Home Care Sales and Marketing Tip: What Is Your "Maximum Selling Potential"?

February 21, 2014


Go with me on a little journey to answer one of the most frequently asked questions we get. "How many clients/admissions/referrals should my rep be getting"?


As much as this question is asked within the industry, there is no standard answer. Many people throw around numbers they've heard at a conference or from an industry expert...but there is no science behind those numbers. In reality, there are 2 answers to this question.


Answer #1 - Your rep should get enough clients/admissions/referrals to generate revenue and profitability that pays for themselves and generates a net profit on top of that for the agency. This is simple...and a calculation we build into every compensation plan and/or discussion we have about this matter with agency owners, CFOs, and hiring managers. It's powerful because it answers the question of "How much do I need from the rep to make money", yet doesn't answer "How much can they actually get". For that, we'll need to move on to Maximum Selling Potential. 


Answer #2 - Calculate your reps Maximum Selling Potential. The MSP (no, not Minneapolis/St. Paul) is the number of available referrals for your agency based upon several factors. Here is how you calculate it.


1. Pick the regularly referring facilities in the rep's territory (whether they refer to you or not). Create a list of at least 10 but no more than 25 of these facilities.


2. Count up the number of total average monthly referrals these facilities make. (What? You don't know that number? Do not pass GO, do not collect $200, Go back to square one and requalify every account on the list. This is vital, first step information you should have on every account in your territory)


3. Count the number of "true" competitors you have in your space. A true competitor is one who has an active sales force calling on the same accounts you are. Disregard agencies with no direct sales/marketing effort.


4. Add up the total available referrals and divide by the number of agencies. Now you have your starting point for calculating MSP. Simple...right?


We expect that there is roughly 20% "leakage" in these referral sources where referrals that should go to you or your true competitors leak out to other agencies. That's normal due to patient choice, referral source apathy, or a variety of other reasons. We won't subtract these 20% of referrals from the totals however, as your rep is going to make those up from accounts that exist outside of this target list.


Now that you've developed your baseline, here is how to fine tune the number.


Add 10% (for each measure) to your number if:

-   You have a formal sales training program

-   You have an experienced sales manager

-   You have specialty care programs that are unique

-   You serve an underserved area

-   You have hired your team based on ability, and not likability

-   You have accurate and efficient systems for tracking and using data that reps collect in the field.




Subtract 10% from your number if:

- You are missing any of the above measures (subtract 10% for EACH measure you are missing)


When you're done, you have a very good guideline of what the potential is for your sales representative in their current territory. That's right...you can (and should) be able to leverage at least a 60% upside in business over and above your "share" by making your sales force more professional and making your agency's offering more competitive. That calculation is a double edged sword, because yes, you can lose up to 60% of "your" business to another agency by not paying attention to these critical details.


Home care is not getting any less competitive. Agencies are working hard this very moment on strategies to increase market share across the country. Those that plan and execute well will thrive, and those that don't will struggle. Be in the former group....plan, execute, succeed.


If you are missing some of these key sales development measures, check out our Sales Coaching COMPLETE & SUPPORT programs. We have drastically simplified and improved our sales coaching/managing/support programs. We now have a simple, monthly program that is tailored to your needs for as long as you and your sales team need it. We begin with a thorough assessment of your rep(s) to determine what development they need and how long it will take to achieve their goals. Then we get right to work on helping them do just that. These programs are totally appropriate for new reps, reps that need support and development, as well as seasoned reps. More details are here http://homecaresales.com/coaching.html



Good selling!


Michael Giudicissi


Home Care Sales by Power Shot Training, Inc.


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Melanie Stover, OT, MBA, MS/ISM

Executive Director 

Home Care Sales & Marketing Society 

Telephone: 901-335-2374

Email: Melanie@HCSociety.com

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