Revenue Sales Quota Example
Posted: Tue Dec 17, 2024 5:55 am
A simple way to set sales quotas is to use revenue as the goal. That means each salesperson will be responsible for generating a specific amount of revenue each month or quarter. While this is a fairly simple sales quota, you can customize it to fit the needs of your business and your sales team. For example, you can incentivize reps to sell certain products by breaking the larger revenue quota into smaller chunks.
Jonathan is responsible for meeting a revenue sales quota of $2,500 per month. Based on historical data, he knows he needs to sell about 75 $33 skates to meet the quota. However finance directors email lists if your sales manager breaks down the revenue goal by product, Jonathan may have more flexibility by selling fewer, more expensive skates or targeting the low-hanging fruit by selling a larger quantity of less expensive skates.
How to Calculate a Sales Quota
A common rule of thumb is that 80% of your sales team should be able to meet their quota most of the time. If that's not the case, consider that your sales quota might not be realistic. To fix this, recalculate it based on more attainable goals. Here's a step-by-step guide to setting a realistic sales quota for your team.
Step 1: Set Your Baseline
A baseline is the minimum performance standard for your sales organization. It's important to set a realistic baseline to understand how many deals your sales team needs to close to meet the basic needs of your business.
To establish a baseline, look at the revenue your sales team closed over the past 12 months. Divide that number by 12 to understand exactly how much revenue your team should be generating each month.
From there, adjust that number to account for territories, reps, time off, and seasonal fluctuations. If your East Coast territory has fewer market opportunities than your West Coast territory, sales managers should adjust each team's referral quota accordingly. As a result, your referral quota will likely be different by quarter.
Jonathan is responsible for meeting a revenue sales quota of $2,500 per month. Based on historical data, he knows he needs to sell about 75 $33 skates to meet the quota. However finance directors email lists if your sales manager breaks down the revenue goal by product, Jonathan may have more flexibility by selling fewer, more expensive skates or targeting the low-hanging fruit by selling a larger quantity of less expensive skates.
How to Calculate a Sales Quota
A common rule of thumb is that 80% of your sales team should be able to meet their quota most of the time. If that's not the case, consider that your sales quota might not be realistic. To fix this, recalculate it based on more attainable goals. Here's a step-by-step guide to setting a realistic sales quota for your team.
Step 1: Set Your Baseline
A baseline is the minimum performance standard for your sales organization. It's important to set a realistic baseline to understand how many deals your sales team needs to close to meet the basic needs of your business.
To establish a baseline, look at the revenue your sales team closed over the past 12 months. Divide that number by 12 to understand exactly how much revenue your team should be generating each month.
From there, adjust that number to account for territories, reps, time off, and seasonal fluctuations. If your East Coast territory has fewer market opportunities than your West Coast territory, sales managers should adjust each team's referral quota accordingly. As a result, your referral quota will likely be different by quarter.