JONATHAN HOBDAYSALES LEADERSHIP
Performance

Stop measuring new sellers on revenue

Revenue in a new seller's first months says more about the territory than the seller. Leading indicators tell you sooner who will be good.

Measuring new sellers on revenue in months one to six is a management failure, not a performance failure. Revenue in month two tells you about the territory they inherited, the deals someone else started and luck. It tells you almost nothing about whether they will be any good.

What the data showed

In a recent interim role, I set leading indicators for new joiners after their bootcamp instead of early revenue targets. The new business sellers who qualified hardest closed their first deals at nearly twice the average selling price.

That changed how the region measured people. New business sellers and expansion sellers now have different leading indicators, because they do different jobs.

What to measure instead

Keep the goals simple enough to walk with

If a new seller has to look up their goals, there are too many of them. The best targets for a new joiner can be recited walking down a corridor.

Questions sales leaders ask about ramp

When should revenue targets start?

Once the seller has had time to build their own pipeline, not before. Until then, measure the behaviours that create a pipeline worth having.

Should new business and expansion sellers have the same indicators?

No. They do different jobs. New business sellers are judged on access to economic buyers and the quality of first deals; expansion sellers on account coverage and the health of the customer base.

How do we make this stick?

Keep the indicators few, review them weekly and coach separately from the deal review. A sounding board for the sales leader helps when the board is asking for revenue before the indicators have had time to work.

Is this on your board's agenda?

Thirty minutes, in confidence, on what you are seeing and what I would look at first.