When calculating sales capacity, if a new sales rep is still growing and is only expected to deliver 50% of quota, they can count as half of a productive sales rep. This is often referred to as a full-time equivalent or FTE for short.
Another important metric to understand is the number of leads required to service a sales rep. If you are adding sales reps, make sure you also have a clear plan for how you will drive the additional leads needed.
There’s a lot more to say on this topic, but since it’s very similar cameroon mobile database to managing a sales force at a traditional software company, we’ll save it for another blog post.
Our experience with SaaS startups shows that they typically start with several lead generation programs, such as pay-per-click Google AdWords, radio ads, etc. We find that each of these lead sources becomes saturated over time and produces fewer leads for a greater dollar investment. Therefore, SaaS companies will need to continually evaluate new lead generation sources that they can layer on top of older sources to maintain growth.