Sales Tips From Jonathan London

An ROI on Sales Training: Make It Work

 

$75K to $1,000,000 in 1 Year – An R.O.I. on Sales Training

Just spent 45 minutes in a webinar listening to Dave Stein of ESR talking about how to, and not to implement an effective sales training program.

His basic contention is that the way most companies select training vendors doesn't work and therefore companies don’t get what they can from their investment.

This brought up the subject of R.O.I. When Dave was asked what was a good R.O.I. he felt that there were  so many variables to truly define a good one that it would be hard to answer that question without knowing what the variables were for a particular client.

I think it is much easier to do so. Here is how I help define a good R.O.I. to my clients. I am using a scenario of a company with a $40 million dollar target investing $75,000 to train their sales team.

Return on Investment with $40 million Target*

Investment*	3% Growth	5% Growth	10% Growth	20% Growth
$75K	$1,200,000	$2,000,000	$4,000,000	$8,000,000

* Year 2 would be better since the investment has already been made in year 1.


A More Detailed ROI: Avg of 1 million quota each for 40 Reps*

Reps Overachieving	5% Growth   50K	10% 100K	15% 150K	20% 200K
5 or 12.5%	$250,000	500,000	750,000	1,000,000
10 or 25%	500K	1,000,000	1,500,000	2,000,000
15 or 37.5%	750K	1,500,000	2,250,000	3,000,000
20 or 50%	1,000,000	2,000,000	3,000,000	4,000,000

* Year 2 would be better since the investment has already been made in year 1.


Why wouldn’t somebody spend $75K to achieve a minimum of 250K or up to $8,000,000. Is there another investment that has such a high ROI!