Janek Resources: SPM April 2017

The Sales Leader's Guide to Setting Realistic Quotas

Like staring up from the base of a mountain and imagining the peak of it, sales leaders set quotas they want their reps to reach. However, in some cases, they aim too high and above a doable target, and what results is that they don’t just get the numbers wrong, they can cause serious harm to the organization and its sales reps.

A common practice, but one that can wreak havoc on a sales team, is setting quotas calculated according only to the prior year’s revenue—in other words, based on a reasonable estimated rate of growth. However, this method often proves less than accurate, because it overlooks key variables that influence the yearly growth, like increased competition, market fluctuations and opportunities, new product launches, and expansion...

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