The Hidden Cost of Sales Rep Failure: Why 60% Don't Make It Past Year One
Written by Sergio Armani, Founder of ACG-Clinical
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.
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Disclaimer
The information in this publication is for general informational purposes only and should not be construed as legal, financial, or regulatory advice. Armani Consulting Group, LLC, doing business as ACG-Clinical, disclaims any liability for errors, omissions, or actions taken in reliance on this content. Please consult qualified professionals for advice specific to your situation.