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Sales Rep Cold Calling Calculator


Instructions:

    1. Input the cost components associated with allocating a portion of your sales rep's annual time to cold calling.
    2. Input the number of leads and prospects that your advertising campaign yields.
    3. Click the Calculate button.


Cost Components

Sales Rep Salary:     Divide the total annual compensation of your sales rep (include any anticipated commissions and bonuses) by the amount of time they spend cold calling.  We assume our rep's annual income is $70K and he spends 1 day per week prospecting.
Expenses:   Include list cost, telephone, letters, gasoline, and other travel and entertainment expenses associated with prospecting.
Management:     Include the cost of time spent supporting the rep in the field and following up on their call activities.

Opportunity Cost
(A function of actual costs)

Opportunity Cost Multiplier:     The opportunity cost of a sales rep spending time prospecting rather than actively selling.  A factor of 1.00 indicates that the marginal cost of adding a sales rep is equal to the marginal profit the rep generates.  In other words, the additional sales  your rep would generate in the time he is currently prospecting would be worth at least the amount of money you're paying him.  In practice, this factor will be greater than 1.00.

Campaign Yield

Prospects:     Businesses classified as eligible buyers who have a use for your products and services.