Territory management is one of the most critical yet overlooked aspects of sales success. Many salespeople experience a familiar pattern: they start strong, open new accounts, build momentum, and then suddenly hit a plateau. This wall isn’t just frustrating—it’s a natural part of the growth cycle that requires strategic intervention to overcome.

Growth never follows a straight line. Instead, it resembles a staircase with periods of intense effort followed by noticeable leaps in performance. The same principle applies to territory management. To reach the next level, you must create space—just as you cannot add water to a full glass without first emptying some out. This means making difficult decisions about which customers deserve your limited time and resources.

The foundation of effective territory management is customer ranking. I recommend evaluating customers using four essential criteria: volume, margin, payment habits, and what I call the “PITA factor” (Pain in the you-know-what). Volume and margin are straightforward business considerations, but the other two factors often determine whether a customer relationship is truly profitable or merely draining your energy and resources.

Payment habits deserve special attention, especially for new salespeople eager to grow their book of business. Remember this truth: until a customer pays their invoice, you don’t have a sale—you have an expensive loan. Even worse, the customer has both your product and your money! Never compromise on payment terms, no matter how tempting the volume might be. The credit department isn’t your adversary; they’re protecting your company’s interests with insights you might not have from a pure sales perspective.

The PITA factor represents customers who constantly demand attention, repeatedly haggle over price, and always seem to have problems requiring your immediate intervention. These customers might generate decent volume, but they consume disproportionate amounts of your time and mental energy. Using our four-point ranking system, customers earn points for meeting your criteria in each category (with payment counting double). This creates a clear classification: A-customers (4 points), B-customers (3 points), C-customers (2 points), D-customers (1 point), and zero customers (0 points).

Your A and B customers should receive most of your attention—they’re the foundation of sustainable growth. C customers either need development to become B customers or should be gradually phased out. D and zero customers should be handed off to competitors or junior team members. This may seem harsh, but the math is undeniable: the same sales call can yield a $1,000 order from a difficult customer or a $100,000 program from an ideal client.

Identifying your perfect customer profile is a powerful exercise that activates your reticular activating system—the mental filter that helps you notice opportunities matching your criteria. Just as buying a blue Honda Accord suddenly makes you notice all the blue Honda Accords on the road, defining your ideal customer helps you instantly recognize promising prospects (and problematic ones) when you encounter them.

Managing your physical territory requires equal strategy. Divide your region into quadrants and work systematically through each area, focusing on high-value customers first. This prevents the inefficient “shotgunning” approach where salespeople zigzag across their territory, wasting valuable time in transit instead of in front of customers.

The difference between average and exceptional salespeople often comes down to mindset—scarcity versus abundance. Those with a scarcity mentality cling to every account regardless of profitability. Those with an abundance mentality understand that letting go of poor-fit customers creates space for ideal clients who deliver exponential results. As my father-in-law wisely said: “Bend over backwards for your customers, never bow down.” You’re not subservient to your customers, nor are you superior—you’re partners in mutual success.

Link to Episode 16: https://www.buzzsprout.com/2255768/episodes/17767830-territory-mastery.mp3?download=true