“Territories are not fair.””My accounts are bad.”
”This team has a better shot to achieve quota than us.”
“My quota makes no sense.”
“I don’t have any accounts in industry X, which is easier to sell into.”
“My accounts are the wrong size.”
If you’re in RevOps, your suggestion box has likely been filled with the above comments about 'bad' territories (or Target Account Lists or Books of Business). Territory equity is a hot-button issue in all sales orgs. Second only to unfair quotas, Sellers and Sales Leaders will voice their concerns if they believe their territory lacks opportunity. But RevOps needs to allocate accounts in a way that maximizes the company's chances of hitting its numbers and promotes future growth. Even though hurt feelings are unfortunate, should territory equity be a priority? This guide illustrates the impact of territory equity in promoting growth and how to design equitable territories.
Sales Reps and Sales Leaders are right to advocate for the best possible territory. More than other employees, sales is paid in a variable system. The more deals they close, the more income they make. The harder the quota, the harder it is to earn money. Therefore the quality of territory directly affects the life of a salesperson. If you are assigned to the Nike account and Nike is not a good fit for your product, you should complain! You should say, ‘Please don’t make me sell to Nike! They’re not going to buy it!’
And it’s not just about money. If reps don’t close deals, they don’t get promoted. Internal recognition for sellers is not achievable if they don’t close deals..
And it’s not just about the recognition. There is a human element…asking a seller to sell into a bad territory is like telling someone to shove a round peg through a square hole. It is unpleasant to call people that are not interested in buying what you’re selling.
Territory equity directly impacts retention; if a rep is assigned a bad territory, they are within their rights to seek opportunities elsewhere. And losing reps not only leads to missed targets but also crushes company culture.
Our friends at Repvue have studied rep retention and found that:
Territory equity isn’t just about pleasing reps. It has downstream implications. How do we set quotas for reps if territories aren’t equitable? The answer: variably. We have to say that X Territory is Y% healthier than Z territory…therefore the Quota should be Y% higher for Territory X. This math considers many variables and takes time to implement at scale. When sellers talk about quotas (which they will), this math will quickly go into a microscope.