Territory Logic

Geographic Assignment Rules

Each Participant shall be assigned a defined Geographic Territory consisting of one or more metropolitan statistical areas (MSAs), states, or countries as specified in their individual Plan Document. The Participant is eligible to receive Sales Credit only for Qualified Transactions where the Billing Address of the customer falls within their assigned Geographic Territory as of the Transaction Close Date. In cases where a customer maintains multiple billing locations across two or more assigned territories, Sales Operations shall designate the Primary Billing Location within fifteen (15) business days of first invoice issuance. Geographic Territory assignments may be modified by Sales Operations with a minimum of thirty (30) days' written notice, except in the case of organizational restructuring, in which case assignments take effect at the beginning of the following fiscal quarter.

Named Account Assignment

Certain accounts designated as Named Accounts shall be assigned directly to a Participant irrespective of the Participant's Geographic Territory. Named Account assignments are maintained in the Master Account Registry and take precedence over Geographic Territory rules for purposes of Sales Credit eligibility. A Participant assigned a Named Account shall receive exclusive Sales Credit for all Qualified Transactions with that account regardless of the billing location or the geographic territory in which the transaction is booked. Named Account lists are reviewed semi-annually by Sales Operations. Accounts may be added, removed, or reassigned during the annual planning cycle. Mid-year changes require written approval from the Head of Sales Operations and the relevant Regional Vice President, with effective date no earlier than the first day of the following fiscal month.

Hybrid Territory Model

Participants assigned to a Hybrid Territory shall be eligible to receive Sales Credit based on a combination of Geographic Assignment and Industry Vertical coverage as defined in their Plan Document. Hybrid assignments grant the Participant rights to all accounts within their Geographic Territory that also fall within their assigned Industry Vertical, as classified in the Corporate Account Taxonomy. Where an account qualifies under both a Geographic and a Named Account assignment, the Named Account rule controls. Where an account falls within a Participant's geographic boundary but outside their assigned Industry Vertical, that account is classified as an Open Territory account and may be pursued by any Participant with Geographic or Vertical eligibility, with Sales Credit determined by the first closed transaction within a rolling twelve-month period.

Coverage Score

// Coverage Score measures the proportion of addressable accounts actively covered
COVERAGE_SCORE = (ACCOUNTS_COVERED / TOTAL_ADDRESSABLE_ACCOUNTS) * 100

// Example: Rep covers 47 of 54 addressable accounts
// COVERAGE_SCORE = (47 / 54) * 100 = 87.0%

// Thresholds:
// >= 90% : Strong coverage — territory is well-worked
// 70–89% : Watch zone — some accounts at risk
// < 70%  : At risk — remediation or redistribution required

Workload Balance Index

// Workload Balance Index identifies over- or under-loaded territories
// Values above 1.0 indicate overload; below 1.0 indicate capacity to absorb more
WORKLOAD_BALANCE_INDEX = REP_CAPACITY / TERRITORY_DEMAND

// REP_CAPACITY = accounts a rep can manage well (typically 40–80 for enterprise)
// TERRITORY_DEMAND = weighted sum of accounts by complexity tier
//   TERRITORY_DEMAND = (ENT_ACCOUNTS * 3) + (MM_ACCOUNTS * 1.5) + (SMB_ACCOUNTS * 0.5)

// Example:
// Capacity = 60, Demand = 72  =>  WBI = 60 / 72 = 0.83  (overloaded)
// Capacity = 60, Demand = 45  =>  WBI = 60 / 45 = 1.33  (underloaded)

Copy & paste into your AI assistant

You are a sales operations analyst specializing in territory design. I need to analyze the balance and coverage health of our current territory structure. Our situation: - [NUMBER] territories assigned to [NUMBER] reps - Territory model: [Geographic / Named Account / Hybrid] - Average accounts per rep: [NUMBER] - Current coverage score range: [MIN%] to [MAX%] Please: 1. Identify which territories appear overloaded or underloaded based on the data 2. Calculate a Workload Balance Index for each territory 3. Recommend specific account transfers or territory adjustments to rebalance 4. Estimate the impact on quota attainment equity if adjustments are implemented 5. Draft the territory rule language for our plan document covering assignment priority and dispute resolution

Mid-Market SaaS — Territory Rebalance Drives Attainment Equity

A 180-rep SaaS company with five years of organic growth had never formally redesigned its territories. Geographic patches reflected headcount decisions made year by year, with legacy reps inheriting the densest metropolitan accounts while newer hires were assigned suburban and rural expansions with far smaller revenue potential. Sales Operations ran a coverage and workload analysis and found the top quartile of territories by revenue potential contained 58% of all Fortune 1000 accounts. Reps in those territories were hitting 127% of quota on average; reps in the bottom quartile averaged 61%. The redesign took 11 weeks and involved reassigning 2,200 accounts across 180 reps, rebalancing named-account lists, and implementing a formal coverage score review in the quarterly business review cadence.

In the fiscal year following the redesign, attainment distribution narrowed significantly. Bottom-quartile territory attainment rose from 61% to 89% average. Top-quartile attainment adjusted from 127% to 108%. Most critically, overall attainment equity — measured as the ratio of top-to-bottom quartile attainment — improved by 34%, and voluntary attrition among reps with less than two years of tenure dropped by 41%.