How Many Salespeople Should I Hire?

One of the most asked questions I get is how many sales people does it take to get the revenue numbers needed. Personally, I believe in large sales forces because in highly competitive situations the largest army wins. That doesn't mean, however, that you can go out and hire 100 sales people if all you can possibly sell this year is a million dollars if everything goes right. So how do you decide how large a staff you need?

The first thing to do is to determine how much revenue you want. I say want because your present staff is getting you what you have and will be only able to grow so much. But if you want to double or triple your sales you will have to increase the number of people selling. It's just a fact of life. So let's say you are billing $2.5 million and want that to grow to $4 million. Your typical sales compensation is 10% commission so your potential commission pool will be $400,000. Next determine what the average sales person in your business should make. One rule of thumb I've used for new sellers is compensation for a 2 year professional just starting out. Let's say $55,000 per year. Well dividing your commission pool ($400,000) by your compensation target ($55,000) would tell you that you need 7 sellers on staff to get to $4 million. What's that you say? You only have 4 sellers and they are making a little more than $55,000? That's right and that's why you are doing $2.5 million. And you will do $2.5 million give or take a few hundred thousand until you hire those extra 3 salespeople.

Of course, the numbers given here are for example only and may differ in your situation. We can calculate the number of sellers in almost every business, however, so call me if you want to discuss your particulars.

Now how much do you want to sell? We can calculate that too but I'll save that for another column.

Mike Shannon is the owner of Shamrock Business Coaching, a coaching practice that helps business owners increase profits. You can visit Shamrock Business Coaching on the web at: http://www.ShamrockCoaching.com.

In The News:

How Sales Managers Should Use the 5 Most Important Sales Reports  Business 2 CommunitySales reporting is essential for every data-driven company. These reports don't just make your Monday morning meetings more informative; they make your ...
Alexander Group Publishes “The Front-Line Sales Manager Field General”  Business WireExplore the Front-Line Sales Manager role and how its adoption is helping sales leaders shift their organizations into higher seller performance.
Michigan Radio is hiring a Director of Corporate Support  Michigan RadioJob Summary: Michigan Radio is accepting applications for a Director of Corporate Support. Michigan Radio is a public media *service* of the University of.
CleanBrands adds Linda Bill as VP/sales, North America  Hotel ManagementHotel Management has learned industry veteran Linda Bill has been named to the newly created position of VP/sales, North America at mattress-encasement ...
The 3 values of great sales people  Nursery ManagementPut on your C.A.P. and evolve as a leader in salesADOBE STOCK.
Re-Think Your Sales Approach - Part Two  Printing ImpressionsHow are your sales efforts going? If you're not happy with your results, there are three main areas to consider.
3 Things HubSpot's Management Wants Investors to Know  Motley FoolManagement for the cloud-based marketing software and services company offered details on subscription revenue, international sales, and buying habits.
Mills CNC appoints new regional sales engineer to meet growing demand  PES MEDIAMills CNC business manager Peter Smith (left) pictured with new regional sales engineer Mark Hone at Mills CNC's Technology Campus in Leamington.
Funnel Metrics announces Funnelocity on Salesforce AppExchange, the world's leading enterprise apps marketplace  GlobeNewswireSalesforce customers can now benefit from Funnel Metrics' next-generation Sales Management application to identify, measure and score key selling attributes ...
36 Job Openings In Hatboro-Horsham Right Now  Horsham, PA Patch36 Job Openings In Hatboro-Horsham Right Now - Hatboro-Horsham, PA - Check out the latest openings. Search hundreds of new jobs in ...
How To Win More Deals With Better Sales Prospecting Automation  Business 2 CommunityRecently I participated in an interesting discussion on the #Digital360Chat Twitter Chat hosted by Bernie Fussenegger around the idea of sales & marketing ...
San Diego Kimpton appoints new group sales, meeting managers  Hotel ManagementSan Diego's Kimpton Solamar Hotel appointed Rosaline Verhoog as group sales manager and promoted Crystal Wagner to executive meeting manager of the ...
President Duterte's governance is akin to the job of a shrewd sales manager  Manila BulletinOPINION AND OPTION. By ELINANDO B. CINCO. Elinando B. Cinco. “Foremost of all, always strive to sell your products to a huge number of consumers and ...
Sennheiser reveals new Pro Audio Solutions Channel team  Audio Media InternationalSennheiser has announced several changes within its Pro Audio Solutions Channel with the forthcoming retirement of John Falcone (pictured left), the ...
Steven Tuzzolino Joins Sunwing as Sales Mgr for Quebec  TravelPulse CanadaSunwing has announced that Steven Tuzzolino has joined the company and will take up the new position of Sales Manager for Quebec.
GPC 2018 Sales Up 14.7% | 2019-02-19  Modern Distribution ManagementGenuine Parts Co. (NYSE: GPC), Atlanta, GA, reported 2018 sales of $18.7 billion, up 14.7 percent from the previous year. Profit increased 31.5 percent over the ...
Sales People/Manager Churn Is Unacceptable!  Business 2 CommunityOver the past several weeks, I've been involved in a number of conversations with colleagues and sales execs. Inevitably, we touch on the sad state of affairs on ...
House Beer - Area Sales Manager - Brewbound.com Craft Beer Job Listing  Brewbound.comJob Description. House Brewing, Inc (House) in Venice, CA is looking for an Orange County Area Sales Manager to help their Sales and Marketing Team.
CPQ Success Secrets Video 2 – How to Select the Right CPQ for Your Business  Business 2 CommunityIn the CPQ Success Secrets video series, DealHub CRO and Co-Founder Eyal Orgil answers real questions from our clients about CPQ. In video 1, we defined ...
Sales Manager (South Korea)  OilVoiceSales Manager Overview Our client is a world-leading manufacturer with exposure to the automotive, aerospace, power generation and renewable energy ...
Mumbrella reveals series of new hires and promotions  mUmBRELLA*Mumbrella has announced a series of new hires and promotions as the company continues its expansion under new owner Diversified Communications.
Regional Sales Manager North West - Drinks job with Global Brands Limited | 794576  The GrocerGlobal Brands is an independent drinks company which owns, markets and distributes an enviable collection of products across the UK and Internationally.
ESL Vision Announces New Southeastern Regional Sales Manager  LEDs MagazineSALT LAKE CITY, UTAH—February 4, 2019—ESL Vision, a cutting-edge manufacturer of innovative LED lighting solutions, is pleased to introduce Sharon ...
Press Release: Modern-day sales management is a lost art and discipline says Rob Macpherson  PRWireThe art of effective sales management is rapidly being lost as a discipline with many modern-day sales managers unable to understand that it's an action role, ...
Sennheiser announces new Pro Audio Solutions Channel team  PSNEuropeLong-serving SVP of Global Sales for Pro Audio Solutions, John Falcone, is stepping down, and Mark Posgay has taken up his position, also announcing a ...
Carriage Services Announces 2018 Annual Results and Reaffirms 2019 Rolling Four Quarter Outlook  GlobeNewswireHOUSTON, Feb. 20, 2019 (GLOBE NEWSWIRE) -- Carriage Services, Inc. (NYSE: CSV) today announced results for the year ended December 31, 2018, shown ...
Nor-Lake Names National Sales Manager  Foodservice Equipment & SuppliesNor-Lake hired Dan Muldowney to serve as national account manager.
Murata Machinery Hires North American Sales Manager for Fabrication Products  Modern Machine ShopJeff Tyl will be Murata Machinery USA's new North American sales manager for fabrication products. Mr. Tyl has over 12 years of fabrication management ...
Audiofly appoints new international sales manager  Appliance RetailerTo support global growth plans. Australian headphone brand, Audiofly has appointed a new international sales manager, Ian Seaman, who will replace Matt ...
Tuxton China, Inc. Appoints New Western Regional Sales Manager  RestaurantNews.comWalnut, CA (RestaurantNews.com) Tuxton China Inc. has announced the appointment of Pamela Perkins as Western Regional Sales Manager effective ...
Lawo opens UK subsidiary, announces appointments  TVBEuropeGerman broadcast manufacturer Lawo has opened a UK subsidiary and appointed systems engineer Kadhim Boyd, solution architect James Walker and sales ...
Eight questions to… Mark Ballance, general sales manager, McLaren Leeds  AMMark Ballance, general sales manager, Parks Motor Group, McLaren Automotive Leeds, on working your way to the top.
Top Trump appointees promoted selling nuclear power plants to Saudi Arabia over objections from national security officials, House Democratic report says  The Washington PostKey members of the Trump administration pushed a plan to sell nuclear power plants to Saudi Arabia in the months after the inauguration despite objections ...
Rutgers expanding beer, wine sales at select sporting events  Newsday(AP) -- Rutgers will expand beer and wine sales at sporting events starting this fall.The university says the sales will be increased at department-managed ...
Aldermore and Keystone make senior distribution appointments  Mortgage SolutionsAldermore has appointed Nick Parker as head of intermediary distribution within its retail mortgage business. Parker (pictured) joins from Bank of Ireland and will ...
Lloyds closes the advice gap in sales push  FT AdviserLloyds as part of its tie up with Schroders is looking to hire 700 financial advisers and nearly double its assets under management from 13bn to 25bn.
Blackmores: Interim result 2019  Intelligent InvestorBlackmores has been one of the market's 'China stocks' for years; yet in the latest half direct sales to China fell 11%. Investors panicked, prompting a 25% fall in ...
What Is Sales Enablement? 10 Industry Experts Explain  G2 CrowdIn a perfect world, all of a company's departments would work in-sync without any lapses in productivity or communication. Every customer would feel completely ...
Jaguar Land Rover Is Headed for a Cash Crash  BloombergSpending has gotten out of control despite underwhelming sales. Management needs to show it can be reined in.
Your Small Business Roadmap for 2019 CRM Success  Business 2 CommunityYour patrons have shared their data all last year through clicks, subscriptions, customer *service* requests, sales inquiries and more — and now expect your ...
McLeod Health Clarendon announces new Community Advisory Board member  Manning LiveBy Carrie Anna Strange. McLeod Health Clarendon is pleased to announce a new member to the hospital's Community Advisory Board. Elaine Elmore, a native ...
Five SolarWinds Leaders Recognized as 2019 CRN Channel Chiefs  GlobeNewswireDURHAM, N.C., Feb. 20, 2019 (GLOBE NEWSWIRE) -- SolarWinds MSP (NYSE:SWI), a leader in delivering comprehensive, scalable IT *service* management ...
Volvo UK announces changes to senior leadership  Business LeaderVolvo Car UK has appointed Mark Cox to the position of National Sales Manager with immediate effect.
'Constant Hunger Games': Ex-staff reveal truth of Victoria's Secret  The AgeWhen Chloe Bosch and her friends started working at Victoria's Secret glitzy new flagship store last year, they couldn't have been more excited. It didn't last.
Savosolar Plc's financial statement release for 2018: Revenue increased significantly, operating result still negative  NasdaqSavosolar Plc Financial Statement Release 20 February 2019 at 3:00 p.m. (CET). Savosolar Plc's financial statement release for 2018: Revenue increased ...
35 Job Openings In Levittown Right Now  Levittown, PA Patch35 Job Openings In Levittown Right Now - Levittown, PA - Check out the latest openings. Search hundreds of new jobs in Levittown.
Should I Hire a Virtual Sales Team?  Business 2 CommunityThe answer? Well, it depends. A virtual sales team and an in-house sales team are both designed to manage your company's sales operations. However, there ...
Are you ready to be a manager?  Fast CompanyMoving from being an individual contributor to being a manager is really a career change, not a promotion.
Data Reveals Missing Accountability Traits in Sales Leaders  Business 2 CommunityStatistics abound about the abysmal state of quota attainment by salespeople. We've all seen the numbers. Of course, the data varies based on whose report ...
Analysts Await Artisan Partners Asset Management Inc (APAM) Will Announce Quarterly Sales of $178.25 Million  BharataPressBrokerages expect that Artisan Partners Asset Management Inc (NYSE:APAM) will report sales of $178.25 million for the current fiscal quarter, Zacks reports.
Spagnolli appointed Zünd Sales and Channel Manager for North America  Graphic Arts MagazineZund America (Franklin, Wisconsin) has announced the appointment of Scott Spagnolli to the position of North American Sales and Channel Manager, ...
GLICO LIFE insurance appreciates, rewards outstanding sales staff  Myjoyonline.comGLICO LIFE, a major life insurance company has rewarded its outstanding individual life sales staff at a nationwide sales congress held in Accra.
Johnson & Johnson (JNJ) Management presents at CAGNY Conference (Transcript)  Seeking AlphaJohnson & Johnson (NYSE:JNJ) CAGNY Conference February 19, 2019 9:00 AM ET Company Participants Alison Lewis - Global Chief Marketing Officer Paul ...
$178.25 Million in Sales Expected for Artisan Partners Asset Management Inc (APAM) This Quarter  Fairfield CurrentBrokerages expect Artisan Partners Asset Management Inc (NYSE:APAM) to announce sales of $178.25 million for the current quarter, according to Zacks ...
Sennheiser Introduces New Pro Audio Solutions Channel Team  Sports Video GroupSennheiser has announced several changes within its Pro Audio Solutions Channel with the forthcoming retirement of John Falcone, Sennheiser's ...
Reverie Promotes Nick Colello to Oversee Expansion of Sales Training Program  Furniture World MagazineReverie announced that it has enhanced its dealer training program with the promotion of Nick Colello to national director of sales training. In his new post, ...
WV MetroNews Cost of bill to lower buck limit could be steep  West Virginia MetroNewsCHARLESTON. W.Va. — Legislation aimed at lowering the number of bucks hunters in West Virginia can kill from three to two would come with a hefty price tag.
Drafting the Quarterback: How the Right Platform Can Lead Your Team to Success  Industrial DistributionAny strong quarterback would agree: Trust and belief in your team creates better performance.
Amundi Germany expands management  Investment EuropeWith immediate effect Andreas Steinert, head of Third Party Distributors, will manage Amundi Deutschland GmbH. Steinert has management experience in the ...
Consumer Services Shoppers Are Calling from Search—Here’s What Marketers Can Do About It  Business 2 CommunityIn most major consumer services verticals, over 50% of shoppers begin their journey with an online search. This option has become more attractive because of ...
40 Job Openings In Bensalem Right Now  Bensalem, PA Patch40 Job Openings In Bensalem Right Now - Bensalem, PA - Check out the latest openings. Search hundreds of new jobs in Bensalem.
CVS shares tumble 8% as forecast takes a hit from investments in Aetna  CNBCCVS Health shares crater after the company disappointed investors with a lower-than-expected earnings forecast for the year as it integrates Aetna.
A Closer Look at eBay's Payments Opportunity  The Motley FoolThe early results are promising, but there's a lot of opportunity left.
Zed-Axis Technologies - Sales Management Software  WhaTechZed Axis is a leading Business Intelligence Software Solutions provider company in India. Contact us to know more about our Business Intelligence Software.
Cash flow evaporating at Corporate Travel Management  The Australian Financial ReviewAs we promised last month on Corporate Travel, "cash flow can't lie".
Lamar Advertising Co (LAMR) Q4 2018 Earnings Conference Call Transcript  The Motley FoolLAMR earnings call for the period ending December 31, 2018.
United Finds Way to Make Up for Weak Transatlantic Economy Sales  SkiftUnited Airlines is struggling to fill transatlantic economy class seats at reasonable fares, but is making up the difference by capitalizing on a robust United ...
Problematic employees: When to hold on and when to fire them  VentureBeatIn high-growth startups, learning to assess talent is a critical skill. A few years into the building of blinkx, a very senior person on my team burned out right before ...
Mattel forecasts a year of flat sales despite growth in Barbie and Hot Wheels  MarketWatchMattel talked up its big names during a recent analyst meeting, but is guiding for a flat year in sales.
How to Contact Us and Manage Your Subscription  Car and DriverSubscribe today! Or give Car and Driver as a gift. Contact Customer *Service*. Manage your existing subscription here. Or reach customer *service* by
On CRM: Constant Contact Adds A Surprising New Feature  ForbesEven the best technologies need a critical feature to be used effectively: people.
Why Buying Sonos After the Dip Is Not a Leap of Faith By Any Measure  Investorplace.comA small cadre of SONO stock analysts see 50% upside in the shares. Will investors see opportunity in Sonos?
Why Your Best Sales Person May Be Your Worst Sales Manager  Forbes NowI've seen this movie so many times before that I know every scene by heart. The company is badly in need of a vice-president of sales. The CEO takes notice of ...
Bedding & Mattress Sales: Retail Sales Management  Furniture World MagazineFurniture World Magazine Article: : Bedding & Mattress Sales: Retail Sales Management, Selling is everything in retail. That's why the sales manager's job is so ...
Assessing the Intelligence of AI Marketing Tech  Business 2 CommunityIn 2011, IBM Watson had just beat champion Ken Jennings on Jeopardy! and Paul Roetzer decided to apply that same technology to marketing. In an episode of ...
Hunters say it's not a 'zombie disease,' but they are worried about deer illness  NBC NewsHunters say they're concerned about the spread of chronic wasting disease in the nation's deer population, but they said there is too much unknown information.
It's time for Wesfarmers to reduce its reliance on retail  The Australian Financial ReviewThere is nothing like a $1.1 billion capital return to generate some excitement around a stock that was in the doldrums for about five years. So it was on Thursday ...
No sales managers? No problem! You can still sell well – here’s how  YourStoryDevang Mehta from Anthill Ventures talks about how startups can leverage technology and innovative solutions to sell without the need for traditional sales.
Sales tax expansion leaves everyone a bit miffed  New Haven RegisterHARTFORD — Haircuts, laundry, legal services, veterinarian visits and parking are on the list. Even paying an accountant to file your taxes could now be subject ...
Sales and Sales Management Is Broken  Business 2 CommunityI have to admit being consumed with CSO Insights latest Sales Performance Report. If you haven't had the opportunity to read it, make sure you take the time to ...
10 Qualities of a Great Sales Manager  Builder MagazineToday's sales managers need a complex set of abilities to succeed and here, we list the 10 most important skills needed to turn a good sales manager into a ...
34 Job Openings In Warminster Right Now  Warminster, PA Patch34 Job Openings In Warminster Right Now - Warminster, PA - Check out the latest openings. Search hundreds of new jobs in Warminster.
4 Ways To Develop Your Sales And Marketing Skills  Youth IncorporatedSales management is not about talking all the time, it is about listening, identifying, understanding and ultimately providing a solution.
This School For Wine Adds An Online Wine Sales Management Course  ForbesThe first U.S. school of higher education to offer a wine industry MBA now offfers an online course in wine sales management.
Knoxville Biz Ticker: East Tennessee Purchasing Association to host Diversity Business Expo  Knoxville News SentinelLatest news releases on business happenings in the Knox.biz coverage area. Check back all week for updates. East Tennessee Purchasing Association to host ...
Infiniti Research's State-of-the-Art Marketing Management Strategies Enhanced Market Impact and Sales – Request a Free Proposal Now!  Business WireInfiniti Research has announced the completion of their latest article on the major benefits of a marketing management process.
Sales Manager  WJXT News4JAXWJXT is looking for an energetic, organized, and positive individual to lead WJXT's local sales effort to achieve specific revenue and share goals.
LevelEleven Scales Sales Management Platform for the Enterprise  GlobeNewswireDETROIT, Sept. 24, 2018 (GLOBE NEWSWIRE) -- Over the past year, LevelEleven has added several new Enterprise organizations to its growing customer ...
How Sales Managers Secretly Sabotage Revenue  Forbes NowIf you're like most business leaders, you invest heavily in your sales force, but there's one rule that is usually ignored- your frontline sales manager.
Why is the Role of Strategic Sales Management so Vital to Businesses?  NEC News & EventsThere are many advantages to earning a business degree with an emphasis on strategic sales management. They include the following.
Is Sales an Art or a Science? It’s Both  Business 2 CommunityWorking as a sales person or being a small business owner who sells to customers is an interesting life, because every day is different and the process of selling ...
TAPMI plans Marketing & Sales Management course  BusinessLineThe Manipal-based TA Pai Institute of Management (TAPMI) has proposed to launch a two-year full-time post-graduate diploma in management programme in ...
What elements do world-class sales managers have in common?  Training JournalSales managers have one of the most important roles in any sales organisation, because they oversee the sales team itself. As a result, they have a role to play ...
Pot shop puts recreational sales on hold after tracking data goes up in smoke  WCVB BostonState regulators have halted recreational marijuana sales at one of the closest pot shops to Boston because of what the company described as a data problem.
The alarming findings about the 'Peter Principle' and sales managers  SmartCompany.com.auHave you ever worked with someone who was really effective in one role but then promoted to other roles, usually in management, and ended having no idea ...
Five Topics To Cover For Effective Sales Leadership Training  ForbesNo matter how large your business or your sales team, effective sales leadership training can be the difference between leading or lagging in your marketplace, ...
4 Key Principles of Negotiation in Sales  Business 2 CommunityNegotiation in Sales is About Perspective. Negotiating in sales is one of the most fundamental aspects of selling. Every sales professional will spend the majority ...
What Should You Know About Marketing Management?  London School of Business and FinanceIf you are creative and have a knack for business, you should think about taking up a career in marketing management. It is an exciting and dynamic career ...
Earnings Roundup: Genuine Parts Company, Gardner Denver, SPX Corp, and MRC Global  Industrial DistributionIndustrial Distribution provides a summary of some of the key earnings tallies in the marketplace.
Veteran TV Sales, Management Executive Bob Klingle Dies  Broadcasting & CableBob Klingle, 62, veteran TV sales and management executive, died of prostate cancer Jan. 14 in Scotttsdale, Ariz., according to WHAS-TV Louisville, Ky., where ...

Raise Concern About Sales Competition, Not About Yourself

As you are reading this sales article, read very carefully.... Read More

The Effective Executive

What does it mean to be an "effective executive"? Well... Read More

Project/Program Management Best Practices for Success in ANY Industry!

Where is our success? Although there have been improvements, over... Read More

Set Yourself up for Trade Show Success

Of the many mistakes small business owners make, a big... Read More

The Hidden Competition: Avoiding the 2 Most Common Competitors

There are really only two types of competitor:1. Obvious2. HiddenThe... Read More

Rotten to the Core: The Story of How the Best and Brightest can be Ruined

The objective of an incentive is to incite action within... Read More

Commodity Sales Prospecting - How to Stand Out From Your Competitors

I have received a number of requests for advice from... Read More

Energize Your Organization

No matter what you do, it seems, your employees do... Read More

The Four ?D?s of Sales Management

Recently I stumbled across some notes that I had kept... Read More

Make Time, Not Excuses

There are four primary activities that successful salespeople engage in... Read More

Accepting Responsibility for Your Sales Success

That we live in a time of relentless and pervasive... Read More

Management From Within

Inspiration and Management from Within ? Part 2.The more you... Read More

Moving a Business Relationship from Free to Fee: Turning Strangers to Friends with Power of Freebies

In the last issue I shared with you a technique... Read More

Are Your Business Proposals Losing You Sales? 10 Steps to Get the ?Yes? You Deserve

Your ability to write an effective and persuasive business proposal... Read More

Raise Your Fees Overnight!

Do you want to make more money?Yes, I guess that... Read More

Determining Sales Fit; the Key Growth Process for Your Business

Help your organization grow by assessing the right indicators in... Read More

Sales & Marketing Plan Strategies

Design and Implementation of a new Sales & Marketing campaign... Read More

Snowflakes Improve Holiday Sales

Snowflakes are beautiful!For the Winter Holiday sales season handcrafted snowflakes... Read More

The Top 5 Issues Facing VPs of Sales

A recent study of 2,663 sales organizations by Think Training,... Read More

Sacking Clients: Brand Power Wheel

Remember in the last message we talked about your directional... Read More

Small Business Marketing: Overtaking Your Competitors

Few businesses keep tabs on competitors, yet such knowledge can... Read More

Leadership - How To Turn The Vision Into A Reality

Be clear about where you are now. Audit your strengths... Read More

How to Write a Business Plan Sales Section for a Mobile Service

We all agree one of the most important parts of... Read More

The Spirit Of Change

A Highly Conscious Approach To Business Management. For more on... Read More

The ACCOUNTABILITY Challenge for Today?s Business Management

In today's 24/7 driven business word, accountability is becoming a... Read More