How to Balance Sales Territories

The Territory Balancing Problem

Most sales teams have unbalanced territories. One rep has 100 small accounts. Another has 50 large accounts. One rep covers a high-growth market. Another covers a stagnant market. One rep has manageable workload. Another is overwhelmed.

Unbalanced territories create problems. They create unfairness. They demotivate reps. They hurt performance. They lead to turnover.

Here's how to balance sales territories — how to equalize potential, workload, and opportunity for fairness and performance.

Why Territory Balancing Matters

Territory balancing matters because it affects fairness, performance, and satisfaction.

Fairness: Balanced territories ensure equal opportunity. Reps have similar potential, similar workloads, similar chances to succeed.

Performance: Balanced territories optimize performance. Reps can effectively manage their territories. They're not overwhelmed or underutilized.

Satisfaction: Balanced territories improve satisfaction. Reps feel treated fairly. They're motivated to perform.

Why it matters: Unbalanced territories create problems. Balanced territories enable performance.

What to Balance

When balancing territories, balance for:

Account Potential

What it is: Total revenue opportunity in each territory.

Why it matters: Equal potential ensures equal opportunity. Reps have similar chances to succeed.

How to balance: Calculate total potential (revenue opportunity) for each territory. Ensure territories have similar potential.

Example: Territory A has $2M potential. Territory B has $2M potential. They're balanced for potential.

Account Count

What it is: Number of accounts in each territory.

Why it matters: Similar account counts help balance workload. Reps have similar numbers of accounts to manage.

How to balance: Count accounts in each territory. Ensure territories have similar counts (when potential is similar).

Example: Territory A has 50 accounts. Territory B has 50 accounts. They're balanced for count.

Workload

What it is: Amount of work required to manage each territory.

Why it matters: Balanced workloads prevent burnout. Reps can effectively manage their territories.

How to balance: Estimate workload — calls, meetings, travel, admin. Ensure territories have similar workloads.

Example: Territory A requires 20 hours/week. Territory B requires 20 hours/week. They're balanced for workload.

Rep Capacity

What it is: How much work each rep can handle.

Why it matters: Territories that match rep capacity optimize performance. Reps can effectively manage their territories.

How to balance: Assess rep capacity. Match territories to rep capacity.

Example: Junior rep manages 50 accounts. Senior rep manages 100 accounts. Territories match capacity.

How to Balance Territories

Here's how to balance territories:

Step 1: Calculate Territory Potential

What to do:

• Calculate total potential (revenue opportunity) for each territory
• Sum account potential within each territory
• Compare potential across territories

Why it matters: You can't balance what you don't measure. Calculate potential first.

Example: Territory A: $2M potential. Territory B: $1.5M potential. Territory C: $2.5M potential. They're unbalanced.

Step 2: Count Accounts

What to do:

• Count accounts in each territory
• Compare account counts across territories
• Consider account size and complexity

Why it matters: Account count affects workload. Balance counts when potential is similar.

Example: Territory A: 50 accounts. Territory B: 75 accounts. Territory C: 40 accounts. They're unbalanced.

Step 3: Estimate Workload

What to do:

• Estimate workload for each territory — calls, meetings, travel, admin
• Consider account complexity and requirements
• Compare workload across territories

Why it matters: Workload affects rep capacity. Balance workloads to prevent burnout.

Example: Territory A: 20 hours/week. Territory B: 30 hours/week. Territory C: 15 hours/week. They're unbalanced.

Step 4: Assess Rep Capacity

What to do:

• Assess each rep's capacity — experience, skills, workload
• Consider rep preferences and strengths
• Match territories to rep capacity

Why it matters: Territories that match capacity optimize performance.

Example: Rep A can manage 50 accounts. Rep B can manage 100 accounts. Match territories accordingly.

Step 5: Adjust Territories

What to do:

• Adjust territories to balance potential, count, and workload
• Move accounts between territories as needed
• Ensure territories match rep capacity

Why it matters: Adjustments create balance. Don't be afraid to make changes.

Example: Move accounts from Territory B to Territory A to balance potential and count.

Step 6: Verify Balance

What to do:

• Verify territories are balanced for potential, count, and workload
• Ensure territories match rep capacity
• Check for any remaining imbalances

Why it matters: Verification ensures balance. Don't skip this step.

Example: Verify all territories have similar potential, count, and workload. Verify they match rep capacity.

Balancing Strategies

Here are strategies for balancing territories:

Balance by Potential First

Strategy: Balance territories by potential first, then adjust for count and workload.

When to use: When account potential varies significantly.

How to do it: Calculate potential. Balance potential. Then adjust for count and workload.

Why it works: Potential determines opportunity. Balance potential first to ensure fairness.

Balance by Count When Potential Is Similar

Strategy: Balance territories by count when potential is similar.

When to use: When account potential is similar across territories.

How to do it: Ensure similar potential. Then balance by count.

Why it works: When potential is similar, count affects workload. Balance count to balance workload.

Balance by Workload

Strategy: Balance territories by workload, considering account complexity.

When to use: When account complexity varies significantly.

How to do it: Estimate workload. Balance workload. Adjust for complexity.

Why it works: Workload affects rep capacity. Balance workload to prevent burnout.

Match Territories to Rep Capacity

Strategy: Match territories to rep capacity, not just balance territories.

When to use: When rep capacity varies significantly.

How to do it: Assess rep capacity. Match territories to capacity.

Why it works: Territories that match capacity optimize performance.

Common Balancing Mistakes

Here are common mistakes to avoid:

Balancing by Count Alone

The mistake: Balancing territories by account count without considering potential.

Why it's wrong: Creates imbalances — reps with many small accounts vs reps with few large accounts.

The fix: Balance by potential first, then adjust for count.

Ignoring Workload

The mistake: Balancing territories without considering workload.

Why it's wrong: Creates imbalances — some reps overwhelmed, others underutilized.

The fix: Estimate workload and balance accordingly.

Not Considering Rep Capacity

The mistake: Balancing territories without considering rep capacity.

Why it's wrong: Territories that exceed capacity lead to burnout and poor performance.

The fix: Assess rep capacity and match territories accordingly.

Not Reviewing Balance

The mistake: Balancing territories once and never reviewing.

Why it's wrong: Territories become unbalanced as markets change.

The fix: Review balance regularly and adjust as needed.

The Bottom Line

Balancing sales territories requires:

• Calculate potential — Total revenue opportunity in each territory
• Count accounts — Number of accounts in each territory
• Estimate workload — Amount of work required for each territory
• Assess rep capacity — How much work each rep can handle
• Adjust territories — Move accounts to balance potential, count, and workload
• Verify balance — Ensure territories are balanced and match capacity

Balancing strategies: Balance by potential first, balance by count when potential is similar, balance by workload, match territories to rep capacity.

Common mistakes: Balancing by count alone, ignoring workload, not considering capacity, not reviewing balance.

The sales teams that succeed aren't the ones with perfectly balanced territories from day one. They're the ones that balance territories thoughtfully, review regularly, and adjust continuously.

That's how you balance territories for fairness and performance — by calculating potential, estimating workload, assessing capacity, and adjusting continuously.