A new model for measuring salesperson lifetime value

Pablo Farias, Eduardo Torres, Roberto Mora Cortez

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose: The purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the sales force equity. Design/methodology/approach: This is a conceptual paper supported by a case study. Findings: The authors contribute to the literature by operationalizing the salesperson lifetime value concept and introducing new important aspects in comparison with previous discussions, including peer effect, recruitment/hiring cost and termination costs. Originality/value: This manuscript theoretically and practically contributes to personnel value management in the organization and sales force financial control. The authors introduce peer effects, hiring/recruitment costs and termination costs, which are missing as a set in previous research. In addition, this paper offers a simple but robust model to practitioners’ use.

Original languageEnglish
JournalJournal of Business and Industrial Marketing
Volume32
Issue number2
Pages (from-to)274-281
ISSN0885-8624
DOIs
Publication statusPublished - 6. Mar 2017
Externally publishedYes

Keywords

  • Financial reporting
  • Intangible assets
  • Salesforce equity
  • Salesperson lifetime value
  • Salesperson valuation
  • Valuation approaches

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