For sales managers, this is not an easy question to answer. The number of salespeople affects profitably by impacting both revenues and costs. It’s easy to estimate costs by looking at historical compensation, benefits, field support, and travel costs per salesperson. But it’s much more difficult to predict revenues, as it requires understanding how complexities such as customer needs, the economy, and the effectiveness of your and your competitor’s salespeople, influence a sales force’s ability to generate sales.
Does Your Company Have the Right Number of Salespeople?
The rules-of-thumb most companies use for this crucial decision often get it wrong.
February 26, 2013
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New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.