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If You Haven't Decoupled Revenue From Sales, You're a VP of Sales

There's a test for whether a company actually has a Chief Revenue Officer, and it takes about ten seconds.

Count the ways revenue enters the business.

If the answer is one, and that one is new business sales, then whatever the org chart says, you have a VP of Sales with a better title. The C in front of it is describing an ambition rather than a structure.

What the title is supposed to mean

The reason the role exists at all is that revenue and sales stopped being the same thing.

A company can produce revenue through a motion that doesn't run through the new business team. Existing customers can grow. Accounts can move up a tier because they arrived somewhere, not because somebody called them. That's a second channel, with its own inputs, its own timing and its own people.

If those channels both exist, somebody has to own the total across them, which is a genuinely different job from running one of them well. That's the job.

If only one channel exists, there's nothing to be chief of. You have a sales leader, a sales number, and a sales forecast, and adding a layer above it doesn't change the arithmetic.

Look at the reporting line

Here's where it shows up in practice.

In a lot of companies with both a CRO and a VP of Sales, the VP reports to the CRO and nothing else about the structure differs. Same number, same motion, same forecast, one more person in the meeting.

Ask what revenue the CRO is responsible for that the VP of Sales isn't. If the honest answer is "the same revenue, one level up," the title is decorative.

The expansion that does happen in that company happens ad hoc. Nobody owns it, nothing triggers it, no forecast contains it, and it arrives in spite of the company's efforts rather than because of them.

Now the part that gets argued with

Say all that and the reply is usually some version of: fine, then make the sales team do expansion too.

That's the wrong fix, for two reasons, and the second one is the one people skip.

It's not the best use of them. I want new business salespeople doing new business sales. There's a made-up number, there are quotas attached to it, and hitting it is how the company survives the year. If a rep has spare capacity to work expansion, the honest read isn't that they're efficient. It's that their new business quota is too low.

I say this to people who assume the expansion argument is an argument against acquisition. It isn't. New logos are the only way to get customers in the first place, and a company that stops caring about them dies of a different cause.

And they'd have to code switch, which almost nobody does. New business sales is a specific skill aimed at people you have no relationship with, working through loss aversion, on a clock. That skill set is real and it's hard and it's exactly wrong pointed at an existing customer.

Take the same instincts, the same urgency, the same tactics, and aim them at somebody who already pays you, and at best it doesn't land. At worst you've damaged a relationship to chase revenue you were going to get anyway.

What actually covers it

Expansion doesn't need a second sales team. It needs to stop being extra.

The customer moves through progress milestones. At certain points they pass a readiness gate where a specific next thing genuinely fits. That's knowable in advance, it's countable this quarter, and the conversation about it is a delivery conversation rather than a sales one.

Somebody still has to do the work of adding it to the account, and that person may well carry a bag. The distinction isn't who executes it. It's that the motion is baked into how the customer is served rather than bolted on as a campaign.

Which is why this is a structural argument rather than a headcount one. You're not adding a team. You're admitting that a second revenue channel exists, and then giving it the things every channel needs: a number, an owner, a trigger and a place in the forecast.

The test again

Two channels, run separately, with somebody accountable for the total.

That's a CRO.

One channel, plus hope that the other one shows up on its own, is a sales org with an expensive hat on it. And every quarter it stays that way, the revenue that was available in accounts you already have goes uncollected, which nobody notices, because it never appeared on a report as missing.


Lincoln Murphy formally named and popularized Customer Success starting in 2010 and has spent 15 years connecting it to expansion revenue and commercial outcomes. Read The Premise.

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