Sales Tool 29

Sales rep ROI.
Are you better off direct?

When does a sales rep pay for themselves? Model revenue attribution, commission cost, upside from new accounts, and the true ROI on rep investment at different adoption rates.

1Rep Cost Structure

Commission Rate (%)

Monthly Draw / Base ($)

Enter 0 for pure commission

Annual Samples / Collateral ($)

Territories / Trade Shows ($)

Total Annual Rep Cost ($)

2Revenue Attribution

Accounts Under Rep Management (#)

Avg Annual Revenue per Account ($)

Rep Attribution Rate (%)

% of revenue attributed to rep effort

3New Account Generation

New Accounts Opened / Year

Avg Yr-1 Revenue per New Account ($)

New Account Retention Rate (%)

Sales Rep ROI-

Annual
Rep Cost

Rep-Attributed
Revenue

ROI
Multiple

Rep P&L

Total attributed revenue-

Commission on attributed revenue-

Draw / base salary-

Samples + collateral-

Territory + trade shows-

Total Rep Cost-

Gross margin on attributed rev-

Net Value of Rep (GM − Cost)-

New Account Pipeline

Yr-1 revenue from new accounts-

Yr-2+ revenue (retention)-

3-year account value-

Sales rep ROI.Are you better off direct?

Sales rep ROI.
Are you better off direct?