[HMM90]

I'm starting an internet business that will involve sales to local merchants by an outside sales rep. We'll be selling yellow page-style advertisements and gift vouchers (like Groupon).

I'm estimating a typical sales rep will work 14 hours per week and will personally visit 3-4 merchants per hour (mostly cold call visits, with no prior introduction). I'm also estimating they'll close on 20% of the visits.

Do these assumptions sound reasonable?

The ads will cost the merchant $15 to $60/month. Each of the gift vouchers will cost the merchant less but presumably they will buy more.

Thanks.

[Fr_Chuck]

Are the outside sales reps going to be given any specific training to close sales, or to get past the person at the front desk.

It is going to be so "if" really great closers may get your 20 percent, but on advertising sales, I personally doubt you will be even hitting 10 percent. For just average sales people.

Next your assumption on 4 per hour is assuming I guess that you will get into a sales presentation at each stop. I would doubt you get to even do a presentation at 1 in 4 that you go into.

[HMM90]

This is great information. Thanks.

The outside sales staff will receive 2 to 3 days 1:1 training at the outset then some follow up depending on need and availability of trainers.

Previously my formula was 14hrs/week * 4 businesses per hour * 20% = 11.2 closes.

Should I adjust to 14hrs/week * 8 businesses per hour * 10% = 11.2? I know the number of businesses per hour would be dependent on the location/proximity of the businesses. Would 6 per hour be safer on average?

Thanks again.