A VP of Sales (Vice President of Sales) is the senior executive responsible for owning and leading the entire sales organisation -- from strategy and hiring to forecasting, quota-setting, and hitting the company's annual revenue target. In B2B, the VP of Sales is typically the first professional sales leader a company hires as it moves beyond founder-led selling.
What does a VP of Sales do?
- Own the annual revenue target (ARR or bookings quota)
- Build and lead the sales team: hire, train, and develop managers and individual contributors
- Design the sales process and methodology
- Set individual quotas, territories, and compensation plans
- Drive weekly and monthly pipeline and forecast reviews
- Partner with marketing on pipeline generation and lead quality
- Represent the sales function to the board and investors
- Reduce sales cycle length and improve win rates over time
VP of Sales vs CRO vs Sales Director
The VP of Sales owns the sales function. The CRO (Chief Revenue Officer) owns all revenue-generating functions: sales, marketing, and customer success. The Sales Director typically reports to the VP of Sales and manages a region or segment. In startups and early-stage companies, the VP of Sales and CRO are often the same person. In mature organisations, the CRO is the VP of Sales's boss.
VP of Sales vs Head of Sales
These titles are often used interchangeably at early-stage companies, but at later stages they can differ. "Head of Sales" is sometimes used for player-coach roles where the person is both managing a team and carrying their own quota. "VP of Sales" typically signals a pure leadership role without a personal quota. In India, "Head of Sales" is common at Series A/B companies; "VP of Sales" typically appears from Series B onward.
Key metrics a VP of Sales owns
- ARR or bookings growth vs plan
- Pipeline coverage (target 3-4x quota)
- Win rate by segment, by rep, and against named competitors
- Average sales cycle length
- Sales headcount and rep ramp time
- Quota attainment: percentage of reps at or above 100% of target
- CAC (in partnership with marketing)
When should a startup hire a VP of Sales?
Most B2B SaaS companies hire their VP of Sales between $1M and $5M ARR, once there is clear product-market fit and a repeatable sales motion that needs to be scaled. Hiring too early (before PMF) is a common and expensive mistake -- a VP of Sales cannot invent demand that does not exist. Signs it is time: the founder is spending 70%+ of their time on sales, and there are more inbound leads than can be handled, or the outbound motion has been proven by at least 2-3 reps.
VP of Sales compensation in India
At Series A to Series B B2B SaaS companies in India, a VP of Sales typically earns INR 30-60 LPA base with significant equity (0.25-1.5% vesting over 4 years) and an OTE of 1.5-2x base. At larger companies or in revenue roles at global SaaS subsidiaries in India, total compensation can exceed INR 1 crore. Benchmarks vary significantly by stage, company origin (Indian vs US-headquartered), and whether the role is India-only or a global remit.
Frequently asked questions
- What is a VP of Sales?
- A VP of Sales (Vice President of Sales) is the senior executive who owns the sales organisation -- the team, the strategy, the forecast, and the annual revenue target. They are typically the first dedicated sales leader a B2B company hires to professionalise selling beyond founder-led deals.
- What is the difference between a VP of Sales and a CRO?
- A VP of Sales owns the sales function. A CRO (Chief Revenue Officer) owns all revenue-generating functions: sales, marketing, and customer success. The CRO is usually the VP of Sales's boss at companies large enough to have both roles. At early-stage companies, the roles are often combined.
- When should a startup hire a VP of Sales?
- Most B2B SaaS companies should hire their VP of Sales between $1M and $5M ARR, once there is clear product-market fit and a repeatable (if manual) sales motion to scale. Hiring before PMF is expensive -- a VP of Sales cannot create product-market fit. A common test: can the founder write down the repeatable steps of a deal that closes?
- What does a VP of Sales earn in India?
- At Series A-B B2B SaaS companies in India, VP of Sales base salaries range from INR 30-60 LPA with OTE of 1.5-2x base and equity. At US-headquartered company subsidiaries or later-stage companies, total compensation can exceed INR 1 crore. Exact figures depend heavily on stage, ARR, and whether the role has a global or India-only remit.