, your initiatives risk falling through the cracks.
A fractional VP focused solely on immediate sales targets adds little long-term value. Look for a commitment to building scalable structure, coaching talent, and establishing processes that endure. The right fractional leader leaves the sales organization in a stronger, more mature state.
Ultimately, the core value a fractional VP provides is rapidly scaling sales. Look for a proven track record with past clients. Ask candidates to quantify their impact on revenue growth and team expansion. The ideal fractional exec consistently scales sales at high-growth companies.
Once you select a fractional VP, it's time to formalize the engagement. Defining the relationship properly sets the arrangement up for success. Consider the following elements:
You may engage your fractional VP for a fixed term like 6-12 months. This works well for targeted initiatives like new product launches. Open-ended engagements allow more flexibility if you want ongoing leadership for sales optimization. Outline clear metrics and outcomes to judge effectiveness.
Typical fractional engagements entail 5-15 hours per week. Define an expected weekly time commitment based on the scope of initiatives. More complex efforts may require up to 25 hours weekly. Establish meeting cadence and availability expectations too.
Fractional executives receive a base fee but are also compensated on growth outcomes. A performance-based component aligned with sales targets incentivizes driving results. Establish clear growth milestones tied to compensation.
Some fractional VPs work with a select handful of clients to remain focused. Others juggle higher volumes of clients. Decide if you want an exclusive or multi-client relationship. Exclusivity ensures full attention on your initiatives.
In an executive role, the fractional VP oversees sales directly including managing personnel. In an advisory arrangement, they provide strategic guidance but your sales leader remains in charge. Choose the role that best suits your needs.
Formalize the fractional engagement with a services agreement covering role, compensation, term, time commitment, and termination policies. Include NDAs and establish intellectual property ownership. Your legal counsel can help craft an appropriate agreement.
Once engaged, a productive working dynamic is essential for success. Here are tips for an effective fractional VP partnership:
Give thorough background on your vision and priorities for the sales organization. Detail the challenges impeding performance. Context accelerates the VP's path to impact.
Co-develop precise quarterly metrics for sales performance, team growth, and process maturation. Define longer-term milestone and targets as well. A clear path to success keeps engagement on track.
Schedule bi-weekly or monthly check-ins. Loop in the fractional VP on relevant team meetings and company announcements that affect sales. Frequent, transparent communication prevents misalignment.
Together, regularly review progress toward the defined success metrics and milestones. Course correct if necessary and align on any changing priorities. Maintain momentum toward shared objectives.
Get the most from your fractional VP by leveraging their specialized expertise. For example, tap into their product launch experience for crafting your go-to-market plan. Maximize value from their niche strengths.
Sales technology, data access, and marketing resources empower your fractional VP to deliver results. Provide the tools, budget, and internal support needed to hit goals. Removing roadblocks accelerates their pace of impact.
Give your VP autonomy to make decisions but align them with stakeholders. Balance empowering leadership with collaborative buy-in across the executive team.
Hiring a fractional VP of sales allows you to tap into executive-level sales leadership without the cost and commitment of a full-time resource. For companies pursuing new initiatives or working to scale revenue, fractional expertise brings transformative value.
Finding the right VP accelerates your sales engine, introduces scalable structure, and unlocks the growth potential in your organization. Just be sure to select a specialist who aligns with your culture and priorities. With the right fractional VP, your chances of achieving your biggest sales goals dramatically improves.