The Back Office Reality of Territory Splits

As a sales representative, your territory is more than just a geographical area—it’s a reflection of your hard work, relationship-building, strategic planning and execution. But as your territory grows, so does the risk of it being split.

This isn’t just about managing your workload; it’s about understanding the deeper realities of your company’s priorities, the compensation structures that influence them, and how they impact your decisions. If you would like to maintain your current territory structure, it helps to be proactive, strategic, and deeply aware of how your company views growth versus future financial risk management.?

Understand the Company’s Strategy and Priorities

The first step in maintaining your territory is understanding where your company places its priorities: is it focused on growth, or is it more concerned with preparing for the future? The answer to this question often lies in the structure of your compensation plan, which is a clear indicator of your company’s strategic direction.

• Growth-Oriented:? If your compensation plan has no top-end governor or cap, your company is likely prioritizing growth. A comp plan that pays back to dollar one on a percentage basis also signals that the company is incentivizing you to bring in as much business as possible, rewarding you directly for every dollar earned. In this environment, your territory is seen as a key driver of company expansion, and the likelihood of it being split is lower—as long as you continue to deliver strong results.
• Preparing for the Future:? On the other hand, if your compensation plan is tiered based on revenue or sets a preset amount you can receive for hitting quota, your company is likely more focused on preparing for its future. These types of plans indicate that the company is looking to stabilize growth and perhaps prepare for a more balanced distribution of resources and risk. In this scenario, your growing territory might be viewed as a resource that could be redistributed to ensure more even coverage across regions or to develop new markets.

Psychological Impact:? The structure of your compensation plan doesn’t just reflect company priorities—it can also shape your behavior. An uncapped plan motivates continuous effort, pushing you to expand your territory relentlessly. Conversely, a capped or tiered plan might inadvertently encourage complacency, leading you to coast once you hit your targets. Recognizing these psychological drivers is crucial in staying motivated to protect and grow your territory, even when your compensation structure might suggest otherwise.

Avoid the Trap of Auto-Pilot?

As your territory grows and you start hitting your targets consistently, there’s a natural tendency to become run your territory on auto-pilot. This presents competitive risks and also territory splitting risks. If you have prevented a split, but then miss your quota, this may give the impression that there is too much to handle. If they believe that they could gain more market share by bringing on another salesperson while also derisking your business, this will be something that will be strongly considered.?

Ongoing Vigilance:? Continuous innovation and vigilance are necessary to maintain control over a growing territory. This means not just hitting your targets but actively seeking out new opportunities within your territory—new markets, new customers, or new services that can be offered. By demonstrating that you’re always looking to push the boundaries of your territory, you signal to management that it’s still growing and therefore should remain under your stewardship.? Relying on growth from the same set of customers with the same products while leaving part of your territory underdeveloped will signal a need to add a salesperson to take advantage of these opportunities.

Key Performance Indicators to Focus On:? # of new accounts buying, # of new customers engaging/buying/using, # of new customers attending company sponsored training events, # of new products being sold to existing customers (cross sell/up sell), % product mix relative to overall market, % of business with each customer (spread out or relying on only a few)

Become a Valued and Trusted Partner vs a Transaction Facilitator

One of the most critical factors in protecting your territory is the value you add to the sales process. Are you seen by your customers as a strategic partner who helps them achieve their goals, or merely as someone who facilitates transactions? If the latter is true, your leverage is weak, and your territory is more vulnerable to being split due to competitive pressures or commoditization affecting your business.

Creating Value:? To fortify your position, you need to elevate your role from a transaction facilitator to a valued and trusted partner. This means understanding your customers' businesses at a deep level, anticipating their needs, and offering tailored solutions that go beyond just selling products or services. What problems are you solving?? How will the customer's life be better/easier/more productive/better outcomes as a result of working with you?? When you’re seen as integral to their success—someone who contributes strategic insights, identifies opportunities, and helps them navigate challenges—you become indispensable. This not only strengthens your relationships but also makes it clear to your company that your role in the territory is far more than just managing accounts.

Leveraging Customer Perception:? When your customers view you as a valued partner (and you are hitting quota consistently), their feedback and loyalty can serve as a powerful defense against territory splits. Regularly collect and share customer testimonials or satisfaction data with your manager. Highlight how your unique contributions are driving their success. By doing so, you make a compelling case that your role in the territory adds significant value that cannot be easily replaced.

Demonstrate Uniqueness and Value

As your territory expands, the company may start considering a split, especially if the compensation plan doesn’t offer significant rewards for managing more business—just more workload. This is where demonstrating your unique value comes into play.

You need to make it clear that your success is not merely a product of being in a fertile market, but rather a result of your distinct approach and expertise. Document your processes, methodologies, and the specific value you bring to the table. This is done during the business planning period (what are we going to do) as well as the Quarterly Business Review (how did we do relative to our stated goals).? Whether your company is focused on growth or preparing for the future, proving that your success is uniquely tied to your efforts will make splitting your territory less attractive.

Concrete Examples:? For instance, if you’ve developed a unique onboarding process for new clients that leads to higher retention rates, make sure this is well-documented and communicated to your superiors. Or if your follow-up cadence results in higher conversion rates, share this data. These specifics show that your approach is not easily replicable and that splitting the territory could harm the company’s overall success.

Propose Strategic Alternatives

When the possibility of a split looms, and the compensation structure offers no incentive for you to take on more work, don’t wait for the decision to be made for you. Instead, take the initiative and propose alternatives that benefit both you and the company.

For example, if your company is growth-oriented, suggest adding a junior sales rep to assist with the increasing workload while you maintain overall control. This way, the company gains additional capacity without disrupting your established relationships.

Keep in mind that your revenue will have to justify adding this expense.? An easy "back of the napkin" approach is to add the junior/associate rep's on-target-earnings (salary + bonus at plan) plus an additional 50%.? This should get you close to the required all-in comp plus benefits for this role.?

Could This Be A Good Thing?

If there is no financial incentive to take on the additional work of managing extra geography, it may be time to ask yourself "why do I want to hold on to this?".

A few questions you might ask yourself:

• What would have to be true for a territory split to be a positive change?
• If I had more time due to less travel and administrative work, what would I do with it?
• How much more could I grow the best part of my territory if only I had more time to focus on it?
• What risks to my business are present if I am overextended? Would this solve these risks?

Communicate Your Vision

Finally, ensure that you are proactive in communicating your vision for the territory’s future. If your compensation plan is growth-focused, outline how you plan to continue expanding the territory and maximizing its value. If the plan indicates a future preparation focus, present a strategy that emphasizes sustainable growth, customer retention, and long-term planning.

Specific Strategies:? Create a detailed territory growth projection model in your business plan to present to management. Schedule regular 1:1s with your manager to review your progress and show your results, do not assume they see them. By consistently communicating your strategy and results, you reinforce your role as the best person to manage your territory.

Conclusion

In the fast-paced world of sales, nothing remains static. Territories grow, compensation plans shift, and companies must adapt to market demands. As a sales rep, understanding whether your company is prioritizing growth or? preparing for the future is crucial to understanding how these strategies can affect your business. By aligning with company strategy, building deep relationships, demonstrating your unique value, proposing strategic alternatives, and communicating a clear vision, you can ensure your territory is in the best possible position as decisions are made.