Regional sales manager plans can be an effective tool for maximizing sales volume. The plans are suited for sales territories of any size, ranging from local to international. An important key is properly dividing the territory into regions and providing the proper marketing and support for each area. The overall sales plan suffers if one region is supported less than the others while held to the same standards for sales calls, converting calls into sales, customer retention and more.
Choose the number of regional sales managers needed based on the size of the overall territory. At least two are needed to justify a regional plan. A company selling products or services to customers in all 50 states may have dozens of regional managers, while a smaller company may need just four regional sales managers with sales territories evenly divided. Review your competitors' regional sales manager setups for examples.
Divide the sales territory after deciding on the number of regional sales managers. For example, a statewide regional sales manager plan could split the state into four regions -- north, south, east and west. A two-person regional sales plan may divide a smaller area into north and south regions. A four-person regional sales team may be divided by account size: large, medium, small and new accounts.
Choose a compensation plan for the regional sales managers. Plans vary widely, ranging from salary and commission based on industry standards, to commission-only plans. Other compensation plans feature a monthly retainer fee plus commission. Network with similar companies to find the going rate for regional sales managers.
Hire the regional sales managers while assigning them their territories and quotas. Authorize the regional sales managers to hire salespeople as needed depending on sales volume.
Monitor weekly and monthly reports from the regional sales managers as you compare their production against forecasts.
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