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Technology Stocks : Firstwave Technologies, Inc. (FSTW)
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To: Shege Dambanza who wrote (131)12/8/1997 9:30:00 PM
From: Roger A. Babb   of 1205
 
Shege, my sales force would agree with you that I miss the point of how to measure productivity. Hours worked, hours logged in, miles traveled, phone calls made, memos written all have little meaning to me. I am interested in purchase orders per sales person, revenue per sales person, revenue per purchase order, revenue per sales dollar, new customer attempts per sales person, new customer success ratio, and other items most sales persons would rather the CEO didn't notice.

But I have found that a rough correlation can be made for sale person productivity by comparing database hits per sales person. A hit being any type of entry or query. Almost always the sales person with the most hits will produce the most revenue per sales dollar. Thus I would want my license fee to be based on server activity, not hours logged in. Since my profits and revenues are proportional to the hits on my sales database, I am happy to have my license fee also based on hits.
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