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!