Quotas shouldn't be used as a false comfort to cover a revenue target. Instead, they should philosophically reflect the work's difficulty. Harder, strategic sales motions—like Figma's—deserve more achievable quotas (e.g., 3-4x OTE) to reward and retain top talent capable of that complex work.

Companies set quotas as revenue targets, but for most reps, these become mental limits. Top performers ignore these external lag indicators and instead focus on their own internal lead indicators and what is possible, which allows them to consistently shatter perceived limitations and redefine success.

QXO's compensation plan demonstrates a high performance bar. In fiscal 2025, despite hitting 95.4% of the revenue target, executives received zero short-term incentive payouts because the company failed to meet its adjusted EBITDA target, signaling a focus on profitability over pure growth.

To solve the persistent issue of sales and marketing misalignment, structure executive compensation around shared company revenue goals. When leaders' bonuses depend on overall revenue attainment rather than departmental metrics like pipeline or MQLs, it forces genuine collaboration and a unified focus on winning.

With only 12% of product teams finding profit-centric goals rewarding, leaders must reframe work. By connecting business outcomes to the emotional, human progress customers are trying to make, leaders can inspire teams far more effectively than with revenue targets alone.

Viewing quota as a lagging indicator, Figma's CRO warns that managing to the number creates "lazy leadership." Performance management should instead center on a detailed framework of inputs: behaviors (e.g., collaboration) and competencies (e.g., discovery skills), giving a real-time view of a rep's effectiveness.

In a tough market, sales results slow down, which can demotivate a team that thrives on closing deals. To counteract this, leaders must shift their rewards. Instead of only celebrating wins, they should actively and publicly celebrate the consistent daily activities and behaviors that will eventually lead to success.

Systematically sharing success stories about closing high-value deals is a powerful motivational tool. Hearing about a colleague's major win taps into the inherent competitiveness of salespeople, making them want to achieve a similar outcome and shifting the team's collective focus.

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.