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Insights Executive Recruitment3 min read

Commercial Director vs Sales Director

The two titles are used interchangeably and mean different things. The distinction is not seniority — it is whether the problem is winning revenue or the terms revenue is won on.

Two senior commercial leaders reviewing a plan

In short

A Sales Director owns the revenue plan, the sales function and the forecast — how much gets sold and by whom. A Commercial Director owns the terms revenue is won on — price, margin, contracts, partnerships and bid strategy. Recruit a Sales Director when the problem is not winning enough; recruit a Commercial Director when the problem is not making enough from what is won.

In the UK market these two titles are frequently treated as the same job at different prices. They are not. They answer different problems, attract different people, and fail for different reasons.

The confusion is understandable — in a business of forty people one person often does both. The cost appears when a business recruits one title while describing the other, and then judges the appointment against expectations that were never in the brief.

The difference in one table

DimensionSales DirectorCommercial Director
Primary questionHow do we win more?On what terms do we win?
OwnsRevenue plan, sales team, forecast, coveragePrice, margin, contract terms, partners, bids
Judged onRevenue against plan, forecast accuracy, team performanceGross margin, quality of contracts, commercial discipline
Typical backgroundCareer sales leadershipSales, bid, pricing or commercial management
Fails whenPipeline and team management are neglected for personal sellingAccountability for margin exists without authority over price
Comparing the two remits

Where the two genuinely overlap

Both roles are accountable for revenue outcomes. Both need to understand pipeline, customers and competitive position. Both should be able to run a negotiation and read a P&L. In practice, a strong candidate for either role can usually do a competent version of the other.

That is precisely why the brief has to be specific. Two capable executives can perform the same title very differently depending on what they believe they were hired to fix.

How company size changes the titles

  • Under roughly £5m turnover: one commercial leader, whatever the title, usually owning both selling and terms. The title reflects preference more than remit.
  • £5m–£20m: the split starts to matter. Many businesses appoint a Sales Director first and discover a commercial governance gap eighteen months later.
  • £20m+ or multi-route businesses: the roles typically separate, with a Commercial Director owning the framework and a Sales Director owning the function.
  • Group structures: Commercial Director often carries cross-divisional pricing and partnership accountability that no single Sales Director holds.

Choosing between them: three diagnostic questions

  1. 01Is revenue below where it should be, or is profit below where revenue should have put it? The first points to sales; the second to commercial.
  2. 02If you won every open opportunity at current terms, would the business be in good shape? If yes, you have a sales problem. If no, you have a commercial one.
  3. 03Who currently decides price, and does anyone govern the exceptions? If the honest answer is 'whoever is in the room', that is a commercial gap regardless of how sales is performing.

When the answer is both

Some businesses genuinely need both, and cannot carry both permanently. The usual sequence is to appoint the one that addresses the more urgent problem full-time, and meet the other requirement through an interim or fractional engagement until the revenue supports a second appointment. That is a considered structure, not a compromise — provided the boundary between the two is written down before either starts.

What does not work is appointing one person and quietly expecting both remits. The role becomes unmanageable, and the first thing to be dropped is usually the commercial discipline, because it is the part with no weekly number attached to it.

Discuss a Commercial Director requirement

Permanent, interim or fractional. The conversation starts with what the role must own — price, margin, terms and partners — rather than with a job title.

Related services

Written by

Tom Evans

International Sales & Market Development Director, Evans Sales Consultancy

Published 17 September 20263 min read

Common questions

  • Neither is inherently senior. In businesses where both exist, the Commercial Director usually sits wider because pricing and partnership accountability span more of the business — but a Sales Director on the board can be the more senior appointment.

  • Frequently, yes — particularly where they have already carried pricing and contract responsibility. The gap to test for is comfort with margin analysis, contract terms and partner economics rather than with selling itself.

  • It is a common and workable structure. The alternative — both reporting to the Managing Director with a clear split of authority — works equally well. What fails is leaving the reporting line ambiguous.

  • Ranges overlap substantially and depend on sector, scope, location and whether the role sits on the board. Scope of accountability is a better predictor of package than the title itself.

  • Both remits are routinely delivered fractionally, which suits businesses that need senior commercial thinking without justifying a full-time appointment yet.

Still working out the right approach?

If your question is specific to your company, product or target market, we can help you work through the commercial options.

Discuss your market entry

More opportunities. Better conversion. Stronger sales. More revenue.

If your business could sell more than it currently does, the fastest way to find out why is to look at the numbers together.