Author: Anonymous

In the previous question, you were given: If an Outbound Sal…

In the previous question, you were given: If an Outbound Sales Rep has a yearly quota of $400,000 in sales and an average deal size of $30,000, they are expected to sign approximately 13.33 customers per year to meet their quota.  The approximate costs for a sales rep (all-in) are $300,000, which includes compensation (fixed and variable), additional marketing, back office, and engineering costs.  If Dropbox’s Strategic Finance team spends its remaining budget on hiring Outbound Sales Reps, how many signed new customers could Dropbox expect in return for its investment? 

For Outbound sales, the expectation of seats per business ac…

For Outbound sales, the expectation of seats per business account are higher, and the contracts are only annual. Dropbox takes into account the following for an Outbound Sale:  Average (Annual) Sales Price (ASP): $150 Discounts: 20% Annual Churn Rate: 10% Average Number of Seats: 250 If an Outbound Sales Rep has a yearly quota of $400,000 in sales and an average deal size of $30,000, they are expected to sign approximately 13.33 customers per year to meet their quota.  The approximate costs for a sales rep (all-in) are $300,000, which includes compensation (fixed and variable), additional marketing, back office, and engineering costs. Given these assumptions and assuming the sales rep’s full productivity, what is the Cost of Customer Acquisition for an outbound customer?