Glossary
Quotas
Performance numbers sales reps are expected to reach.
Quotas are performance (or activity) numbers reps are expected to reach on a monthly, quarterly or annual basis. Some organizations tie quotas in with compensation by awarding bonuses or higher commission tiers once quotas are reached, whereas some companies expect reps to reach quotas as a condition of employment (i.e. in exchange for a base salary).
If awarding bonuses/commissions based on quota attainment, then past sales history, sales forecasts, seasonality and more need to be factored in to ensure quotas are accurate and precise. Tying unattainable quotas to rep compensation is a surefire way to lose your sales reps.
Example quotas for an SDR:
-# of appoints scheduler per month
-# of emails sent per day
-# of calls made per day
-% of follow-up tasks completed per week
-% response rate of outbound emails
Example quotas for an AE:
-% of appointment to close
-Average time spent in each deal stage
-Average duration of sales process
-% of follow up tasks completed per week
-revenue/sales goals
Quotas are important for all serious sales organizations simply because they force you to set expectations, track results and seek answers. Quotas may be less important for new companies, or those without much sales history or ability to properly forecast sales and set accurate quotas.
If awarding bonuses/commissions based on quota attainment, then past sales history, sales forecasts, seasonality and more need to be factored in to ensure quotas are accurate and precise. Tying unattainable quotas to rep compensation is a surefire way to lose your sales reps.
Example quotas for an SDR:
-# of appoints scheduler per month
-# of emails sent per day
-# of calls made per day
-% of follow-up tasks completed per week
-% response rate of outbound emails
Example quotas for an AE:
-% of appointment to close
-Average time spent in each deal stage
-Average duration of sales process
-% of follow up tasks completed per week
-revenue/sales goals
Quotas are important for all serious sales organizations simply because they force you to set expectations, track results and seek answers. Quotas may be less important for new companies, or those without much sales history or ability to properly forecast sales and set accurate quotas.