Sales Territory Plan: A step-by-step guide with the F.R.E.E. approach

Let's start by clarifying that there is no general formula or universal strategy plan that can be implemented to every company, segment, or territory.

When putting together a Sales Territory Plan, we can draw inspiration from classics such as "The Prince" by Machiavelli or "The Art of War" by Sun Tzu.

However, when it comes to the actual plan, we should consider the current market situation of the company.

A territory entry strategy should not have the same priority as a scaling strategy.

To develop a strategy tailored to the company's current situation, we like to use the F.R.E.E. framework. Let's explore what it is and how it works.

The F.R.E.E framework

The use of the word "FREE" is intentional, signifying freedom from pre-made formulas.

This might appear as a simple concept, but in an era where many propose universal mass solutions (from AI to courses and workshops), it is crucial to distance ourselves from these approaches and focus on the specific moment of the company.

Moreover, F.R.E.E. is an acronym, with each letter identifying a different phase of the company in the market.

F = First

Identifying a company that aims to make its first sale in a new market.

It's important to note that even if a company has made sales in other markets, the first sale in a new market is significant.

This initial sale might be to someone familiar with and trusting of us.

However, this sale won't guarantee future sales or predictability.

R = Replicate

Identifying a company that has achieved its first sale(s) in the market and is now aiming for predictable replicability.

The goal is to ensure that the initial sale was not an isolated event.

At this point, a group of trustworthy customers has been identified.

Here, we're testing whether our service/product is accepted by the market and has the potential to grow.

E = Escalate?

Once sales are predictably replicable, we can consider escalation.

A key distinction from the previous step is that, while the earlier phase focused on understanding potential in the market, here we're actively pursuing it.

An appropriate strategy could involve a blitzscaling approach, entailing heavy investments even with low or negative margins.

The goal is to aggressively dominate the market, potentially by significantly reducing our service/product price compared to the market.

This may render competitors unable to compete, leading to a temporary negative margin but eventual dominance.

E = Elaborate?

Achieving an escalation curve signifies a level of market maturity.

At this stage, we need to develop a plan to maintain the current situation and potentially grow further (we already have the strategy from the previous phase).

The key difference is that at this point, the market plan is based on actual market feedback rather than just a PowerPoint presentation.

This refined process can be applied to other products/services in the same market or adapted to other market characteristics.

Have you encountered this approach before??

Where does your company stand within the FREE framework?

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