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Average Revenue Per Sales Rep

Lower is better

Sales

How is Average Revenue Per Sales Rep calculated?

Average Revenue Per Sales Rep formula

To calculate the average revenue per sales rep, you'll want to take all the revenue within a given time period and divide that by the number of sales reps within your organization. You'll want to omit any revenue generated through any self-service channels or any other channel where a sales rep was not involved in the sale.

What is Average Revenue Per Sales Rep?

This KPI helps organizations determine the efficiency of their sales teams. Since this metric only includes revenue generated by sales where a member of your team was involved, you'll be able to easily see how much your sales team affects your bottom line. Ideally, the average revenue per sales rep should exceed the amount that each sales rep is compensated. If it's not, you'll want to immediately revisit either your compensation strategy or the health of your current sales pipeline. It's important to note that the compensation of your reps should scale equal to the revenue that they bring in.

For more detailed metrics on each of your individual sales reps, you'll want to use software like HubSpot, Salesforce, or Gong to coach and grow your team.

Why is Average Revenue Per Sales Rep important?

This metric helps you understand the impact of your sales teams on your bottom line and monitor the efficiency of your sales pipeline.

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