Rule 28 – If your territory shrinks, so will your earnings

Here is a general equation for earnings: Earnings = (Territory X Time) / Quota. Yes, it is over simplified but there is a definite relationship between potential earnings and the size of your territory. Normally, the larger the territory the greater the number of inherent opportunities. More opportunities means better odds of making your sales target. You can follow the logic.

All Sales Reps desire a large territory and a small quota. Manage them well and your earnings grow. Of course, the opposite is likely true too.

 

 

 

 

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  1. Rule 92 – Your odds of winning that surprise RFP fall proportional to its size, starting at 25%.

Comments

  1. Anonymous says:

    Shrinking territories are a part of working in sales, exoect it. The first time it happend to me my income shrank by half. I worked my butt off to rebuild the terrioty, then I found a better job or so I thought. The grass is not always greener.

  2. Moderator says:

    Yep, part of my point in this rule is the inevitably of shrinking territories. Like the sun rises and sets, territories shrink and quotas rise.

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