Leads are doled out by territory or round robin. 41% of companies under $50mm in revenue segment AE’s by territory while 48% simply round robin their leads. 76% of companies over $50mm in revenue segment by territory while only 22% round robin their leads. While round robin works for smaller companies, as revenue grows, unfortunately complexity increases meaning AE’s will have to be segmented by some criteria (territories, by vertical, named accounts, etc).
On average, 81% of AE’s are supported by an SDR team. “We observed little variation by company revenues — companies at $25M ARR are as likely to use the SDR role as those at $250M. The inflection point for SDR support is driven by ACV. Somewhere between $515K ACV companies move from we can’t afford SDRs to we can’t afford not to have them.” Additionally, “For high-growth companies that number increases to 87%.”
At hire, the average AE has 2.7 years of experience and needs 5.3 months to ramp. Only 22% of companies require that an AE have more than 5 years experience before hire. “Notably, fewer companies require 3+ years’ experience — down from 42% in 2020 to 32% in 2022. We note that high-growth companies require 15% less experience, on average, than laggards. Average experience prior to hire.” Also “Respondents with ACVs over $100K require nearly 1.7X more experience than those with ACVs below $25K.”
Attrition. “Median annual turnover sits at 32% split between 12% involuntary turnover (attrition resulting from termination) and 20% voluntary turnover (attrition initiated by the rep — e.g., The Great Resignation).”
Quota achievement is 66%. “On average, 66% of reps in a given group achieve quota. There has been remarkable consistency around this metric over the years. Two-thirds of reps achieving quota seems to be the natural equilibrium.”
7 reps per sales leader. “The median number of AEs reporting to a single first-line leader is 7. This is consistent with our findings since 2015. As revenues increase, leaders support more AEs.” Manager comp is $173k on median. VP comp is $296k.
The report is full of a lot more data and insights than presented in this blog. Their website is email@example.com://blossomstreetventures.com/metrics/