The Rep Doing Three Jobs
HarborStack sells cybersecurity compliance software. Twelve account executives each carry a $900k annual quota. They are responsible for new logos and for renewing and expanding their own installed base of about 35 accounts. Compensation is 100% new-logo bookings; renewals and expansion earn no commission but count toward quota at 1x. Expansion revenue is 6% of installed base; gross churn is 9%. AEs spend roughly 35% of their time on renewal paperwork, internal coordination, and low-value account check-ins. New-logo attainment is 71%; average ramp is nine months. Sales operations proposes splitting hunters and farmers, but the CFO worries about adding headcount and the CRO worries about account ownership. The CEO wants a recommendation that improves new-logo productivity without damaging renewals.
1. Use capacity math to show why the current model is failing, and what assumptions you need before splitting roles.
Read the worked answer
The capacity math exposes the problem. Twelve AEs at 35% non-selling time equals 4.2 FTE of capacity consumed by renewals, admin, and low-value check-ins-roughly four sellers not hunting. New-logo attainment is 71%, so the model is not just a motivation problem; it is a focus and role-design problem.
Before splitting, you need assumptions: account count and tiers (420 accounts), renewal complexity, expansion potential, required coverage ratio, ramp time, and whether AEs or CSMs can own renewals. If a farmer can cover 100-140 accounts, 420 accounts implies three or four farmers. But you must also assume expansion potential by tier; otherwise farmers become renewal clerks. The decision is not 'hunters versus farmers' in the abstract; it is which accounts justify dedicated post-sales coverage.
2. Propose a role and compensation design, including how to handle the existing installed base and transition risk.
Read the worked answer
Propose a tiered model. Top accounts (roughly 20%) get a farmer or account manager with a renewal and expansion quota; mid-tier accounts get a pooled CSM/farmer; low-touch accounts go to digital renewal. New-logo AEs keep 100% new-logo comp but hand off accounts after 90 days. Farmers should have a blended quota: renewal rate and expansion, with expansion weighted more.
Transition risk is real: AEs will resist losing accounts and commission. Protect the first renewal cycle with a transition bonus or hold harmless, and map every account with a SPICED summary and success plan. Do not split all 12 AEs at once; pilot one pod of three AEs and one farmer. This tests ownership, comp, and handoff before a full reorg.
3. What would you pilot first, and what would make you stop?
Read the worked answer
Pilot one hunter-farmer pod for two quarters. Success criteria: new-logo attainment improves without pipeline cannibalization, renewal rate holds or improves, expansion increases from 6% to a defined target, and ramp time for new AEs falls.
Stop or redesign if expansion does not move, if account handoffs create churn, or if the farmer becomes a renewal clerk. The pilot should include a control group of AEs still doing both roles so you can compare. The judgment is to test the operating model, not to reorganize the whole sales force on a theory. A pilot without a stop rule is just a slower reorg.