America’s 500 Largest Sales Forces (2005)

Every year, Selling Power magazine’s corporate research team ranks companies according to the number of salespeople they employ. Selling Power’s 2005 listing shows that the top 500 companies in the United States depend on 17.5 million salespeople to achieve their revenue goals. Our research shows that, without question, the US sales force is responsible for this country’s economic recovery and growth.

The Selling Power 500 includes the top 200 manufacturing companies, the top 200 service companies, the top 50 insurance companies, the 30 largest direct-selling companies and the top 20 automotive-dealer organizations (megadealers). Every year, new companies make the list, while others drop off. The total number of salespeople employed by all 500 companies increased by 1,867,465 compared with last year.

This year’s increase reverses last year’s drop in the number of salespeople, which was the first decline since 2001. This seemingly large increase, however, was mainly a function of the direct-selling category in which some of the larger companies revised their home-sales-force estimates upward over the past year. The number of salespeople declined in the service industry for the second straight year, remained about the same in manufacturing, declined in the insurance industry and showed a slight increase in the automotive industry. Overall, without the direct-selling numbers, the number of salespeople actually decreased for the second straight year by approximately 8 percent.

The states with the largest numbers of SP 500 companies are California (58), New York (53) and Illinois (34). The states in which the SP 500 companies employ the largest number of salespeople are New York (5,275,341), Michigan (3,033,015) and California (2,837,903). These states account for approximately 29 percent of the total companies and a whopping 64 percent of the total salespeople, respectively.

Productivity on the Rise

Our research team continued to find that salespeople employed by manufacturing firms contribute a far higher amount of sales revenue compared with other industry segments. The top 200 manufacturing firms employ 498,904 salespeople and produce more than $3.1 trillion in sales. That’s an average of $6.2 million in sales per salesperson. This represents a substantial (12 percent) increase in productivity compared with last year and represents two straight years with double-digit increases in productivity. It is interesting to note that while manufacturing companies lost 6,357 salespeople over last year, they gained 166,789 total employees, which is the second straight year that manufacturing has lost a small number of salespeople and gained in the number of total employees.

The top 200 companies in the service sector reported a decrease of 81,702 salespeople, for a total of 632,043 salespeople. While the number of salespeople decreased by a significant 11 percent, total revenues were more than $1.8 trillion, for a substantial 15 percent increase. This represents more than $2.9 million in sales per salesperson and a healthy 30 percent increase in productivity – the second straight year with double-digit productivity increases. The total number of service-sector employees increased by a substantial 984,035.

The top 20 automotive megadealers reported increases, as well, including an increase in the individual salesperson productivity measure. The top 20 firms own 1,318 dealerships (up by 4 percent), employ 19,770 salespeople (an increase of 4 percent) and produce more than $72 billion in sales (up by more than 7 percent). This brings the average annual sales per salesperson to $3.6 million (up by more than 3 percent).

The top 50 insurance companies show a total sales force of 693,001, with an average sales volume per salesperson of $861,061, which represents a substantial 18 percent increase in productivity over last year. The number of salespeople has decreased by 9 percent.

The top 30 direct-selling companies reported 15.6 million salespeople, continuing a trend of increases in the number of salespeople over the last four years. The year 2005 reveals an enormous increase of 2,025,777 salespeople, half of whom come from an upward gain in the reported sales force for Avon of 1,000,000.

Selling Power 500 Salespeople Drive the Economy

It is important to note that each salesperson in the service or manufacturing industry supports, on average, 12.2 other jobs within the company in 2005. That figure is almost 18 percent higher than last year. Service and manufacturing companies employ a total sales force of 1.1 million salespeople who produce almost $5 trillion in sales and ensure the employment of more than 15 million people. This once again highlights the fact that America’s sales professionals are responsible for helping with the current economic recovery and the future growth of the economy.

Higher Sales – Sales Forces Decline in Numbers

This year, only 14 percent of the companies listed reported an increase in the size of their sales force; 68 percent remained unchanged; and 18 percent experienced a cutback. As mentioned before, the number of nondirect-selling sales jobs within the SP 500 decreased by 8 percent, and the sales volume increased overall in all industries by 12 percent over last year.

This year’s listing includes the top 10 companies in six key industries. Insurance companies are listed as a separate category. A detailed map shows state-by-state comparisons. The corporate directory also includes Websites and the companies’ addresses and phone numbers.

Get the Most out of the SP 500

Top Executives – Use the SP 500 to benchmark your company’s productivity per salesperson. Find out how you measure up to your competition and the average in your industry. Check what companies have decreased their sales force and what companies are gearing up for expansion.

– Use the SP 500 to benchmark your company’s productivity per salesperson. Find out how you measure up to your competition and the average in your industry. Check what companies have decreased their sales force and what companies are gearing up for expansion.

Salespeople – Use the SP 500 as your best-prospect list. There is no other source that gives you access to companies that purchase products for a large number of salespeople. This is your ideal list if you sell sales training, sales-incentive services, CRM solutions, automotive fleets, sales meetings or trade-show services. Begin your account planning by researching company Websites.

– Use the SP 500 as your best-prospect list. There is no other source that gives you access to companies that purchase products for a large number of salespeople. This is your ideal list if you sell sales training, sales-incentive services, CRM solutions, automotive fleets, sales meetings or trade-show services. Begin your account planning by researching company Websites.

Job Seekers – Use the SP 500 to plan your sales career. These 500 companies employ the largest sales forces in America. Large companies invest significant amounts of dollars in recruiting, training and rewarding their sales staff. For job openings, log on to the companies’ Websites.

– Use the SP 500 to plan your sales career. These 500 companies employ the largest sales forces in America. Large companies invest significant amounts of dollars in recruiting, training and rewarding their sales staff. For job openings, log on to the companies’ Websites.

Educators – Use the SP 500 as a tool to build next year’s curriculum. Every year, SP 500 companies seek to recruit 500,000 college graduates. There are more than a dozen colleges that offer sales curricula, and all of their graduates can look forward to solid careers in sales. Prepare your future students for a lucrative career in sales. (Note: Media research shows that the average Selling Power reader has a college degree, works in sales management and has a household income of more than $174,000 per year.) •

– Use the SP 500 as a tool to build next year’s curriculum. Every year, SP 500 companies seek to recruit 500,000 college graduates. There are more than a dozen colleges that offer sales curricula, and all of their graduates can look forward to solid careers in sales. Prepare your future students for a lucrative career in sales. (Note: Media research shows that the average reader has a college degree, works in sales management and has a household income of more than $174,000 per year.) •