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Salesperson ROI - How Long Must They Stick to Pay Off? Part 1
| Guest post by: Dave Kurlan |
Article Overview: Is there a connection between sales success and tenure? Is it really a given that a successful salesperson will stick around longer than an unsuccessful salesperson?
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Free Download - Sales Courage and Resilience By Dave Kurlan |
Salesperson ROI - How Long Must They Stick to Pay Off? Part 1
Is there a connection between sales success and tenure? Is it
really a given that a successful salesperson will stick around longer
than an unsuccessful salesperson?
There are other factors, like
the compensation program. Will an unsuccessful salesperson who is
compensated mostly by salary stick around longer than a similarly
unsuccessful salesperson who is compensated mostly by commission?
Does their role factor in? Will an unsuccessful account manager hang around longer than an unsuccessful hunter?
How
about sales management? Will an unsuccessful salesperson who is either
closely managed or pressured to perform, hang around longer than a
similar salesperson who is not closely managed and not pressured to
perform?
Let's say you have a 12 month sales cycle and an 8
month learning curve. Essentially, it will take nearly 2 years to get
your new salesperson producing consistently. In that 2 years, maybe
you'll pay out close to $150,000 in subsidies.
Using your average margin, how much revenue must be gemerated to offset that subsidy?
How much revenue much be generated to produce a satisfactory ROI?
How long must the salesperson stick around in order to produce that ROI?
If we can predict longevity, does that help you determine whether you will realize a ROI with a sales candidate?
Objective Management Group
has the raw data and plan to mine it to provide answers to these
questions. Look for my findings in the next several days in Part 2 of
this installment. [UPDATE - Click here for the Top 5 Factors That Predict Sales Longevity]
In the mean time, what do you think? Can you identify any other possible variables?
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Article Tags: compensation program, learning curve, longevity, management group, mean time, objective management, raw data, salary, sales management, sales success, subsidies, subsidy, successful salesperson, target, tenure, variables
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About the Author: Dave Kurlan RSS for Dave's articles - Visit Dave's website Click here to visit Dave's website   Predict Sales Turnover Salesperson Selection Visual Pipeline |
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