Dear SaaStr: I’m at $5m ARR. Should I Hire a CRO?
No, you need a VP of Sales, not a CRO. However, in today’s world, sometimes you have to allow for a little title inflation. If they will be a hands-on sales leader, but just want the title, sometimes it’s worth bending here.
But you are too early for a true CRO.
A CRO is ideal when you’re at $15M-$20M ARR and need someone to align sales, marketing, and customer success under one leader. But at $3M ARR, you’re not there yet. Here’s why:
1. You Need a Doer, Not a Delegator
A CRO is usually a strategic role. They focus on aligning teams and setting long-term revenue strategies. At $5M ARR, you need someone in the trenches, hiring reps, closing deals, and scaling your sales team. A VP of Sales is the right hire because they’ll be hands-on and execution-focused.
2. CROs Often Struggle to Hire Great VPs of Sales Under Them
Most startup CROs fail because they can’t hire a great VP of Sales under them. They take the title but spend months finding someone for the VP of Sales job. You need someone ready to own that role fully.
3. Your Marketing Leader Probably Doesn’t Need a Boss Other Than The CEO Right Now
Let marketing run independently. Your sales and marketing leaders should report directly to you as the CEO. Ensure they are aligned. A CRO would add unnecessary complexity and dilute focus.
4. Focus on Scaling Sales First
At $3M ARR, focus on sales. You need a VP of Sales who can hire great AEs, build a repeatable process, and get you to $10M-$15M ARR. Consider a CRO after reaching $10M-$15M ARR to align sales, marketing, and customer success. For now, focus on scaling sales.
5. Avoid Title Inflation. If You Can. But It’s Always Not Fatal.
Hiring a CRO too early sets misguided expectations. It signals you’re further along than you are. A CRO title might attract candidates more interested in prestige than in scaling sales. Stick with a VP of Sales. But if you have the perfect candidate who’ll do the work and wants an inflated title, consider taking the risk.
In short: hire a hands-on VP of Sales, not a CRO.
Keep marketing and sales separate, reporting directly to you. Once you’re at $15M-$20M ARR, revisit the idea of a CRO. Focus on finding a VP of Sales who can execute and scale your sales team. Let me know if you want to discuss structuring the VP of Sales role or candidate evaluation.
This was the #1 piece of advice from Slice’s A+ CRO, too. You need a VP of Sales — Not a CRO: