Revenue per Rep
TL;DR
Revenue per Rep measures the average revenue generated by each sales rep in a given time period. It’s a simple yet powerful way to evaluate sales performance, identify high- and low-performing reps, and understand the ROI of your sales headcount. In SaaS, this metric is essential for scaling efficiently, aligning compensation, and setting realistic revenue goals.
What is Revenue per Rep?
This metric tracks how much revenue each sales rep is directly responsible for generating, usually measured monthly, quarterly, or annually.
Formula:
Revenue per Rep = Total Revenue ÷ Number of Reps
Example: If a team of 6 reps brings in $900K in new ARR this quarter, Revenue per Rep is $150K.
You can also calculate this:
- By segment (SMB, mid-market, enterprise)
- By tenure (new vs. ramped reps)
- By product or territory
Why It Matters in B2B SaaS
- It reveals individual and team productivity. Averages help benchmark baseline output
- It supports headcount and hiring plans. You’ll know how many reps are needed to hit future revenue targets
- It informs compensation strategy. High revenue per rep may justify accelerators or SPIFs
- It benchmarks rep efficiency. Especially helpful when compared against quotas and activity metrics
- It reflects scalability. Revenue per rep should grow or stabilize—not drop—as you add headcount
How to Measure Revenue per Rep
Step 1: Define the time period (e.g., last quarter)
Step 2: Pull actual revenue generated by the team (typically new ARR or bookings)
Step 3: Divide by the number of active, ramped reps during that period
Step 4: Segment by:
- Role (AE, AM, SDR)
- Tenure or ramp status
- Sales region or territory
- Inbound vs. outbound
Best Practices
- Exclude non-ramped reps. They’ll pull down the average unfairly
- Benchmark by segment. Enterprise reps will naturally produce more than SMB reps, given deal sizes
- Combine with quota data. Use to see if rep performance is meeting expectations
- Track over time. A declining trend may indicate market shifts, enablement issues, or quota misalignment
- Use as a hiring signal. If revenue per rep is rising and quotas are being hit, you may be ready to scale
Final Thought
Revenue per Rep is one of the most useful efficiency metrics in SaaS. It cuts through the noise and tells you how much value your sales team is generating—rep by rep. When monitored consistently, it becomes a strategic lever for GTM planning, forecasting, and team growth.
FAQs
How does Revenue per Rep differ from Quota Attainment?
Quota Attainment measures performance against target, while Revenue per Rep is an absolute output metric. Both are important.
What’s a good benchmark for this metric?
Depends on your segment and deal size. For mid-market SaaS, $400K–$600K in new ARR per AE per year is a solid range. Enterprise reps often exceed $1M.
Should I include churned or inactive reps?
No. Only include active, fully ramped reps for the cleanest signal.
Can SDRs be measured with this metric?
Not directly. SDRs don’t typically close revenue, so use metrics like meetings booked or pipeline generated instead.
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