Sales Agent Capacity and Performance: Managing Your Expectations
Sales agents cannot devote 100% of their time – or brain power – as they have several other principals, and the impact this has on performance both in terms of volume of orders, but also in terms of the level of complexity they can accommodate.
The typical sales agent may have 3 to 5 agencies.
Sales agents will therefore be part time for you (as well as all of their other principals). However this does not mean they will only achieve a fraction of the results of a full timer: self-employed commission-only sales agents can leverage their contacts and experience spectacularly.
The Sales Agent’s Portfolio
- sales agents will have a variety of scenarios in terms of the amount of time spent and money earned from their various agencies, and that often the 2 are diametrically opposed.
- sales agents may attempt to restrict earnings from an agency to keep it away from the danger zone where they are at risk of being replaced by reps.
- there may be a threshold below which a sales agency may be dropped as it represents too much time, too big a share of time available (opportunity cost), and too low earnings to justify itself (typically about £2-5k pa?)