Sales Rep ROI Calculator
When does a sales rep pay for themselves? Model revenue attribution, commission cost, upside from new accounts, and the true return on rep investment.
How rep ROI is calculated
- Attributed revenue: accounts under management times average revenue per account times the share you credit to the rep.
- Rep cost: commission on attributed revenue, plus 12 months of draw, samples and collateral, and territory or trade show costs.
- ROI multiple: attributed revenue divided by rep cost. Net value compares your gross margin on that revenue with the rep cost.
- New accounts: year 1 revenue, then retained revenue in years 2 and 3 at your retention rate.
A revenue multiple can look healthy while net value is negative. Check net value at your real gross margin before deciding between a rep and selling direct.
Keep going
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