Sales capacity planning answers: how many salespeople do you need, when should you hire them, and what quota should they carry? The key variables: quota per rep, ramp time (months to full productivity), and territory coverage.
Reps Needed
Reps = Revenue Target / (Quota per Rep × Ramp Factor)
Ramp factor: 50% in first year, 80% in second, 100% from third year.
Key Takeaways
- Plan reps backwards from revenue target.
- Include ramp factor: new reps produce at 50% in year 1.
- Sales efficiency ratio > 3:1 = healthy.
- Hire ahead of revenue targets to account for ramp.