Client acquisition is vital to the success of any business. A strong client acquisition strategy consists of attracting and nurturing prospects, converting them into paying clients, and retaining their business. To accomplish all of this and succeed, you need a skilled and dependable sales team.
Sales is a complex function, and we do recommend you break down the roles to maximise efficiency and ROI. In this post, we are talking about the frontline sales people - “inside sales reps”, “sales development representatives/SDRs”, "account executives/AEs", and other sales ninjas and warriors directly accountable for connecting with prospective clients and selling whatever you bring to the market. Let’s break down what it takes and how much it really costs to have a sales rep, and why it might be worth it for your business.
What Does a Sales Representative Do?
A sales representative is your agency's superhero, responsible for connecting with potential new clients and generating a steady stream of RFPs and pitches. Their primary mission? Selling your products and services!
The Salary: A Major Piece of the Puzzle
The most apparent cost is your rep's salary. On average, in London, you can expect to pay around £35,000 per year, which compares favourably with the US, where the average salary is about $58,000 (£46,700).
Recruitment, Training, and Onboarding
When you hire a sales rep, you'll need to invest in their training and onboarding. According to Glassdoor, the average company in the UK spends about £3,000 and up to 27 days to hire a new employee, and it takes an average of 3 months for the successful applicant to become fully operational. According to HubSpot, the average sales rep tenure is 18 months.
Tools and Resources
Your sales team needs tools and resources to perform their job effectively. According to InsideSales.com, small companies spend roughly £3,700 per rep per year on their sales tech stack.
Commissions and Bonuses
The goal is to recruit a team full of intrinsically motivated self-starters, but the reality is that very few people will be as committed and hardworking as owners and founders. This is why commissions and bonuses based on performance can act as a great incentive to bring in more clients and revenue for your agency. Providing stock options can also have a similar effect.
Time and Energy
Managing a sales rep also takes time and energy. You'll need to support them, provide feedback, and ensure they have great training and coaching plans. If you're considering hiring a sales manager in the UK, they command around £50,000 per year.
The Benefits of Having a Sales Representative
Now, let's take a closer look at the benefits:
- Increased Revenue: A skilled sales representative can bring in more clients and significantly boost your agency's revenue.
- Client Relationships: They can build strong relationships with clients, leading to repeat business and referrals.
- Expertise: Sales reps are experts in selling, allowing you to focus on other aspects of your agency.
- Scalability: With a sales team, your agency can grow faster and reach new heights.
You’ll need a manager and 5-6 reps to achieve economies of scale - we advise strongly against hiring just 1 or 2 reps and not setting them up for success. Considering attrition, training, and appropriate tech stack, the cost of maintaining this team will be upwards of £35,000 per month. It’s a significant expense, but the benefits of having a great sales team can make it worth the investment.
With time, patience and sufficient in-house resources you can absolutely manage this yourself. Alternatively, if you don’t have the time or tools to undertake this challenge, outsourcing this function may be your best bet; send us a message and let’s have a chat!
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