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The Complete Idiot's Guide to MBA Basics, 3rd Edition by Tom Gorman

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Organizing a Sales Force

The two major issues in organizing a sales force are these:
• Size of the sales force
• Alignment of the sales force
Let’s look at both.

Sales Force Size: When Is Bigger Better?

Remember the law of diminishing returns? It says that more of a good thing is good, but only up to a point—the point of diminishing returns. So one way to get the right-size sales force is to add salespeople until the last one does not produce more in sales than he or she earns. In other words, add salespeople as long as they profitably add sales. This is actually one sensible method of sizing the sales force.
 
However, there’s another consideration: the proper workload. The average salesperson’s workload should also guide decisions about ...

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