You are a thirdyear salesperson for the acer Computer Compan

You are a third-year salesperson for the acer Computer Company. This year you need to make or break the $100,000 commission mark to remain among the top 20% of producers (and to pay for that new car you just bought your spouse). Here are the key numbers: Commission rate = 10% of sales. On average, you usually sell $2500 worth of product to each customer. Out of the qualified leads you are supplied or obtain from your network, you normally are successful in making an appointment with 30%. In the Discovery process you are very skilled and 75% will want your help and schedule a second appointment. Finally, your closing rate in second appointments is also high at 75%. Given that you will take two weeks vacation (the cabin is already rented) on average, how many qualified leads do you need per week to make your goal:

a. 74

b. 62

c. 47

d. 39

e. None of the above

Solution

To make a commission of $100,000,

Sales required = 100,000 / 0.10 = $ 1,000,000

Let the number of qualified leads = N

We have (52-2) weeks.

Sales made in 50 weeks = 0.3*0.75*0.75*N*2500

(The factor of 0.3*0.75*0.75 depicts the 30% screening rate for first appointment, 75% for second and 75% for final closing)

0.3*0.75*0.75*N*2500 = 1,000,000

N required for 50 weeks = 2370.37

N required per week = 2370.37/50 = 47