Set Your Team Up for Success: Thinking Through the Quota Setting Process

Setting quotas is both an art and a science. Though different organizations use different acronyms to quantify their quota setting process, all processes aim to answer three fundamental questions:

What is my goal? For example, your goal might be to grow revenue by 15% this year or bring in ten new accounts per sales rep this quarter.

What is my number? How many deals do you need to close to meet your overarching goal? For example, in order to grow your revenue by 15% this year, you may need to close ten new deals per week or to meet your goal of ten new accounts per person this quarter, each sales rep may need to make a certain number of cold calls each day because only a small percentage of those calls will turn into leads or closed deals.
What are we going after? Which companies are most likely to buy your product? Are those the organizations you are targeting, and are your efforts effective?