What is the best way to track outside salespeople?

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Someone on Quora recently asked this question, here are my thoughts on the subject:

TL;DR: Track performance, not the location of your reps – you pay for their performance not their time.

Two questions to ask yourself:

  1. Are my outside sales reps hitting their performance targets?
  2. Do I trust that they are acting in the best interest of the company?

If the answer to both is Yes, congratulations, you have nothing to worry about.  The whole point of paying salespeople on commission is that you’re paying for RESULTS not TIME. 

If the answer to question #1 is no, then tracking their key performance metrics (calls/day, meetings/day, etc…) makes sense. The best way to determine what’s important to track is to take their monthly quotas and work backwards. 

EXAMPLE: If you’re reps have a $100k per month target and an average sale of $10k, they’ll need 10 sales per month to make their quota. 

If it takes: 10 meetings to get a sale & 5 calls to get a meeting, they’ll need: 100 meetings per month & 500 calls per month.

Based on a 21 day work-month, they’ll need to make: 4.7 meetings & 23.8 calls per day to hit their quota and earn you $100k in monthly revenue ($1.2 Million annually). 

If the answer to #2 is no, then fire them. You can’t let people you don’t trust be responsible for the financial health of your company.

  • Kayla Kozan

    Wow. Classic case of, “if the technology exists, I need it.”

    I’m on your side – better to address the root problem than pour money into tracking the consequence.

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