How do we compare on sales team RoI?

Run a very simple litmus test.

  • Take the total revenue budget that you hold the sales team responsible for delivering
  • Apply a cost-of-goods gross margin conversion ($GM)
  • Take your total cost to company to fully mobilise the sales team – fully loaded – wages, super, car, travel disbursements, incentives, training, conferences, etc. ($CtM)
  • Divide $GM/$CtM
  • Compare your ratio to the cross-industries typical norm , being 10:1

Whatever your comparison looks like … don’t get too carried away.  This is a rather blunt litmus test.  It should be used to ask further questions, rather than derive answers or actions.