Remove gross-margin

The Pipeline

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Churn Is A Variable of Quota You Need To Know

The Pipeline

Most go for the easy and perhaps obvious option; they gross up their quota by what they feel their average churn rate is. Actively trading out lower margin or otherwise weaker quality revenue accounts with better attributes is part of the job. We should all seek higher-margin, less resource consuming accounts that have other pluses.

Churn 310
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Sales Leaders – You Get What You Ask For – Sales eXchange 237

The Pipeline

I have fund that companies who incent their sales people based on gross profits are consistently better aligned with their reps, and achieve mutually better results. As we all know, a $500 discount on a $10,000 piece of equipment, can have little impact on what the reps gets paid, but could be a huge part of the gross or net margin.