Home > Stocks > Average Revenue per Sales Rep Investment Analysis – Facebook Example [VIDEO]

Average Revenue per Sales Rep Investment Analysis – Facebook Example [VIDEO]

By Kevin Ballard


Updated on

Average Revenue per Sales Rep Video Summary

This analysis is just for perspective. It rounds out the rest of the “Effectiveness of the sales organization” posts.

This is not an exact analysis. Merely a way to compare stocks.

Other factors might contribute to high or low Sales per Rep numbers. User experience or the company’s business model, for example.


The numerator.

Start with Trailing Twelve Months (TTM) of revenue. This might be more up-to-date than revenue for the previous fiscal year. This information can be found on finance websites or in SEC filings.

I prefer the actual revenue amount rather than abbreviated (in millions). For example $66,529,000,000 vs $66,529 (millions). The full revenue amount will give you an actual sales per rep figure. It’s merely a matter of preference, however.

Marketing & sales employees

The denominator.

Marketing and sales employees are the “reps.” Marketing employees could be considered indirect sales reps. Sales employees could be considered direct sales reps.

The only way I know of to approximate the number of employees is via LinkedIn. It’s certainly not exact, but the best information available.

Sales per Rep

TTM revenue ÷ Marketing & Sales employees

Performing this simple calculation for a stock and its competitors facilitates comparison. Whose sales organization appears to be the most effective?

Again, other factors beyond the ability of the marketing and sales employees could account for differences in Sales per Rep amounts between competitors.

About Kevin Ballard

I’ve worked in corporate finance for almost fifteen years. I have a bachelor’s in Finance and an MBA. I am also a Certified Management Accountant. At one time I had my securities license (Series 7) and Health and Life insurance licenses. What’s more important is that I like to learn and always seek to truly understand the subject I am studying. Learn more about Invest Some Money's Editorial Process.

Leave a Comment