Revenue Drag
Revenue Drag is the compounding cost of the wrong people occupying productive sales seats.
The question it answers
How much money are we leaving on the table with each current rep?
Use it when
There's a large disparity in revenue generated between reps.
You're not sure what the actual potential is for each sales seat.
Reps who once performed are no longer hitting quota.
It’s the wrong tool when
Sales metrics aren't tracked.
The comp is commission only and there's no lead flow.
There aren't enough leads for all the current reps.
The three layers
1
Base salary paid against missed quota
2
Marketing spend generating leads the rep fails to convert
3
Opportunity cost of the revenue the seat should have produced
The invisible 80%
The visible cost of a bad hire (salary paid against missed quota, recruiting fees) represents roughly 20% of the actual damage. The invisible 80% includes burned prospects who will never buy again, management hours spent on performance plans instead of growth, marketing spend generating leads that closed at half-rate, and top performers who left because they grew tired of carrying the bottom 50%.
“Every month a bottom-50% rep stays in a seat, they’re not just missing quota, they’re occupying it.”
Where owners get it wrong
Without metrics to track performance across the board, it's easy for owners to fixate on behaviors they don't like, but have nothing to do with results. They can also fall into liking reps who may be friendly or easy to get along with, but don't deliver more revenue.
What you walk away with
A plan to accurately measure performance across your team and determine who is costing you the most revenue. The amount lost for each underperforming rep will make the corrective action that much easier to take.
Related frameworks
Put a number on your Revenue Drag.
The Sales Team MRI shows which reps are earning their seat and which ones are costing you. One session, using the assessment I've run on 10,000+ candidates. Free for $2M to $20M businesses.
