Sales territories are a way to define which prospects or leads are handled by specific sales reps. Territories can be a tricky issue with fast growing companies as there are morale issues with constantly changing how leads are assigned to reps, as human nature is to fear change and expect the worst.
Here are some common ways to divide leads:
- Geographical territories (e.g. by state, city, zip code, etc)
- Round robin so that each lead that comes in (or list that is generated) is handed to the next rep in sequential order
- Verticals or company type such that certain industries (e.g. energy or technology) are owned by specific reps
- Company size based on employees or revenues
Developing sales territories along with lead distribution strategies is critical for fast growing companies and should not be taken lightly.
David Cummings on Startups 
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