video training

The Simple Economics of Online Sales Training (Download ROI Calculator)

3 min read João Ferro Rodrigues, Founder & CEO at bugle

There is no doubt that selling is a vital part of any organisation: sales bring in revenue and revenue covers expenses, ensures returns on investments and gives businesses the opportunity to grow. Selling is like bridging a gap that exists between what your customers need and the product or service that fulfills that need. Do you think you are doing everything you can to effectively bridge that gap?

There are multiple challenges in sales. Productive, timely and consistent communication is sometimes impossible to maintain: sales reps have a high turnover, teams are geographically dispersed, and the product lifecycle is sometimes too fast to keep everyone on the same page. These are three impediments that can’t be fixed by traditional training methods — it is a matter of acting quicker and thinking smarter. Online sales training is not only an option, it is the best option for sales teams who can’t afford to waste time nor money.

In this article, you will learn how to calculate the return on investment of using video training to improve your sales results by taking a simple and gradual approach to the economics behind it. This will help you build a solid argument that justifies the investment in this field.

The main KPI we will use to measure our success is revenue. Additionally, we will take into consideration the standard annual cost of an offline sales training for our simple estimate.


There are five sequential steps a sales manager can follow to calculate the ROI of an online sales training approach targeted at improving sales teams results:

Step 1) Gather current information about your sales team performance

Step 2) Estimate your sales performance improvement with online sales training

Step 3) Determine savings in offline sales training solutions

Step 4) Quantify online sales training investment

Step 5) Calculate your online sales training ROI


You can follow the different steps in this article using your own numbers to get to a tailored conclusion. Click here to download our Sales Training Academy ROI calculator.


Step 1) Gather annual revenue data and the average annual sales performance per sales rep. Let’s look at an example:

Company B has forty people working in sales. Each of them closes, on average, forty deals per year with an average sales ticket of 3 thousand euros and an average commission of 25%. We know that each sales rep brings an average 90 thousand euros per year in net revenues (40*€3k*0.75), and that, overall, the sales team is responsible for 3.6 million euros in net revenues.


Step 2) Estimate your sales performance improvement per sales rep due to online sales training

If Company B implements an online video training solution, each sales rep will make, on average, four more sales per year and will increase their average sale ticket to €3.6k. Assuming the commission stays the same (25%), then each sales rep will be bringing an extra €28.8k per year:

(44*€3.6k*0.75) - (40*€3k*0.75) = 28 800

This means that, overall, the 40 people sales team will accrue an additional 1.152 million euros per year.


Step 3) Determine your savings in offline sales training

By implementing an online sales training program, Company B will significantly reduce their training costs. No travel expenses, trainer man-hours and actual training sessions time will result in extra €50k savings annually.


Step 4) Quantify online sales training annual investment (technology, manager and content)

Company B’s overall annual spend in online sales training is €90k. This includes a platform subscription, a full-time team member to manage it and €25k per year in training content production.

If you want an exact quote from bugle, contact us!


Step 5) Calculate your online sales training ROI. It is now time we tied this altogether. We take the increased revenue brought about by our additional sales, add the saving in offline training, deduct the annual investment in online sales training and divide the result by the annual investment in online training. The formula looks like this: ((increased revenue due to annual change in average sales performance per sales rep) + (reduced costs in offline training) - (online video training investment per year)) / (online video training investment per year)

For Company B, their ROI is (€1.152M+€50k-€90k)/(€90k) = 12.36X investment.

Not too bad a multiple, right?


This example uses an annual timeframe to keep the economics simple. If we assume that one sale is not a single event, and that it can also be responsible for additional revenues in the following years (secondary products or features; a multi-year subscription), and that some of the initial costs of content production will be reduced overtime (maintenance is cheaper than creation), then the truth is that the true ROI is much higher.


Is this clear enough? We invite you to follow this method to assess if sales training through online video is something you should be investing in, and what ROI you can expect to achieve — download the Online Sales Training Academy ROI Calculator here.

Remember the bugle team is always available to support your decision-making and offer tailored solutions. Reach out and let us know what you’re thinking!

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Tags: video training, sales training, sales performance, resources, sales, ROI calculator


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