On domain knowledge-certainly its easy to teach what you do than teach how to sell. Always better to get a strong sales guy than the other way round. In the article I was reference the difference between one with industry knowledge and product knowledge.
Also, I feel like focusing on domain knowledge too narrowly can lead the hiring process astray. I think you are spot on regarding hiring for intelligence and acumen but I think it is a mistake to think that those attributes can only be found in those with domain knowledge. I can tell you that I knew nothing about video encoding before becoming Zencoder's head of sales and had it been a requirement, I wouldn't have been hired. We were able to grow that company rapidly to acquisition with only myself focused on sales.
My opinion is that a good sales hire should be 1. fully committed to learning your product inside and out and have the technical acumen to be able to execute on that. 2. Should think about sales the same way the engineering team think about product (test, iterate, listen,) 3. Should be able to sell themselves they way you want your product to be sold. Listen to how they talk about themselves in the interview. This is how they will sell your product.
re: winning deals vs generating deals: winning deals = generating leads + proposing a solution/pitch + dealing with contracting + get technical/architectural support from core team + following up on sales commitments.
Anything else?
Re domain knowledge: value of hiring smart reps> hiring reps with marketspace knowledge > hiring reps with product knowledge
Re how candidates carry themselves: one of the things to watch for is how they conduct themselves with customers. I have in the past taken candidates to networking events to get a feel for how they work in a social setting.
1) Sales vs BizDev - As described in the article the sales people he's looking for are great for one off transactions, not for building a real client base that will refer and keep coming back. Remember how you like to be sold, for bigger things most people want to know and trust the person they are buying from.
2) Domain Knowledge - which is easy to teach, sales or what you do? Hire a good salesman and teach them your business
The idea is sound and I've seen a number of startups go the wrong way with it, but those two stood out to me.