The cost of setting quotas too high is catastrophic: you demoralize and lose your A-player sales team. The cost of setting them too low is manageable: you overspend on commissions but exceed targets and retain a motivated team. The latter can be adjusted; the former is an unrecoverable error.
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Prioritize and reward consistent performance over occasional blowout quarters. Sustained execution, driven by strong foundational activities, is more valuable and reliable than volatile results with huge swings from quarter to quarter.
Instead of focusing on a large quota, leaders should reverse engineer it. Calculate the number of deals needed based on win rate and average contract value, then break that down into weekly opportunity creation goals for reps.
A salesperson who previously worked as a teacher shares a counter-intuitive method for success. By applying a mathematical mindset instead of focusing on the quota number, they consistently overachieved. The secret to crushing a target is to shift focus away from it.
The most effective way for a salesperson to challenge a perceived unfair quota is not through complaints, but through data. By presenting an analysis of their own average deal size, sales cycle length, and win rates, they can build a logical case for what is achievable and force a more constructive conversation with leadership.
Don't hire more reps until your current team hits its productivity target (e.g., generating 3x their OTE). Scaling headcount before proving the unit economics of your sales motion is a recipe for inefficient growth, missed forecasts, and a bloated cost structure.
To exceed sales targets, stop focusing on the final number. Instead, use math to reverse-engineer the quota into controllable daily and weekly activities. Consistently hitting these input goals will naturally lead to crushing the overall output goal without the associated pressure.
Salespeople's biggest frustration with comp plans is being held accountable for outcomes they can't directly influence. This perceived unfairness is a primary driver of attrition, making it critical to align incentives strictly with a seller's direct responsibilities and control.
Sales reps often feel overwhelmed by their large annual number. The key is to break it down, subtract predictable existing business, and focus solely on the smaller, incremental revenue needed. This makes the goal feel achievable and maintains motivation.
Focusing intensely on the sales number, especially when behind, leads to desperate behavior. Customers sense this "commission breath" and back away. Instead, salespeople should forget the outcome and focus exclusively on executing the correct daily behaviors, which builds trust and leads to more sales.
To handle 'bluebird' deals without demotivating reps, avoid hard caps. Instead, implement a policy where commissions exceeding a high threshold (e.g., 400% of variable pay) are 'subject to review.' This protects the company from unearned windfalls while maintaining unlimited potential for legitimate efforts.