The Hidden Cost of Sales Rep Failure: Why 60% Don't Make It Past Year One

And what companies working in clinical research can do about it…..

If you're leading sales at a research site, technology company, IRB or CRO, here's a sobering reality: most of your new sales hires will fail.

Note: If you're new to selling and struggling, it's not the end of your career and dreams. Ask your organization for support, or consider hiring an external coach or mentor who can provide training and support as you build your skills.If you're a current sales rep reading this, don't panic! These statistics reflect industry-wide challenges with hiring and developing new talent. If you're already performing well, this information can help you understand your value and why your company should invest in better processes to support the entire team.

The numbers don't lie. According to recent research, 38 percent of employees leave within the first year, with 43 percent leaving within the first 90 days. When it comes to quota performance, 67% of sales reps don't expect to meet their quota this year, and 84% missed it last year according to Salesforce's 2024 State of Sales Report. In an industry like clinical research—where relationships are everything and sales cycles can span months—these failures aren't just disappointing. They're devastating.

The Real Cost of Sales Rep Turnover

When a sales rep fails, the financial impact extends far beyond their salary. Consider:

• Recruitment and hiring costs typically run 20-30% of annual salary

• Lost opportunity costs from territories going unworked during transitions

• Relationship damage with prospects who experience inconsistent contact

• Team morale impact when colleagues see repeated hiring failures

For a clinical research company paying a sales rep $120,000 annually, a single failure can cost upwards of $200,000 when all factors are considered.

Why Sales Reps Fail: The Data

First-Year Performance Crisis:

• 50-60% of new sales reps fail to meet quotas in year one

• Only 20-30% consistently hit targets long-term

Turnover Reality:

• Annual sales rep turnover averages 25-30% across industries

• High-pressure environments see turnover rates exceeding 50%

Root Causes of Failure:

• Inadequate training and onboarding (the leading cause)

• Poor cultural fit with the organization

• Unrealistic quotas or territory assignments

• Lack of ongoing coaching and support

• Wrong hiring decisions (skills/personality mismatch)

The Clinical Research Context

The clinical research industry presents unique challenges that amplify these failure rates:

Complex Sales Environment: Your reps aren't just selling widgets. They're navigating FDA regulations, understanding protocol nuances, and building trust with principal investigators who have limited time and high standards.

Long Sales Cycles: Unlike transactional sales, clinical research sales often involve 6-18 month cycles. A rep who struggles with relationship building or lacks patience for consultative selling will flame out quickly.

Relationship-Centric Business: In clinical research, burning a bridge with a key opinion leader or site coordinator can have lasting consequences that extend far beyond a single deal.

Breaking the Failure Cycle: A Strategic Approach

1. Invest in Experienced Sales Leadership First

Before you can fix rep performance, you need leadership that understands how to develop and manage sales talent. Business development reps are a unique group of professionals, and managing to the numbers is a significant challenge for most founder/CEOs who have never carried a sales bag or are too busy to invest the time needed.

The solution: Either hire an experienced sales leader or bring in a fractional sales leader who can:

• Design and implement proper onboarding processes

• Provide ongoing coaching and development

• Set realistic quotas and manage performance

• Build a sales culture that retains top talent

2. Revolutionize Your Hiring Process

Stop hiring based on generic sales experience. Clinical research sales requires specific traits:

• Basic scientific understanding and ability to learn clinical trial processes and regulatory requirements

• Consultative selling skills rather than pressure tactics

• Patience for long sales cycles

• Relationship-building abilities in professional healthcare settings

3. Invest in Comprehensive Onboarding

The 90-day onboarding period is make-or-break. Successful programs include:

• Industry education: Regulatory landscape, clinical trial phases, key stakeholders

• Product mastery: Deep understanding of your technology, services, or capabilities

• Territory planning: Strategic account identification and relationship mapping

• Shadowing experienced reps on customer calls and site visits

4. Implement Ongoing Coaching

Monthly quota reviews aren't coaching. Effective sales coaching includes:

• Weekly one-on-ones focused on skill development

• Call reviews and joint customer meetings

• Territory planning and account strategy sessions

• Continuous training on industry trends and competitive positioning

5. Set Realistic Expectations

New reps in clinical research need 6-12 months to become productive. Your quota ramp should reflect this reality:

• Months 1-3: Focus on learning and relationship building

• Months 4-6: 50-70% of full quota

• Months 7-12: Gradual increase to full quota expectations

6. Create a Culture of Support

High-performing sales teams foster collaboration, not competition:

• Formal mentoring program that pairs new reps with seasoned performers for 6-12 months

• Team selling opportunities for complex accounts

• Knowledge sharing between experienced and new reps

• Recognition programs that celebrate learning milestones, not just revenue

The ROI of Getting It Right

Companies that implement comprehensive sales enablement programs see:

• 40-60% reduction in new rep failure rates

• 25-35% faster time to productivity

• 15-25% higher overall team performance

• Significantly lower recruiting and training costs

Taking Action

If your sales team is struggling with rep retention and performance, you're not alone. The good news? These challenges are solvable with the right strategy and support.

Start by auditing your current approach:

• How long does your onboarding process last?

• What ongoing training and coaching do you provide?

• Are your quotas realistic for new reps in clinical research?

• Do you hire for industry-specific skills and traits?

The clinical research industry needs skilled sales professionals who understand both the science and the business. By investing in proper hiring, training, and coaching, you can break the cycle of sales rep failure and build a team that drives sustainable growth.

Need help developing a sales strategy that works for clinical research companies? ACG-Clinical specializes in helping research sites, technology companies, and CROs build high-performing sales teams and optimize their commercial operations.

Sales professionals: If your company doesn't provide adequate coaching or mentoring—or if you're already successful but want to take your performance to the next level—ACG-Clinical offers individual sales coaching and mentoring services tailored specifically for the clinical research industry.

💡 Ready to turn your sales team into a high-performing, revenue-driving asset? Let’s talk. Schedule a no-obligation strategy call with ACG-Clinical and get actionable insights you can implement immediately to improve hiring, onboarding, and sales performance. Contact us today — your future top performers will thank you. Contact ACG-Clinical today!

Sources

• Forrester Research (2023). "Your Company's Quota Attainment Is Probably Around 50%, And That's Not A Bad Thing"

• Harvard Business Review (2017). "How to Predict Turnover on Your Sales Team"

• Salesforce (2024). "State of Sales Report"

• SiriusDecisions via Xactly (2025). "Sales Turnover Statistics You Need to Know"

• Work Institute. Employee retention and turnover research

• Xactly (2025). "Sales Turnover Statistics You Need to Know"

Disclaimer: The information in this publication is for general informational purposes only and is not intended as legal, financial, or regulatory advice. ACG-Clinical is not responsible for any errors, omissions, or actions taken based on this content. Please consult qualified legal, financial, or regulatory professionals for guidance specific to your situation.