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16 Responses to “Go to Market Strategy – The Cost of B2B Direct Selling”

  1. A fairly good summary of the costs of a sales rep and the cost of the non selling time.

    I would say that this doesn’t take into account win rate (or loss rate). If a sales rep wins 50% of all the deals they work, then the cost per won deal goes up. In your assumptions you used 8 deals per year, it likely would have had to work 16 deals with a 50% win rate.

    Sure, some of those deals would be ‘abandoned’ before the full time investment – but there would still be a cost associated with those.

    Finally, a realistic view on today is that the sales rep is likely doing more than 10 hours per day – often doing a lot of the admin work on weekends. Heck, a badge if honour at Cisco is having sales update forecasts and funnel activity on Sundays for the Monday sales call.

    The much touted CRM systems seem to create more questions from management sucking up more sales time than they purportedly save. Irony of all ironies.

    Lastly, only a small percentage of sales reps exceed quota. What is the total cost to the company for those not making quota?

    Point of these comments was to reinforce your argument showing you wer very conservative.

  2. What an excellent post. Great insights for sales people.

  3. A big pivot point needs to be the expectations around hunter vs. farmer vs. a combined role. The ROI comes out better in many cases if farming (maintaining loyalty, growing and even gaining references from) a sizeable & profitable existing customer business, as I think it most cases, it’s hard to rationalize the cost of hunting, getting those 8 (brand) new deals per year…

Trackbacks/Pingbacks

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