Even when a new sales hire does 500K in sales the first year, the parent company may have negligible profits, or even report a loss.  When you add salaries, benefits, equipment and overhead costs, administrative personnel costs etc, the 150K gross margin may not cover expenses.  Hiring Sales people, though, is like Woody Allen’s comments […]

What is a good revenue number for a first year sales hire for a mid-level (>$25 million) or small > $5 million) LSP: $500K.  Let’s add several assumptions.  The sales person cannot bring on board recent, previous business.  The LSP does not have a huge marketing effort and there is limited ‘existing’ business that is […]