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The Value of an SE

Ever wonder what you’re worth as an SE?

Here’s a quick bit of math to give you a pretty good idea.

My premise is that the revenue per unit time an SE is associated with can be computed as:

# qualified deals you’re working on x average deal size (list price) x technical win rate / average days to solution closure

To give you an example: 10 x $50k x 50% / 120 days = $2083 per day

Let’s play with some math…

Spread out over a year, that’s $520,750 per SE. For an average team of 8 SEs for 250 working days, that’s $4,166,000 per year per team.

Suppose you improved the performance of each of the 4 parameters (metrics) by 10%. This is not at all unreasonable. That’s $3081 per day per SE — a 48% increase in revenue!

If each SE improved their performance just a little bit, the incremental revenue could be dramatic. There has been precedent for much better improvements actually being realized. One of our customers saw a 425% increase in 6 months, in large part, due to our SE Skills Improvement Program www.salesengineering.com/resources/casestudies.php

The SE can be a very valuable resource to the sales organization. Believe it.

Good SElling!

Posted in From the CTO: Common SEnSE | link to this article |

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