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Quota questions

    • 21 posts
    October 28, 2007 1:58 AM EDT
    I have some questions about setting quota for my first salesperson. In this thread, I`d like to just focus on whether or not the plan below is achievable without being too far over/under the bar.

    Assumptions: I can afford to hire someone who has some experience in sales but not a ton of experience. I will, in all likelihood, be this person`s 2nd or 3rd sales job in a 2-3 year time period. This will be someone who has sold software or tech-related products in the past.

       1. Market: small to mid-size companies
       2. Average sales price of $2500
       3. 6-week sales cycle
       4. Happy customers will re-purchase 1x per year
       5. I will support the salesperson with conferences and advertising but much of the lead generation will be their responsibility.

    Here is my estimation of my first sales-person for talking to new people:
    A salesperson making contact with 25 new people per day (email/phone) should be able to book 5 follow-up calls in a week. Five follow-up calls should produce one sale for $2500.

    Given the scenario above, I have specific questions that I`m trying to work through:

       1. Is my plan just right? too low? too high?
       2. What about expecting a salesperson to talk to 25 new people per day?
       3. Talking to 125 people per week, is getting 5 follow-up calls unrealistic or too low?
       4. Closing 1 sale for every 5 follow-up calls (20%) - too high? Go with 10%? 15%?

    I know that you know nothing about my product/company/market so this makes it impossible to tell whether my assumptions are correct but I appreciate any general feedback/advice.
    Thank you for any help!
    angola2007-10-28 7:5:55