How Do You Split Territories Between Two Account Executives?

How do you split territories fairly when you hire your second account executive?

Split by a rule both reps can predict, such as segment, industry, or region, then check that each half has a similar number of good-fit accounts and similar pipeline potential. Write down how existing deals, named accounts, and edge cases are handled. Fair means equal opportunity and clear rules, not identical lists.

Hiring a second account executive is a turning point for a small B2B company. With one rep, territory is everything. With two, someone has to decide who gets which accounts, and that decision shapes their earnings, their motivation, and how well your market gets covered.

I design the GTM systems that sit under decisions like this, including the CRM ownership rules and routing that make a territory plan real. Here is how I would approach a first split so it is fair, easy to run, and easy to change later.

What is a sales territory in a small B2B company?

A sales territory is the set of accounts a rep is responsible for, defined by a rule rather than case by case. The rule might be geography, company size, industry, or a named account list. In a small company, the territory decides which inbound leads a rep gets and which accounts they are expected to prospect.

Territories matter because they set expectations. When a rep knows exactly which accounts are theirs, they can plan, prospect deeply, and build relationships. When ownership is fuzzy, reps compete over the same accounts and ignore the ones nobody clearly owns.

Territories also make performance comparable. Two reps with equal territories can be judged on results. Two reps with very different territories cannot, because one may simply have a better patch.

Which ways of splitting territories work best for two reps?

The most common options are by company size, by industry, by geography or time zone, and by named account list. For two reps, a split by segment or industry usually works best, because it lets each rep build expertise. Geography only makes sense when time zones or languages genuinely affect how deals are run.

A segment split, such as smaller companies versus larger companies, works well when the sales motion differs by size. Larger deals often involve more stakeholders and longer cycles. A rep focused on them can specialize in that motion.

An industry split works well when buyers in different industries have different problems and vocabulary. A rep who sells only to healthcare companies learns their language faster than one who sells to everyone.

A geography split is useful when your reps are in different time zones or your buyers need local language support. For a small team selling to buyers across many regions, it can be the most practical rule, as long as the halves are balanced.

Named account lists are best for small, high-value target lists, where each account is worth individual attention. They require more maintenance, because the list must be updated as accounts change.

How do you check that the split is actually fair?

Count good-fit accounts in each half, not just total accounts, and compare historical inbound volume, open pipeline, and past closed revenue for each side. If one half clearly outweighs the other, adjust the boundary. Share the numbers with both reps so the fairness is visible, not assumed.

Total account count is misleading. Two territories with a thousand accounts each can be very unequal if one is full of ideal customers and the other is full of poor fits. Filter by your ideal customer profile first, then compare.

Look at inbound history too. If most of your past inbound leads came from one segment, the rep who owns that segment will receive far more warm leads. That might be fine if the other rep is expected to prospect more, but it should be a deliberate choice.

Tiering your accounts helps here. If you already rank accounts by fit and potential, you can balance the number of top-tier accounts in each territory. My guide on tiering target accounts for a small sales team covers a simple way to do that.

What happens to deals and accounts the first rep already owns?

Let the first rep keep their open deals until they close or die, even if those accounts fall into the new rep's territory. Transfer untouched accounts on day one. For active relationships without an open deal, decide case by case with both reps present, and write each decision down. Grandfathering open deals prevents most early resentment.

The first rep, often the founder or an early hire, may feel they are losing accounts they worked hard to build. Acknowledge that. Protecting open deals respects the work already done and avoids handing a half-finished deal to someone without context.

Set a clear end date for grandfathered accounts. If a grandfathered account has no activity for a defined period, it moves to its territory owner. That stops old claims from blocking new work forever.

Disputes will still happen. Having a simple, written rule for resolving them, agreed in advance, is far better than deciding each one under pressure. I covered that in what to do when two reps claim the same account.

How should inbound leads be routed under the new territories?

Route inbound leads by the same rule that defines the territories. If territories split by company size, route by company size. Enrich each lead with the data the rule needs, such as employee count or industry, before assigning it. Send leads that cannot be classified to a fallback owner or a fair rotation.

The routing rule and the territory rule must match exactly. If territories split by industry but routing uses geography, reps will receive leads from accounts they do not own, and the plan falls apart within a week.

Enrichment is what makes this work. A form submission rarely includes company size or industry reliably. Tools like Clay, Apollo, or your CRM's own enrichment can fill those fields before the routing step runs. Check each tool's official documentation for which fields it provides on your plan.

Some leads will not fit either territory cleanly. For those, a simple round robin between the two reps is fair and easy to explain. My guide on routing leads between two sales reps fairly covers how I set that up in a CRM.

How do you set this up in the CRM?

Add a territory field to companies, set it with a rule-based workflow or a one-time bulk update, and make the company owner match the territory owner. Create views for each rep that show only their accounts. Then build a report that compares accounts, pipeline, and activity by territory each month.

In HubSpot or Salesforce, a territory property on the company record plus an owner field is usually enough for a two-rep team. Dedicated territory management features exist in some CRMs, but they are rarely necessary at this size.

Make the territory value visible on every record. When a rep opens an account, they should see immediately whether it is theirs. Ambiguity at the record level is where most ownership arguments start.

Keep the rule in one place. If the territory logic lives in a workflow, a spreadsheet, and someone's memory, it will drift. One written rule, one field, and one workflow are easier to trust.

When should you revisit the territory split?

Review it every quarter for the first year, and change it when you hire another rep, enter a new segment, or see a persistent imbalance in pipeline. Avoid frequent changes in between, because reps need stability to build relationships. Announce changes in advance and grandfather open deals each time.

A quarterly review should look at the same numbers you used to set the split: good-fit accounts, inbound volume, pipeline, and closed revenue by territory. If one territory consistently produces far more pipeline than the other, it is time to rebalance.

Ask the reps too. They often notice problems before the reports do, such as an entire industry that never responds, or a segment that needs a different kind of seller.

Write down each change and the reason for it. Territory history helps explain performance changes later and keeps future decisions consistent.

What should you do next?

Choose one splitting rule, count good-fit accounts and past inbound on each side, and adjust until the halves are roughly balanced. Write down how open deals and disputes are handled, add a territory field in your CRM, and make routing follow the same rule. Review the numbers every quarter.

A clear territory plan protects both reps, covers your market better, and gives you honest performance data from day one.

If you want help designing territories, CRM ownership rules, or the routing that keeps them working, reach out at pravinkumar.co. Let's chat.