Determining the budget line item for a sales initiative can be difficult until you start talking to vendors. There are a multitude of sales consultants out there with prices that vary just as much. Once you determine the key knowledge gaps you're trying to fill in your organization or the challenges you're trying to overcome, then it's time to connect with the right solution for your budget and pain points.
It's difficult to write a blog and identify exactly how much a sales initiative will cost for your organization because there are a number of factors that impact your line items. Remember, as with anything, a sales initiative is an investment that's based on needs.
If the business implications of your current challenges are worth a top-dollar investment, it behooves you as an organization to write the check. If they're worth more of a skills training or lower cost investment, then you need to allocate funds where it makes sense. The last thing you want to do is to spend money where you won't see results.
So, when sales leaders ask us, "how much should a sales initiative cost?". We often walk them through a quick assessment that gives them a ballpark number for their organization. We've outlined some of the components in this blog to get you thinking about your own organization and the type of initiative you're looking to launch. Using these inputs will help you find the right partner to execute your plan.
First, determine the type of initiative you need.
Is this a rep level training?
Will it include manager training?
Are you training them on a new product?
Are you restructuring your sales process?
How much alignment with other functions in your organization is required?
What are the most metrics that will indicate success?
Average Deal Size
Annual Contract Value
Seller Ramp-Up Time
Increase in Pipeline
Average sales cycle
Revenue forecasting accuracy
Time to productivity
Revenue per sales rep
Cost of sales
As you assess your challenges and the metrics you want to impact, what do you think would be the best solution to the problem?
Asales fundamentalstraining for new reps
A training customized to your company and buyers
Complete overhaul of sales organization
“Draft-in” initiative that aligns with other organizational priorities
A true consulting engagement that plans for adoption and reinforcement for both the short and long-term
The cost of a sales consulting initiative can be wide-ranging. Depending on your company size and the problems you're solving, it can range from $50K all the way to $2M+. The key to nailing down the cost is to determine the inputs to the initiative. There are several components that influence the cost both up and down, including:
Types of Sales Reps (Enterprise, Inside, ADR, etc…)
Geographies for Roll-out (EMEA, APAC, etc..)
Use these inputs as a way to define the scope for your initiative to increase sales productivity. Thinking through these items in advance will help make your consulting company search easier because you'll be able to better match them with yourdefined your requirements for success.