What is Revenue Per Hour (RPH)?

Revenue Per Hour (RPH) is a productivity metric designed to gauge the revenue a sales representative generates per hour spent actively selling. Developed by Howard Brown, CEO of Revenue.io, RPH shifts the focus from traditional sales metrics like call volume or hours worked to a more impactful question: How much revenue does each hour of selling contribute to the bottom line?

By emphasizing quality over quantity, RPH provides sales teams with a framework for maximizing productivity and achieving more meaningful results without increasing workload.

The RPH Formula: A Simple Calculation with Powerful Insight

The RPH formula is straightforward

Revenue Per Hour = (Annual Revenue Per Rep) ÷ (2,040 hours in a year)

This formula reveals the direct impact of each selling hour, creating a clear, measurable way to drive results.

RPH = Total Revenue Generated / Total Selling Hours

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Key Components of Revenue Per Hour (RPH)

1. Focus on High-Value Activities

• Objective: RPH encourages prioritization of tasks that directly contribute to revenue generation, such as prospect engagement and deal progression. Reps can focus on actions that move deals forward by minimizing time spent on non-revenue activities like CRM data entry or internal meetings.
• Impact: Leaders gain a lens to identify non-revenue-generating tasks and refocus energy on activities that drive growth, ensuring that each selling hour is used to its maximum potential.

2. Efficiency Over Quantity

• Objective: RPH measures productivity by revenue generated per hour rather than hours worked. This metric champions quality over activity volume, pushing leaders to optimize selling strategies to ensure each hour is as productive as possible.
• Impact: Focusing on RPH helps drive higher revenue within existing time constraints, supporting sustainable performance while avoiding burnout.

3. Technology as an Enabler

• Objective: RPH leverages tools like Revenue.io’s Revenue AI to automate low-impact tasks, offering reps more time to engage with prospects. By automating administrative tasks and providing real-time coaching, technology transforms productivity.
• Benefits of Technology-Enhanced RPH:
  • Time Savings: Automated CRM updates, note-taking, and meeting preparation reduce manual workloads.
  • Increased Productivity: Streamlined workflows turn previously unproductive hours into active selling time.
  • Enhanced Sales Performance: Real-time coaching improves call effectiveness, increasing win rates.

4. Measurement & Continuous Optimization

• Objective: RPH gives sales teams a feedback loop with insights into which activities drive the most revenue per hour. Leaders can use this data to refine processes, eliminate time-wasting practices, and invest in high-impact tasks.
• Impact: By tracking and analyzing RPH, sales leaders can optimize strategies and reinforce best practices, creating a culture of continuous improvement and efficiency.

Why Revenue Per Hour (RPH) Matters

1. Boosts Sales Productivity
   RPH emphasizes high-impact selling, pushing reps to focus on value-driven interactions and refine their approach. The result? Enhanced productivity without increasing workload.
2. Reduces Burnout by Focusing on Efficiency
   With RPH, the goal is to work smarter, not harder. Reps can achieve more by optimizing each selling hour without extending their workdays, helping maintain a healthy work-life balance.
3. Transforms Sales Strategy
   Moving from traditional metrics to RPH encourages organizations to focus on the impact of each interaction rather than simply tallying up activities.
4. Empowers Data-Driven Decision-Making
   RPH provides leaders with a clear, efficiency-focused metric. This data enables more informed decisions around training, resource allocation, and process improvements—ultimately driving better results.

Revenue Per Hour (RPH) is more than a productivity metric; it’s a strategic mindset shift. By tracking RPH, sales leaders can ensure that every hour spent selling contributes meaningfully to revenue, fostering a high-performance, results-oriented culture prioritizing impact over activity.

By leveraging RPH, you’re not just measuring productivity—you’re optimizing it, creating a sales team set up for sustainable success and impactful growth.