Sales Quota

A sales quota is the performance or production expectation that sellers must achieve during a set time period to earn their target variable incentive compensation (VIC). Quotas are also called goals, plans, targets, nuts, etc. and can increase or decrease the seller’s motivation depending on how realistic the salesperson perceives the target to be. All too often, companies over-assign quota to ensure they achieve topline revenue targets but in doing so, demotivate sales teams which often leads to chasing off top performers.  A lot of work goes into proper quote planning.