Estimation question

Estimate the ROI a sales team gets from Clay vs. manual research.

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What this question tests

Tests structured estimation comparing a paid tool's cost to the fully loaded cost of the manual alternative it replaces.

How to approach it

  1. Define the manual baseline: assume a sales development rep spends 2 hours a day manually researching and enriching prospect data, at a fully loaded cost of roughly 50 dollars an hour, including salary and overhead.
  2. Calculate manual cost: 2 hours times 50 dollars is 100 dollars a day per rep, or roughly 25,000 dollars a year per rep assuming 250 working days.
  3. Estimate Clay's cost: assume a team of 5 reps on a Clay plan costing roughly 15,000 dollars a year combined, covering both software and adjusted time spent using the tool instead of manual research.
  4. Estimate time saved with Clay: assume research time drops from 2 hours to 20 minutes a day per rep, freeing roughly 1 hour 40 minutes a day for actual selling activity.

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