Unlocking Growth: The Case for a Fractional Head of Sales
In today’s competitive and fast-paced business environment, all companies are continually seeking innovative solutions to drive growth and enhance their sales performance. One such solution is the role of a fractional head of sales. A fractional head of sales, often referred to as an interim or fractional vice president of sales and in some cases a fractional chief revenue officer, serves as a part-time sales leader who brings extensive sales leadership experience and market knowledge without the full-time overhead costs. The head of sales is typically the highest ranking sales leader for a company. This specific title started being used more frequently about 15 years ago, oftentimes because of the “cool less formal start-up” factor, or that is what many heads of sales thought. To the dismay of some heads of sales, the implied yet vague nature of the title gave companies and their investors more longer term flexibility when they wanted to bring in a C-Suite executive like a vice president of sales, chief revenue officer, or chief sales officer.
While the standard definition of part-time varies from a few to 30 hours a week, the majority of fractional heads of sales will work for a limited number of clients for 10-20 hours a week. An interim head of sales might be a full-time role for a set number of months or perhaps a year during a time of change. There are also models with a set number of hours not to be exceeded for project work.
Identifying the Right Time to Bring on a Fractional Head of Sales
Choosing the right time to bring on a fractional head of sales can significantly impact your company's growth. Common triggers include when sales aren't closing, momentum has dropped off, or the accuracy of the sales pipeline in reliably predicting revenue is concerning. While your current sales team might resolve this, they could also get cold feet and start looking for new jobs. Are you willing to take that risk? Also, many businesses that are pre-revenue need help getting their first clients which takes a different set of skills. These are all the perfect times to bring in a fractional head of sales to diagnose the problem, develop a strategy to fix it, and build or reinvigorate your sales organization.
Another critical time is when a startup struggles with scaling challenges. If you are a Founder-led sales organization there comes a point where you are stretched thin. When you are struggling to meet increasing demands, feeling overwhelmed by sales strategy complexities, or trying to ensure that you minimize churn, these are clear indicators that you should strongly consider a fractional head of sales to support you for many reasons including your own health and well-being.
Lastly, when your current sales leader or team isn't achieving results, and the data doesn't add up, you should assess why. Common red flags include stagnating sales figures, high-performing employees losing motivation, a lack of structure or training, customer attrition increases, or an inability to penetrate new markets. These issues will stall momentum and hinder potential, or worse, cause key sales resources with important relationships to leave, impacting marketability for funding, acquisition or exit. By bringing in seasoned fractional sales leadership at pivotal moments, you can navigate challenges and drive sustainable growth. Don’t wait until problems reach a boiling point. Proactively seek sales mentorship and consider securing fractional sales leadership support as time is the only thing you can never get back. This could be the strategic move that propels your startup forward saving months of wasted time, unnecessary expenses, and uncomfortable conversations with key company stakeholders.
The Budget Benefits of a Fractional Head of Sales
Hiring a fractional head of sales can be a highly impactful decision for businesses looking to optimize their budget while still benefiting from top-tier expertise. Unlike a full-time executive, a fractional head of sales allows companies to access high-level qualifications and extensive experience at a fraction of the cost. This means gaining strategic insights and leadership without the burden of hefty salaries and related overhead costs.
Depending on the company's size, the head of sales' experience, and the geographic region, full-time salaries for this position generally start at $200K and in larger organizations can reach millions with incentives and bonuses plus equity. A fractional head of sales can reduce these expenses by as much as 50% to 75%.
Recently, there is a lot of chatter that confident sales leaders don’t require salaries, and that could not be further from reality. According to a Gartner Sales Survey, the grind, frequent rejection, and high-pressure environment often leads to burnout, which 90% of sales professionals experience. No experienced fractional head of sales or C-Suite executive will work solely for commissions and equity much like no quarterback in the NFL would work for no salary and just a percentage of ticket sales. Confident candidates will consider incentives on top of their standard fees and will find creative solutions if the fit is right. There is also an increasing trend for placement agencies to recruit and place fractional heads of sales. If they source the candidate and broker the deal, expect the standard 25%-35% markup on the hourly rate for the duration of the relationship, which only makes sense that they charge a similar finders fee like they would for a full-time placement. However, it can add up fast.
Investing in a fractional head of sales can have a massive impact across all business units. A fresh perspective can identify untapped market opportunities and motivate your team. It is simple to check reviews, LinkedIn recommendations, and references of potential candidates on your own to validate their accomplishments, credentials, and performance history. And, there is no reason why you cannot convert any fractional relationship to full-time at the right time, if that type of relationship makes sense for both parties.
Happy Selling!