Question for CRM sales managers/sales reps. How do you allocate reps and territories?

Working on an assignment and need some additional contest. For anyone who is into sales of CRM solutions. What are the most important drivers of companies you target. For example –

1) Does the size (number of employees) affect the amount of potential revenue. Would you expect more revenue from a 6 – 10 employee organization vs 1 – 5 employees?

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2) If you had to pick a choice between targeting 13 companies with 1000 – 5000 employees, vs 35 companies with 500 – 1000 employees, which would your priority to target.

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3) If you had to pick how you allocate sales reps within a territory, would you divide sales reps by company size or by industry?

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I know there is a lot more than can be covered that you would consider, I just need a general idea of how you prioritize sales in your territories. Also any useful resources you can point me to on this topic will be much appreciated.