READ THE FULL POST AT http://fourquadrant.com/go-to-market-strategy-the-cost-of-b2b-direct-selling/ The effectiveness of a companies go to market strategy will be directly correlated to a company's success. Although the sales function is a critical component of the go to market strategy and the lifeblood of any business, most direct sales people spend precious little time actually selling, even though the annual cost of a direct sales representative is very high. Incremental changes in the amount of time a direct sales rep spends on core selling activities will have a positive impact on the business. One way to increase the direct selling time for sales reps is to first understand the problem and then craft a solution. Download go to market planning templates at http://www.fourquadrant.com/products/

1. Go to Market Strategy – The Cost of
B2B Direct Selling
View the full post at:
Go to Market Strategy – The Cost of B2B
Direct Selling

2. QUESTION:
Cost Assumptions:
 Base is assumed to be $125K –
$150K annually
 Variable compensation at quota
is approximately $150K annually
 Overhead (benefits, office, taxes,
phone, etc.) is estimated at 20%
of total on target earnings
 Travel and entertainment is
estimated at $50K annually

3. Model Assumptions:
 In the model to the right, the
average sales cycle is
assumed to be eight months.
 The average sales price is
assumed to be $250K and
only the direct sales rep costs
are included.

4. Where Does a B2B Direct
Rep Spends Their Time?
According to many studies, sales
reps only spend 20% – 40% of their
time selling, and that includes
supporting existing customers. So
the question is, where does a sales
rep spend their time?

5. How to Increase the
Amount of B2B Direct
Selling Time
 Increase core selling activities
 Decrease non-core selling
activities

6. Go to Market Strategy – The Cost of
B2B Direct Selling
View the full post at:
Go to Market Strategy – The Cost of B2B
Direct Selling