This is a question that could be answered in many ways because each company has their own way attributing costs associated with sales. I am not going to give you an answer, but will provide insight into costs that are often overlooked in this calculation.
This is a question that could be answered in many ways because each company has their own way attributing costs associated with sales. I am not going to give you an answer, or a spreadsheet to calculate the answer, but will provide insight into costs that are often overlooked to help you identify what your real costs might be.
How much does it cost to hire a salesperson? There are many pieces to this question you need to think about before answering.
Hiring isn’t just about the salary and benefits associated with a role, but you need to factor in the staff time for reviewing resumes, scheduling interviews, conducting interviews, debriefing on interviews, and negotiating offers - all time that is not being spent prospecting or selling your goods or services. That doesn’t include the costs to run ads on job boards, membership dues to trade organizations, or the licensing fees for your candidate management system. Once they are hired the staff costs don’t go away, there is time spent onboarding new hires, training them on your tools, processes, technology - again time your team is not prospecting or selling.
There are also some very hard costs associated with onboarding a new salesperson, hardware like a phone, laptop, desk, tablet, etc. and licensing fees for your CRM, marketing automation, prospecting tools, and industry trade memberships.
Now that they are trained, onboarded, and ready to go you start to incur costs for trade shows, travel, entertainment, and more training - which is not only the fee for the course, but the time to attend the course.
There are other factors involved that I haven’t mentioned here, but this is a blog post and not a novel, and these are often the pieces that are not factored into the equation for determining costs to close a sale. Add up all these costs against the sales your team is generating, are you seeing the ROI you expected? If the answer is “no”, how can you improve the ROI for your organization?
Some of the answers to improving your ROI are simple:
If any of this makes sense to you and you think there is an opportunity to improve in your organization, contact us, you want to see results fast, that means not taking time away from your staff to develop and implement a plan, leave that to the experts. Having an external team of experts evaluate, process, design, and implement what works for your organization will pay for itself as you see the results of closing deals faster, also improving the ROI of sales team.
Published by Rich Rutherford on