This post is by Tomasz Tunguz from Tomasz Tunguz
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To many entrepreneurs, hiring the first salesperson is a mystery. When should I do it? How much should I pay this person? How do I structure the work? The great part about sales teams and sales departments is that they quantitative - sales teams thrive on numbers. At the most fundamental level, sales productivity has to exceed costs. So let’s answer the question of when to hire a salesperson by understanding the financial mechanics of a sales team.