Territories are usually drawn on a map and quotas set on last year's numbers. Both are proxies for the thing that matters: how many ICP-fit companies actually exist in each area.
Count before you carve
Run your ICP filter per region and count. In most markets the distribution is brutally uneven — a handful of metropolitan areas hold the majority of qualifying companies, while large geographic territories contain very little addressable business.
Equal-area territories therefore produce unequal opportunity, which shows up later as reps who miss quota through geography rather than skill.
Balance on accounts, not on kilometres
Build territories so each contains a similar count of tier-one and tier-two accounts, adjusted for expected win rate and travel cost. Use place-level data rather than national averages; density varies enormously between neighbouring towns.
Where field visits matter, factor in physical premises and property data — a company with three sites is a different opportunity from one registered at an accountant's address.
Re-plan on a schedule
New incorporations and dissolutions reshape density every quarter. Review territory counts twice a year, and always before setting the next quota cycle.
Publish the counts internally. Reps accept a hard quota far more readily when they can see the account math behind it.
Frequently asked questions
What data do I need for territory planning?
Company records with a reliable address, sector code, size band and status — ideally down to town or postcode level so you can measure real density.
How often should territories change?
Recount every quarter, redraw at most annually. Frequent redraws destroy relationship continuity and cost more than the imbalance they fix.
