In a recent post, I introduced on a common scenario that sales leaders encounter whereby the CEO asks the chief sales officer to substantially add salespeople to the sales force to grow the bottom line. We see this strategy repeated over and over again and, unfortunately, it very frequently leads to deeply disappointing results for the CEO, investors, the board of directors, and the sales leader. Growing the sales force to grow the bottom line seems to make common sense, right? Well not exactly. Here’s why.
What is the desired impact of adding salespeople?
First, let’s look at what impact the stakeholders envision with the “add salespeople” strategy. Driving increased revenue and bottom line growth is anticipated from more salespeople acquiring more new customers. These representatives may be deployed in new geography to broaden the company’s footprint, or they may be added within the existing footprint where, with more salespeople, the company can reduce the number of accounts per salesperson with the expectation that those reps will invest more time with each buying customer to sell more offerings (cross-selling) per company.
Why doesn't adding salespeople produce increased revenue and bottom line growth?
There are really three factors for why significantly increasing the number of salespeople often doesn't result in expected financial growth. These are:
Unrealistic timelines associated with the expected results
Unanticipated expenses with adding and supporting salespeople