You have a $1 to spend on development, do you allocate it to your sales reps or your sales mgt team

Thought-provoking question, Bill - assuming that both teams are to be freshly assembled, I would spend the money on the management team.

Poor management will stifle even the most amazing employee. But with good management in place you can rest easy knowing that your team will look to their leadership; therefore, make sure the leadership is the top-of-the-top and the other pieces will fall into place.

Bill - good answer posted by Christopher Ryan - and I would add support learned in a seminar years ago that 80% of sales people are journeymen and 20% are stars. The practical outcome is that if you have, say, 5 sales people you really, really need a good sales manager to identify which are stars and which are journeymen, and help with process and coaching to get the performance up across the whole team.

The journeymen, for example, will tend to waste time on some situations that are either poor prospects, or are being approached with unrealistic goals - I have always found setting the right "intermediate goals" (realistic - doable for the prospect) is the best path to closing the most deals, at the highest prices. And the quality of sales management is what delevers timely coaching, and top performance out of the whole sales team.

Does this help in your specific situation? ....Peter F

It depends on what you're trying to accomplish. Based on your desired outcome, it could be either one... or split it between the two.

Spend it on sales - by way of demand-generation and training.

(I'm making the assumption that this extra-dollar is just that - extra; you have no needs in any areas, but rather 'wants'.)

If that's the case - then likely the management controls you have are fine (most companies overdo this area); the salespeople you have are probably all right, too (most real problems within businesses are procedural, rather than personnel).

That leaves bringing more qualified leads through the door, and ensuring that your salespeople have the right tools to do the job.

Management.
Good managers will coach, teach, train and enable their reps to focus on revenue producing activity, and eliminate time wasting non selling activity. Great football coaches can lead virtually any group of players to a winning season whereas poor coaches, with the same group of players, will have loosing seasons and end up without a job.
A sales manager who can communicate his/her objective in a confident yet encouraging manner will be more successful than one who walks around the office demanding performance. Sales people will respond well to a manager they respect, so invest in person to person skills for your managers. It's not necessarily their job to be liked, but it is there job to be respected and trusted...the numbers will follow.