Sales directors · the role
What does a sales director do?
The short answer · updated
A sales director leads a company’s sales team to its revenue target. They set the sales strategy and targets, hire and manage the sales managers and salespeople, run the pipeline and the forecast, and own the largest deals and customer relationships. They report to the managing director, chief executive, commercial director or chief revenue officer.
What a sales director is responsible for
The sales director turns the company’s revenue plan into a sales plan and then delivers it. The job is about the number: how much the team will sell, to whom, through which channels, and how confident the business can be in the forecast.
In practice the work usually covers the areas below. The weight shifts with the business: in a company selling large contracts the sales director spends more time on key deals; in one with a big team, more on hiring, coaching and sales process.
- Sales strategy and targets: which markets, segments and accounts to go after, and how the target splits across teams and territories.
- The team: hiring, managing and coaching sales managers and salespeople, and setting their targets and commission plans.
- Pipeline and forecast: the deals in play, how likely each is to close, and the forecast the board relies on.
- Key deals and accounts: leading the largest bids and negotiations, and the relationships with the most important customers.
- Sales process and tools: the stages a deal moves through, the CRM, and the reporting that shows what is working.
- Reporting: sales performance to the chief executive and board, measured on revenue, win rate, pipeline and forecast accuracy.
Who a sales director reports to
In a smaller company the sales director usually reports to the managing director or chief executive. In a larger one they may report to a commercial director, who also owns pricing, partnerships and the wider revenue plan; our page on what a commercial director does covers that role. Where there is a chief revenue officer, the sales director often reports to the CRO.
Sales managers, account managers, business development and sometimes sales operations report into the sales director. The closest peers are marketing, which feeds the pipeline, and finance, which tests targets, discounts and commission plans against the budget.
Some sales directors sit on the board. A director appointed to the board carries the general duties of a company director, which Companies House sets out, including the duty not to accept benefits from third parties offered because of the role.
Sales director vs head of sales vs CRO
A head of sales runs a sales team day to day: the people, the activity and the pipeline. In a growing company the head of sales is often the first senior sales hire, and may report to a sales director once the team grows. See fractional head of sales roles.
A sales director owns the sales number for the business or a large part of it, sets the strategy and targets, and leads several managers or teams. The title usually carries more authority over pricing, key accounts and hiring than a head of sales.
A chief revenue officer (CRO) sits on the executive team and owns revenue across sales, marketing and customer success as one engine. A sales director may report to the CRO. Our CRO recruitment page sets out when a business needs one.
Titles vary widely between companies. Judge the role by the size of the number, the size of the team and whether the person sets strategy or delivers someone else’s.
The standards and rules a sales director works within
There is no required qualification. The Institute of Sales Professionals’ Sales Capability Framework sets out the knowledge, skills, behaviours and tools for effective and ethical sales, and is the basis of Ofqual’s specification of sales qualifications. Its code of conduct asks sales professionals to act with integrity, sell suitable solutions and act lawfully.
A sales director negotiates prices and sometimes meets competitors at trade events, so competition law matters. The CMA’s short guide to competition law risk explains that businesses agreeing not to compete with one another is a cartel, and that in every case where competition law is broken the CMA now considers whether to seek the disqualification of the directors of the companies concerned.
Hospitality and incentives around big deals fall under the Bribery Act 2010. The Ministry of Justice’s guidance explains that a company commits an offence if it fails to prevent bribery by people acting for it, and that adequate procedures are its defence.
Prospecting is covered by marketing law. The ICO’s guidance on business-to-business marketing explains that sole traders and some partnerships are treated as individuals for email marketing, and that data protection law applies to business contacts’ personal data.
Fractional, interim and permanent sales directors
A permanent sales director suits a business with a sales team that needs a leader every day, and a number the board expects someone to own for the long term.
A fractional sales leader works a set number of days a week or month: building the sales process, hiring the first managers, fixing the forecast, then handing over. It suits smaller or earlier-stage companies. See fractional head of sales and fractional CRO roles.
An interim sales director works full-time for a fixed period, often to cover a vacancy or turn round a team that has missed its number. See interim sales director roles.
Where a fractional or interim leader works through their own limited company, the off-payroll working rules (IR35) may apply. Status turns on how the engagement runs in practice, and a medium or large client makes the determination. Our IR35 guide sets out the tests.
What a sales director earns
Pay depends on the size of the business, the sector, location and how much of the package is tied to results. Permanent sales directors are usually paid a base salary plus commission or bonus; fractional and interim sales leaders a day rate.
Our sales director salary page sets out base, on-target earnings and day rates, each figure with its source.
How to hire a sales director
Start with the number and the team. Write the brief around the revenue the person will own, the team they will lead, and what has to change in the first year. If the need is the whole revenue engine, look at a CRO; if it is pricing, partnerships and key accounts as well as sales, a commercial director.
Test the work, not the pitch. The CIPD’s guidance on selection methods favours structured interviews and skill-based assessment tasks. Ask candidates to review your pipeline and forecast, or to plan a territory.
We recruit permanent, interim, fractional, part-time and temporary sales leaders. To hire a sales director, see our interim sales director page, which also covers permanent hires; every brief gets a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
Questions people ask
Is a sales director the same as a head of sales?
Not quite. A head of sales runs a team day to day. A sales director usually owns the sales number for the business, sets strategy and targets, and leads several managers or teams. In a small company one person may do both.
What is the difference between a sales director and a CRO?
A chief revenue officer sits on the executive team and owns sales, marketing and customer success together. A sales director owns sales and often reports to the CRO. See our CRO recruitment page.
Who does a sales director report to?
Usually the managing director or chief executive. In larger companies a sales director may report to a commercial director or a chief revenue officer. See what a commercial director does.
What qualifications does a sales director need?
None is required. The Institute of Sales Professionals’ Sales Capability Framework sets out the capabilities for sales roles and is the basis of Ofqual’s sales qualifications. A track record of hitting targets and building teams matters most.
Can I hire a fractional or interim sales director?
Yes. A fractional sales leader works part of the week; an interim works full-time for a fixed period. See interim sales director and fractional head of sales roles.
How much does it cost to hire a sales director?
A permanent sales director is paid a base salary with commission or bonus; a fractional or interim one a day rate. Our sales director salary page sets out pay with sources. On every shortlist we set out each candidate’s pay or day rate.
How do I hire a sales director?
Write the brief around the number and the team, choose permanent, fractional or interim, and test candidates on your own pipeline or a territory plan. Our interim sales director page sets out the process; we send a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
