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Sales Productivity

Sales productivity is defined as the cost to acquire a certain amount of gross profit, with the lion’s share of expenses directly related to personnel costs, both fixed (salary, car allowance, benefits, etc.) and non-fixed (liability costs, etc.). Building an internal sales organization takes significant investments in time and money. The hiring of a lead sales executive can easily take six months, with additional delays in the hiring of the sales representatives and sales support staff, and the creation of operating procedures, training programs, and sales tools. The natural sequence of this approach represents a twelve to thirteen month ramp-up to sales traction from initiation. And when one considers that the average direct sales representative costs 2.5 times his or her pay, it is therefore mission critical that the sales representatives as well as their sales support team are managed effectively to ensure that the “burn rate” does not exceed sales revenue.

Employing the Sales Accelerator System®, SalesForce4Hire® has demonstrated a proven, successful track record in the rapid deployment of highly trained, focused, and motivated sales professionals. The initial impact of contracting with SalesForce4Hire is an eight to nine month improvement in ramp-up to sales traction with a correlating savings in investments to generate first dollar revenue.

According to extensive research conducted by Erin Anderson, Ph.D. and Bob Trinkle and published in their 2005 book “Outsourcing the Sales Function; The Real Cost of Field Sales” the average direct employee sales professional is in front of prospects for an average of two to three hours per day. In addition, they are actually operating “in the field” for 132 days in any given year. An analysis of historical engagements by SalesForce4Hire indicates that the use of the Sales Accelerator System dramatically improves both time in front of prospects and overall time “in the field”. This results in a minimum 100% improvement in productive engagements.

When you combine the long ramp-up time of traditional sales organizations with the average face time in front of prospects, a team of ten sales representatives will each contribute twelve “Face-to-Face” sales days (eight hours of sales time in front of qualified prospects) by the end of the first twelve months. The cost of deployment results in a greater than $8,000 per “Face-to-Face” sales day contributed at the end of the first year. SalesForce4Hire’s speed of sales deployment in combination with the increase in real sales productivity through the Sales Accelerator System delivers dramatic improvements in tangible sales activities. At the end of the first twelve months, this approach elevates “Face-to-Face” sales days contributed per rep to 61 days; lowering the real cost of sales to about $2,000 per “Face-to-Face” sales day. The net effect of SalesForce4Hire is a 500% improvement in real sales activities within the first twelve months of go to market initiatives.

 

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