You do realize that most salespeople who do half-million-dollar deals get the vast majority of their compensation from commissions, and would be fired outright if they ever got to the point of only drawing their salaries, right?
So, if there are zero per-individual fixed costs from hiring, then it doesn’t matter how many sales any salesperson makes. It seems reasonable to assume that fixed costs are non-zero, so that there is a breakeven below which hiring someone wouldn’t be worthwhile. Here’s some evidence on that which suggests that indeed fixed costs are large.
You do realize that most salespeople who do half-million-dollar deals get the vast majority of their compensation from commissions, and would be fired outright if they ever got to the point of only drawing their salaries, right?
So, if there are zero per-individual fixed costs from hiring, then it doesn’t matter how many sales any salesperson makes. It seems reasonable to assume that fixed costs are non-zero, so that there is a breakeven below which hiring someone wouldn’t be worthwhile. Here’s some evidence on that which suggests that indeed fixed costs are large.