High sales numbers don't always mean high profit. Who is truly more valuable to the company?
Total Sales: $250,000
Net Profit: $23,500 ✅
Total Sales: $300,000
Net Profit: $1,000 ⚠️
A fair, transparent, and powerful system that measures what truly matters: profitability.
First, we understand the true cost of a salesperson and what they need to sell just to cover their own costs.
(Salary + Expenses) / Profit Margin = Break-Even Sales
Let me do some math magic... 🪄
A healthy target is a multiple of the break-even point, ensuring high profitability is the goal.
Break-Even Sales * Target Multiplier = Monthly Target
...and voilà! I'll handle the heavy calculations, you get to use the final product like a charm.
A simple score that instantly shows profitability. 0 is neutral, positive is profit, negative is loss.
Score = ( (Profit / Cost) - 1 ) * 100
Targets are based on individual costs, creating a level playing field for everyone.
Focuses the team on high-margin deals, not just high-volume ones.
Provides clear, objective data to identify top performers and those needing support.
By adopting this system, we equip our sales team with clear goals, reward true performance, and drive the entire company towards greater profitability.