Ignoring the decision to replace that mediocre sales rep is costing more than you think. With so many below target salespeople hanging on, maybe its time to analyze what the cost is.
Let us assume an intermediate salesperson with a quota of $1,000,000 and a draw of $60,000. Let’s further assume that they’re at 50% of target — which might be optimistic.
A lot of managers put wasted leads or lost customers at the bottom of the list. That’s a mistake. With competition growing from every corner, good leads are expensive. Assume losing two customers or deals at $120,000 to the company.
And the rep missed out on $500,000 in quota that the right hire would have made. Assume a 66% gross margin or $300,000 missing from your bottom line.
Training — $10,000.
Overhead — supplies, infrastructure, admin — $18,000.
Benefits — $12,000
Severence — one month + HR/Legal — $10.000
Base comp — 12 months $60,000
Hiring — in-house or outside help time, costs — $20,000
Lost: $550,000
And then of course, managers always spend more time trying to train a failing rep.
The AAPS Profiler Sequence avoids all these costs — and saves you time. All for less than half a month’s draw. And we guarantee it or it doesn’t cost you a nickel.
