Modern Revenue at 2025 Value Creation Summit

Accounting for AE ramp & turnover in sales capacity planning

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A commonly overlooked cause of missing sales targets : Failing to account for AE ramp and turnover in sales capacity planning. I see this happen at companies at every stage of growth—from Series A to Enterprise . To illustrate how AE ramp and turnover impact sales capacity, let's look at this math example based on an Enterprise sales team of 10 AEs . To keep it simple, we're only looking at AE sales capacity here; we're ignoring quota capacity and sales productivity for now. Assumptions ● 8 existing AE roles; 2 newly created AE roles

● 2 months AE recruiting/hiring timeframe ● 6 months AE ramp to 100% capacity ● 25% AE turnover during the year Individual AE roles ● AE1 : Tenured reps at 100% capacity ● AE2 : Leaves in April; backfill joins in July ● AE3: Tenured reps at 100% capacity ● AE4 : Leaves in January; backfill joins in April ● AE5: Tenured reps at 100% capacity ● AE6 : Left in the prior year; backfill joins in February ● AE7 : Leaves in June; backfill joins in September ● AE8: Tenured reps at 100% capacity ● AE9 : Newly created position, joins in March ● AE10 : Newly created position, delayed start in July Takeaways

● The total AE team is at 70% average sales capacity for the year (bottom right corner) ● An AE departure cuts the role's annual sales capacity nearly in half (from 100% to 54%) ● This AE team is under 100% capacity during every month of the year (bottom row)