How to Build Your Startup’s Sales Team

No sales, no business. Simple as that.

Building your first sales team is intimidating because sales works differently than other roles. Pay varies with performance. Goals change quarterly. Compensation gets complicated fast.

Here's what you need to know to hire right and set up incentives that actually work.

Sales compensation basics

Sales reps get paid differently because their results are easy to measure. Close more deals, make more money. Miss your numbers, make less.

Most plans combine these elements:

Base salary: What they make no matter what. Usually 40-60 percent of total pay.

Commission: Percentage of each deal they close. Typical range is 5-20 percent depending on deal size and industry.

Quota: How much revenue they need to bring in per quarter or year.

On-target earnings (OTE): What they make if they hit their quota exactly.

Accelerators: Higher commission rates for deals above 100 percent quota attainment.

Example: $60,000 base + $40,000 commission at quota = $100,000 OTE.

Set up incentives that work

Your compensation plan tells your team what matters most. Get it wrong, and they'll focus on the wrong things.

Keep it simple. If your plan doesn't fit on an index card, it's too complicated. New hires should understand what you want them to do within five minutes.

Match your business model. Inbound leads from marketing? Focus commission on closing deals. Outbound prospecting? Reward both meetings booked and deals closed.

Do your homework. SaaS companies typically use 4-6x quota-to-OTE ratios. Enterprise sales might be 3-4x. Research what's standard in your industry.

Make the math work. High-performing reps should make good money. But if someone hits 150 percent of quota and you lose money on their commission, fix your plan.

What to look for in your first sales hire

Your first sales hire builds the foundation for everything that comes after. They write the playbook while hitting their numbers.

Look for someone who can:

Take initiative. They won't have a manager giving daily direction. They need to figure out what needs doing and do it.

Solve problems. Every startup sales process hits roadblocks. Your first hire needs to find solutions, not wait for answers.

Think strategically. They'll help you figure out who to sell to, how to price, and which deals to prioritize.

Actually sell. All the strategic thinking means nothing if they can't close deals.

Hire them like you'd hire anyone else: reasonable person, good track record, believes in what you're building.

Set your team up to succeed

Signing the offer letter is just the start. Even great salespeople need support.

Sales isn't magic. Don't hire someone and expect revenue to pour in automatically. They need tools, training, and ongoing support.

Product knowledge matters. Your rep might be great at selling, but they need to understand why your product is better than alternatives. Invest in training.

Belief drives results. Reps who genuinely think your product helps customers will outsell those who don't. Listen to their concerns and address them.

Give them what they need. CRM access, marketing materials, competitive intelligence, pricing guidelines. Remove friction so they can focus on selling.

Get the details right

Territory and accounts: Who sells to whom? Clear boundaries prevent internal competition.

Lead assignment: How do inbound leads get distributed? First-come-first-served works until you have multiple reps.

Deal approval: What deals need manager approval? Set dollar thresholds and discount limits.

Reporting: What numbers do you track? Revenue, pipeline, activity metrics. Keep it focused.

Common mistakes to avoid

Copying another company's plan. What works for enterprise software might not work for e-commerce. Build for your business.

Changing plans mid-quarter. Reps need predictability. Make changes at natural breaking points.

Forgetting about taxes. Commission income has different tax implications. Factor this into your planning.

Ignoring cash flow. Big commission payments can strain startup budgets. Plan accordingly.

Your next steps

Start with one strong hire and a simple commission plan. Add complexity as you learn what works.

Most startups get their first sales hire wrong. That's okay—learn fast and adjust. The second hire usually goes better.

Focus on finding someone who can build while they sell. Everything else can be taught.

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Building a sales team means managing more complex finances. Pilot handles your bookkeeping and back office so you can focus on growing revenue. Talk to our team about keeping your finances clean as you scale.