How to Handle Overlapping Sales Territories

The Overlapping Territory Problem

Most sales teams have overlapping territories. Multiple reps cover the same accounts. Boundaries aren't clear. Conflicts arise. Deals get lost. Customers get confused.

Overlapping territories create problems. They create conflict between reps. They confuse customers. They hurt performance. They damage relationships.

Here's how to handle overlapping sales territories — how to prevent conflicts, resolve disputes, and create clear boundaries.

Why Overlapping Territories Happen

Overlapping territories happen for several reasons:

Unclear Boundaries

The problem: Territory boundaries aren't clearly defined. Reps don't know where their territory ends and another begins.

Why it happens: Territories are created without clear boundaries. Boundaries aren't documented. Boundaries change over time.

The impact: Reps compete for the same accounts. Conflicts arise. Performance suffers.

Account-Based Overlap

The problem: Accounts fit multiple territories — multiple industries, multiple geographies, multiple segments.

Why it happens: Accounts have multiple attributes. They fit multiple territory criteria. Assignment rules aren't clear.

The impact: Multiple reps claim the same accounts. Conflicts arise. Customers get confused.

Territory Changes

The problem: Territories change over time. New territories are created. Existing territories are modified. Overlap is created.

Why it happens: Markets change. Teams grow. Territories are restructured. Changes create overlap.

The impact: Existing assignments become unclear. New overlap is created. Conflicts arise.

Lack of Rules

The problem: There are no clear rules for handling overlap. No process for resolving conflicts. No ownership assignment.

Why it happens: Territory planning doesn't include overlap rules. Conflict resolution isn't defined. Ownership isn't clear.

The impact: Conflicts escalate. Disputes aren't resolved. Performance suffers.

How to Prevent Overlap

Here's how to prevent overlapping territories:

Define Clear Boundaries

What to do:

• Define territory boundaries clearly
• Document boundaries in territory plans
• Use geographic, industry, or account-based boundaries
• Make boundaries specific and measurable

Why it matters: Clear boundaries prevent overlap. Reps know their territories.

How to do it: Define boundaries when creating territories. Document in territory plans. Share with team.

Assign Accounts Specifically

What to do:

• Assign accounts to specific reps
• Avoid shared account ownership
• Use clear assignment rules
• Document assignments

Why it matters: Specific assignments prevent overlap. Reps know their accounts.

How to do it: Assign accounts when creating territories. Use assignment rules. Document assignments.

Create Assignment Rules

What to do:

• Create clear assignment rules
• Define criteria for assignment
• Set priority for conflicting assignments
• Document rules

Why it matters: Assignment rules prevent overlap. They ensure clear ownership.

How to do it: Create rules based on territory structure. Define criteria. Set priority. Document.

Review Territories Regularly

What to do:

• Review territories regularly
• Identify overlap
• Resolve overlap immediately
• Update territories as needed

Why it matters: Regular reviews catch overlap early. They prevent conflicts.

How to do it: Schedule regular reviews. Check for overlap. Resolve immediately.

How to Resolve Overlap

When overlap exists, here's how to resolve it:

Identify Overlap

What to do:

• Identify overlapping territories
• List accounts in overlap
• Assess overlap impact
• Document overlap

Why it matters: You can't resolve what you don't identify.

How to do it: Review territories. Identify overlap. Document accounts and impact.

Assess Impact

What to do:

• Assess impact of overlap
• Identify conflicts and disputes
• Evaluate customer confusion
• Measure performance impact

Why it matters: Impact assessment guides resolution.

How to do it: Review conflicts. Assess customer impact. Measure performance.

Apply Resolution Rules

What to do:

• Apply clear resolution rules
• Use priority criteria (first contact, account potential, rep capacity)
• Make decisions based on rules
• Document decisions

Why it matters: Clear rules ensure fair resolution.

How to do it: Define resolution rules. Apply consistently. Document decisions.

Reassign Accounts

What to do:

• Reassign accounts to resolve overlap
• Assign to specific rep
• Update territory assignments
• Communicate changes

Why it matters: Reassignment resolves overlap. It creates clear ownership.

How to do it: Reassign accounts based on rules. Update assignments. Communicate clearly.

Update Territories

What to do:

• Update territory boundaries
• Adjust territories to prevent future overlap
• Update territory plans
• Communicate changes

Why it matters: Updating territories prevents future overlap.

How to do it: Adjust boundaries. Update plans. Communicate changes.

Resolution Strategies

Here are strategies for resolving overlap:

First Contact Rule

Strategy: Assign account to rep who made first contact.

When to use: When there's clear first contact history.

Pros: Rewards proactive reps, clear rule.

Cons: May not optimize for account potential or rep capacity.

Account Potential Rule

Strategy: Assign account to rep based on account potential and rep capacity.

When to use: When account potential varies significantly.

Pros: Optimizes for performance, balances territories.

Cons: May not reward first contact, requires data.

Rep Capacity Rule

Strategy: Assign account to rep with available capacity.

When to use: When rep capacity varies significantly.

Pros: Prevents overload, optimizes performance.

Cons: May not reward first contact, requires capacity data.

Geographic Rule

Strategy: Assign account based on geographic proximity.

When to use: When geography matters for relationships or travel.

Pros: Enables local relationships, reduces travel.

Cons: May not optimize for potential or capacity.

Best Practices

Here are best practices for handling overlap:

Prevent Overlap Proactively

What to do: Define clear boundaries, assign accounts specifically, create assignment rules.

Why it matters: Prevention is easier than resolution.

How to do it: Plan territories carefully. Define boundaries. Create rules.

Resolve Overlap Quickly

What to do: Identify overlap immediately, resolve quickly, update territories.

Why it matters: Quick resolution prevents conflicts from escalating.

How to do it: Review regularly. Resolve immediately. Update territories.

Document Everything

What to do: Document boundaries, assignments, rules, and resolutions.

Why it matters: Documentation prevents future conflicts.

How to do it: Document in territory plans. Update CRM. Share with team.

Communicate Clearly

What to do: Communicate boundaries, assignments, and changes clearly.

Why it matters: Clear communication prevents confusion and conflicts.

How to do it: Announce changes. Explain rationale. Address questions.

The Bottom Line

Handling overlapping sales territories requires:

• Prevent overlap — Define clear boundaries, assign accounts specifically, create rules
• Identify overlap — Review territories regularly, identify overlap, assess impact
• Resolve overlap — Apply resolution rules, reassign accounts, update territories
• Prevent future overlap — Update boundaries, adjust territories, review regularly

Resolution strategies: First contact rule, account potential rule, rep capacity rule, geographic rule.

Best practices: Prevent proactively, resolve quickly, document everything, communicate clearly.

The sales teams that succeed aren't the ones that ignore overlap. They're the ones that prevent overlap proactively, resolve it quickly, and create clear boundaries.

That's how you handle overlapping sales territories — by preventing overlap proactively, resolving it quickly, and creating clear boundaries.