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.

Why It Happens

Most rep failures aren’t about talent — they’re about systems.
Here’s where companies typically go wrong:

  1. No defined Ideal Customer Profile (ICP) — reps waste time chasing the wrong prospects.

  2. Weak onboarding — new hires are told what to sell but not how to sell it in your market.

  3. Lack of coaching and feedback — managers focus on metrics, not skill development.

  4. Poor alignment with delivery teams — promises made in sales can’t be delivered operationally.

The result? Good people burn out in bad systems.

The Leadership Blind Spot

Leaders often misdiagnose sales failure as a hiring problem, not a structural one.
But when multiple reps fail under the same conditions, it’s not coincidence — it’s culture.

Clinical research is complex. Selling in this space requires understanding regulations, study timelines, PI relationships, and sponsor expectations.
You can’t shortcut that learning curve.

Without structure, mentorship, and feedback loops, even the most experienced hire will eventually stall.

What High-Performing Companies Do Differently

The best-run sales organizations in clinical research operate more like clinical operations teams: structured, measured, and iterative.

They:

  • Define clear ICP and messaging frameworks

  • Build repeatable sales playbooks that guide outreach, discovery, and follow-up

  • Create feedback systems between BD and operations

  • Invest in ongoing coaching, not just onboarding

  • Set realistic ramp expectations with milestone-based accountability

They don’t just hire sales reps — they build systems that produce performance.

The Fix: A Leadership Responsibility

If you’re a leader, ask yourself:

  • Do we have a documented sales process that new hires can follow?

  • Does every rep know how to position our value to different buyer types?

  • Are we coaching behaviors, or just reporting numbers?

  • Is feedback flowing both ways between BD and delivery?

If you answered “no” to any of those, the solution isn’t another hire — it’s a redesign of how your team operates.

For Sales Reps: It’s Not You, It’s the System

If you’re struggling, you’re not alone.
You may not be underperforming — you might be undirected.

Find mentors. Study what top performers do differently. Ask your manager for role-specific feedback.
And if you can’t find that internally, seek external coaching to accelerate your development.

The best reps don’t wait to be trained — they take ownership of their growth.

Final Thought

In clinical research, great salespeople aren’t born — they’re developed.
If the industry wants to change the 60% failure rate, it’s time to start treating sales like the science it truly is: built on process, feedback, and leadership.

Your next hire’s success isn’t luck.
It’s leadership.

Call to Action

If you’re ready to stop the revolving door of sales turnover and start building a team that consistently delivers, let’s talk.

At ACG-Clinical, we help clinical research organizations design sales systems that actually work — from playbooks and onboarding to coaching and leadership alignment.

📩 Connect with me at sergio@acg-clinical.com or visit www.acg-clinical.com to schedule a consultation.

Don’t keep losing good people to bad systems.
Build the kind of sales culture that keeps them — and wins more studies.

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.

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