How to build a sales capacity model
A sales capacity model links headcount to revenue: it tells you how much your team can realistically produce and how many reps you must hire, and when, to hit a future target. Without it, hiring is guesswork and you discover capacity gaps a quarter too late to fix them.
Short answer
Build a sales capacity model by calculating how much revenue your current and planned reps can produce: multiply ramped rep count by average productivity per rep, adjusting for ramp time and attrition. Compare that capacity to your target to find the hiring gap, and plan hires far enough ahead to account for ramp.
Step by step
Establish per-rep productivity
Calculate the average annual revenue a fully ramped rep produces, from historical attainment and deal data.
Account for ramp and attrition
Adjust for the months new reps take to reach full productivity and for expected attrition, which both reduce effective capacity.
- Capacity = ramped-rep-equivalents x productivity per rep
- Discount ramping reps by their ramp curve
- Subtract expected attrition
Project capacity over time
Model month-by-month capacity as reps ramp and as you plan to add or lose headcount.
Compare capacity to target
Line projected capacity against the revenue target to reveal the gap you must close with hiring or productivity gains.
Plan hires ahead of the need
Because reps take months to ramp, backdate hiring so new reps are productive when the target requires them, not the moment you notice the gap.
How Ardovo helps
Ardovo derives per-rep productivity from real attainment, models ramp and attrition, and projects capacity against target so Rook can tell you exactly how many reps to hire and by when to close a future gap, accounting for ramp lag.
Frequently asked questions
Why does ramp time matter in capacity planning?
Because a rep hired today does not produce full capacity for months. If you plan hires only when you see the gap, they ramp too late to help. Capacity models backdate hiring so new reps reach productivity exactly when the target demands it.
How do I calculate per-rep productivity?
Use historical data: the average annual revenue a fully ramped rep produces, derived from attainment, deal size, and win rate. Use fully ramped reps only, then apply ramp curves separately to new hires so you do not overstate capacity.
What is the difference between a capacity model and a quota plan?
A capacity model tells you how much revenue the team can produce and how many reps you need. A quota plan distributes the target across the reps you have. Capacity planning informs hiring; quota planning informs assignment. You need both.