Telemarketing Software Featured Article

Expanding Your Sales Division? Telemarketing Software Can Help

May 21, 2013
By Jamie Epstein - Telemarketing Software Web Editor

In most scenarios, if your company is continuing to become more profitable, the size of the organization overall will likely also grow. However, simply hiring more employees to handle various sales-related responsibilities is easier said than done. With key knowledge at hand in addition to telemarketing software, adding to your sales staff can prove to be fruitful for the long term.

In a blog post featured on, Kevin Akeroyd, senior vice president of Field Operations for Badgeville, advises that small to medium-sized businesses (SMBs) in particular should be extremely careful and think out their hiring strategy before undertaking this type of project.

The informative post commented, “For example, if you’ve got nine salespeople, and you take that number up to 12, you’ve increased headcount expenses by 33 percent. If productivity doesn’t increase proportionally, if you’ve only increased your top line by, say 10 percent, all you’ve accomplished (after you finish adding in the cost of supporting the new salespeople and subtracting that from the top-line growth) is to upset the first nine guys by shrinking their sales commission by a third.”

So, while your organization is looking to dramatically enhance your bottom line, you must first ensure that you have entered into a new market or you could soon realize that you are actually hindering the successfulness of your best sellers, since they are now forced to share their target audience with new hires.

When exactly is the best time to hire more salespeople, you ask? Ask and you shall receive, as the below facts will help you determine that after looking at three vital areas:

1. Productivity: This can be accurately determined after closely analyzing how long it is taking your current sales force to meet their quotas. Akeroyd highlights this as being equal to “productivity per existing fully ramped head count. If that metric is static – meaning your salespeople are working to full capacity – that’s the only time you add sales team.”

2. Slow but steady growth rates:  For any firm looking to add to its employee base, the newly hired applicant must pull their own weight. “If I’m going from three people to four, and the first three are giving me $10,000 a month, I better see that fourth person giving me $10,000. If he does, then maybe I’ll add a fifth guy. If all five are doing $10,000, I’ll add a sixth,” he added. However, in the case that the individual isn’t measuring up to expectations, this could in turn cause a business to cut its losses in terms of ending the hiring process all together.

3. Treat the sales representative like they are a P&L statement, with the only exception being they are alive: Before hiring another employee, it is vital for CFOs to determine what types of expenses they will see associated with the new salesperson in terms of how much it will cost to train them, what the current software will amount to since it now needs to be being scaled up in the amount of users it allows for, the overall expenses pertaining to customer acquisition and the funds needed to enhance current marketing investments.

Just because you have a larger workforce in terms of number of employees doesn’t necessarily mean you’re on the road to success. Generating leads and transitioning them into closed sales via telemarketing software is what truly matters in the end as well as if the employee can excel to help your business continue to ramp up in size.

Edited by Rachel Ramsey