20Sales: The Best Sales People Are F***** in the Head | The Unspoken Truths All Sales Leaders Need to Know in 2026 | Why Europe is a Nightmare for Recruiting | How to Improve Sales Team Performance in 24 Hours with Chad Peets
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
Chad Peets, one of the most respected sales leaders of our time, delivers his signature no-nonsense insights on building world-class sales organizations in this hard-hitting episode. Currently leading sales at xAI while advising companies like Sigma Computing and Augment Code, Peets doesn't hold back on the harsh realities of enterprise sales recruiting, team performance, and leadership. (04:53)
- Core themes include the evolution of sales talent requirements, the critical importance of hiring for grit over experience, and why remote work fundamentally doesn't work for inside sales teams
Speakers
Chad Peets
Chad Peets is currently leading sales operations at xAI, the AI company founded by Elon Musk, while serving as an advisor and board member to multiple high-growth companies including Sigma Computing and Augment Code. Previously, he was instrumental in Snowflake's sales transformation and served as a Managing Director at Sutter Hill Ventures. Known for his direct, results-driven approach, Peets has built a reputation as one of the most effective sales leaders in enterprise technology, with a track record of turning around underperforming teams and scaling organizations from startup to billion-dollar valuations.
Key Takeaways
Hire for Obsession, Not Just Talent
Peets emphasizes that the best salespeople are "a little fucked in the head" with an obsessive drive to succeed. (12:12) When he wakes up at 3 AM, his first conscious thought is about work - and he needs team members with that same relentless focus. During interviews, he asks candidates about their passion and what drives them, looking for people who want to be the best in the world at their craft rather than those who work simply to fund other interests. This obsession cannot be taught and separates A-players from everyone else.
Track Record of New Logo Acquisition Is Non-Negotiable
The most critical qualification for any sales hire is a demonstrated ability to close net new accounts, not upsells or inherited customers. (17:55) Peets immediately ends interviews if candidates can't provide specific examples of new logos they've brought in. At startups, salespeople receive accounts that have never heard of the company, making new customer acquisition the fundamental skill that cannot be taught. Everything else - deal size, domain expertise, technical knowledge - can be developed with proper leadership and enablement.
Fire the Bottom 10% Every Year
High-performing sales organizations should maintain 25% total attrition, with 10% coming from firing underperformers. (29:38) This isn't about creating a culture of fear - it's about maintaining standards that keep A-players engaged. When top performers see mediocre colleagues getting away with poor results, the A-players leave. Companies that proudly announce low firing rates are actually signaling they don't hold anyone accountable, which drives away the best talent and creates a culture of mediocrity.
Inside Sales Must Be In-Office, Field Sales Must Be Distributed
Remote work has specific applications in sales that many companies get wrong. (26:52) Inside sales teams need to be physically present with their managers five days a week for effective coaching, training, and performance management. However, field salespeople must be distributed geographically to be close to their accounts and customers. The key is matching the work structure to the role requirements rather than applying blanket remote or in-office policies.
Measure Beyond Quota Achievement
Quota attainment alone is insufficient for measuring sales performance because quotas can be set incorrectly. (28:43) Effective measurement includes new customer meetings, conversion ratios, travel activity, and steps completed in the sales process. A rep can hit 130% of quota through luck with one large deal while still being someone you'd want to fire. Comprehensive measurement provides the data needed to identify real performance issues and coach effectively rather than relying on potentially misleading quota numbers.
Statistics & Facts
- Sales organizations should model 25% total attrition annually for scaling companies, with 10% from firing underperformers, according to Peets' experience across multiple high-growth companies. (29:38)
- The minimum productivity standard is 3x OTE (On-Target Earnings) in new ACV per sales rep - if reps aren't generating at least three times their total compensation in new revenue, the unit economics don't work. (35:18)
- Peets expects his average rep productivity to increase by 20% year-over-year, then adds another 20% buffer when setting quotas to ensure not everyone hits their number. (38:03)
