Table of contents
Revenue by Territory
TL;DR
Revenue by Territory tracks how much revenue is generated within each defined geographic, vertical, or account-based sales territory. This metric helps SaaS organizations assess territory performance, allocate resources strategically, and refine territory planning. It’s essential for identifying growth pockets, resolving coverage gaps, and enabling equitable rep distribution.
What is Revenue by Territory?
This metric measures total revenue (usually ARR or bookings) attributed to specific sales territories over a given period.
Territories can be defined by:
- Geography: e.g., North America, EMEA, APAC
- Account segments: e.g., enterprise, mid-market, SMB
- Industry verticals: e.g., fintech, healthcare, SaaS
- Named accounts: key accounts assigned to specific reps
Formula:
Revenue by Territory = Total Revenue from Deals Closed in the Territory
Example: If the West Coast territory closed $1.5M in ARR this quarter, that’s its revenue contribution.
Why It Matters in B2B SaaS
- It enables smart resourcing. Allocate reps, SDRs, and marketing spend where revenue potential is highest
- It helps assess territory balance. Uneven revenue distribution can point to coverage or ICP alignment issues
- It supports quota setting. Territories with historical high revenue often warrant higher quotas
- It informs GTM expansion. Identify which regions or industries are under-penetrated or overserved
- It improves forecasting granularity. Territory-level trends offer early signals for pipeline risk or upside
How to Measure Revenue by Territory
Step 1: Define your territory boundaries (geo, segment, vertical)
Step 2: Attribute closed-won deals to the correct territory (often via account assignment in your CRM)
Step 3: Sum the total revenue for each territory in the selected time window
Step 4: Segment further by:
- Product line or SKU
- Rep performance within territory
- New vs. expansion revenue
- Sales stage trends
Best Practices
- Use consistent territory mapping. Avoid rep overlap or ambiguity in account ownership
- Incorporate expansion and upsell data. Especially for AM- or CSM-owned territories
- Combine with pipeline and forecast data. Revenue alone isn’t enough—look at future potential too
- Normalize for rep count. A high-revenue territory with 5 reps vs. one with 2 may skew comparisons
- Review quarterly. Territories can become unbalanced as markets evolve or accounts mature
Final Thought
Revenue by Territory is more than just a performance report—it’s a lens into how your GTM strategy plays out on the ground. Whether you're planning rep coverage or launching into new verticals, this metric ensures your sales org is chasing opportunity where it truly exists.
FAQs
Should I include only new business or also expansions and renewals?
Depends on your sales motion. For full commercial teams, include all revenue. For new business teams, limit to new logo ARR.
What if multiple reps or functions touch a deal?
Attribute revenue based on territory assignment or create split credit rules in your CRM.
Can this be used for comp benchmarking?
Yes. High-potential territories often justify higher quotas and may impact OTEs.
How does this inform marketing?
It helps align demand generation and event spend with high-performing or underperforming regions.
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Get fast, accurate intelligence across sales, marketing, and CX, without scaling headcount.