Quotas Need to be Measurable and Attainable

The better your sales reporting and analysis the more accurate your quota setting can be. When setting quotas think about the attainable outcomes and what results you desire once the actual revenue is counted. In addition to the numerical outcomes you also need to consider the effect your quotas will have on motivation and morale.

The measurable part of this needs to be thought out ahead of time. Too often this is an after thought causing an inordinate amount of work to figure out who sold what.

Quotas need to be set so your compensation plan can reward those who meet and exceed quota while letting those who under perform see how their lack of performance negatively affects their commissions.