[GTM glossary](/glossary.txt) Coverage model Market & Targeting # Coverage model In short A coverage model is the plan for who sells to which accounts. It sets how you split your market among sellers and which roles work each account, such as an SDR, an AE, and a customer success manager. A good coverage model matches effort to account value. It makes sure no target account is unowned, and no two reps chase the same one. ## Common coverage models * **Geographic:** Reps own regions, countries, or states. Simple to run and good when local presence matters. * **Segment-based:** Reps own company-size bands such as SMB, mid-market, or enterprise. Each segment gets a motion that fits its deal size. * **Industry or vertical:** Reps specialize in an industry and learn its language and buyers. * **Named account:** Reps own a fixed list of accounts regardless of location. Common in account-based selling. * **Hybrid:** A mix, for example named accounts for the top tier and geography for everyone else. --- ## How to design one ### 1. Size the market Count the accounts that fit your ideal customer profile and group them by segment. You cannot split what you have not counted. ### 2. Decide the unit of ownership Pick territory, segment, industry, or named list. Choose the one that best predicts how much work an account needs. ### 3. Balance the load Estimate how many accounts one rep can work well. Say a rep can run about 60 active accounts at a time. A segment of 600 accounts then needs roughly ten reps, or a lighter motion for the lower tiers. ### 4. Assign roles and handoffs Define who prospects, who closes, and who owns the account after the sale. Write the rules for moving an account between owners. --- ## Coverage model vs. territory plan A coverage model is the overall strategy for how accounts are split and which roles work them. A territory plan is the detailed assignment of specific accounts or regions to specific reps. The model comes first; the plan applies it. --- ## Common mistakes * **Uneven territories:** One rep gets rich accounts while another gets dead ones, which hurts morale and results. * **No tiering:** Treating every account the same wastes effort on low-value ones. * **Gaps and overlaps:** Accounts with no owner go cold, and duplicate owners create conflict and confused buyers. * **Never revisiting:** Headcount, products, and markets change, so review the model at least once a year. --- ## Coverage model FAQs **What is a sales coverage model?** A sales coverage model is the plan for how a team divides its market among reps and roles. It sets whether accounts are owned by geography, segment, industry, or named list, so every target account has an owner and effort matches value. **What are the main types of sales coverage models?** The main types are geographic, segment-based by company size, industry or vertical, and named account. Many teams use a hybrid, such as named accounts for top-tier targets and geographic territories for the rest of the market. **How do you build a coverage model?** Size your addressable accounts, choose the unit of ownership, estimate how many accounts a rep can work well, and divide the market evenly. Then define roles and handoffs between SDRs, AEs, and customer success, and review it yearly. **What is the difference between a coverage model and a territory plan?** The coverage model is the strategy for how accounts are divided and who works them. The territory plan is the concrete list of accounts or regions assigned to each rep under that model. Share term --- ## More related phrases * [Sales coverage](/glossary/sales-coverage.txt) * [Account coverage](/glossary/account-coverage.txt) * [Territory design](/glossary/territory-design.txt) ## Similar phrases * [Sales territory](/glossary/sales-territory.txt) A sales territory is a defined set of accounts, usually grouped by geography, industry, or size, assigned to a rep or team so coverage is clear and effort is balanced. * [Territory planning](/glossary/territory-planning.txt) Territory planning is the up-front process of sizing a market, choosing a coverage model, and designing sales territories and targets so the team can capture the available opportunity. * [Territory carving](/glossary/territory-carving.txt) Territory carving is the act of dividing accounts or geographies into separate territories and assigning them to sellers so that workload and opportunity are balanced and coverage is clear. * [Account tiering](/glossary/account-tiering.txt) Account tiering groups target accounts into tiers by fit and potential value, so the highest-value accounts get the most personalized effort. * [Territory management](/glossary/territory-management.txt) Territory management is the ongoing practice of defining, assigning, monitoring, and adjusting sales territories so reps cover the right accounts and market opportunity is not missed or duplicated.