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What's the Minimum ASP Where Sales Development Makes Sense?

Posted by Matt Bertuzzi on Tue, May 17, 2016

It’s safe to say that the sales development function is here to stay. Companies, conferences, and careers are being built around the SDR movement. If your average sales price is $100K+, sales development is a no brainer. At $50K, it’s most definitely a yes. But what about $16K? Or $8K? $4K?

There are dozens of threads on Quora about sales development, but none directly answer the question:

What is the minimum ASP where “doing sales development” makes sense?

Even in our Inside Sales AE research and SDR research, we’ve never tackled this specific question. But by combining the two data sets, I think I’ve come up with a pretty good answer. You can follow my math below or skip to the end number here(Note: I’m not commenting on growth versus profitability. See Mark Suster, David Skok, and Danielle Morrill for that.) I’m trying to answer a more straightforward question. If I spend $250K on sales development, by how much should revenues increase?

To get there, we need to step through four questions.

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Topics: metrics, sales development

How LogMeIn Uses Personalized Sales Formulas

Posted by Trish Bertuzzi on Wed, Dec 02, 2015

Josh Allen is a sales leadership veteran. From inside sales rep to manager to EMEA sales director to current VP of Sales at LogMeIn, Josh has a track record of leading successful teams. We recently sat down to discuss how he thinks about and measures KPIs for his sales reps.

(Note: LogMeIn is a remote access software/SaaS company with a higher-volume, lower-ASP model.)

Josh and LogMeIn have departed from traditional (one-size-fits-all) sales KPIs in favor of customized metrics for each and every sales rep.

"We've tried cookie cutter KPIs – for example, everybody has to make 60 dials a day, create 5 new opportunities a week, etc.  But when you apply KPIs broadly across different sales teams, and try to graph it, you're going to have people who are on the high end and the low end. And very few people who are actually meeting the target."

Rather than apply uniform metrics, they decided to build a formula that would be as customized as possible to the individual sales rep. Using historical sales performance, they isolate that specific individual’s metrics.

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Topics: inside sales management, metrics

Participate in 2016 Sales Development Research

Posted by Matt Bertuzzi on Wed, Oct 21, 2015

Today, we launch our Sales Development research focused on teams generating pipeline (aka SDRs, BDRs, LDRs, etc.).

This is our sixth round of research, since 2007. The key themes we'll explore include:

  • Rep profiles: experience, tenure, ramp time, career path
  • Compensation: base, OTE, comparisons between roles
  • Quotas: pay on what, average quotas, % attainment
  • Technology: categories, adoption, impact

We worked hard to make this year’s survey easier and it will take roughly 6 minutes to complete. If you lead a Sales Development group, please participate

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Topics: metrics

Inside Sales Comp Calculator: Base Salary & OTE

Posted by Matt Bertuzzi on Thu, Mar 19, 2015

Over the last few months, we've published our 2015 research reports on the AE/ISR role (SaaS and non-SaaS versions).

Those reports provide closing rep compensation averages - both generally and broken down by several factors. A number of readers have emailed in to ask what base and OTE should look for them (based on geo, rep experience, ASP, etc.).

I've built a Inside Sales Comp Calculator to try to answer that. 

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Topics: metrics

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