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Quota

A quota is the revenue or deal target a salesperson is expected to hit in a set period, usually a month, quarter or year. It's the yardstick a sales role is measured against, and it underpins commission, forecasting and capacity planning. A healthy quota is set so a competent rep can reasonably reach it while stretching, commonly four to six times their on-target earnings, so the role pays for itself with margin to spare.

For a founder, quota is how you turn a revenue goal into a hiring plan. If you need 1.2 million in new sales and a rep carries a 300,000 quota, you can see you need four productive reps, plus ramp time before they're productive. Setting quota too high demoralises the team and inflates your forecast; setting it too low burns cash on under-leveraged hires. Quota also keeps you honest about whether your own founder-led selling is scalable.

Articles

  • Article

    Identify and remove the bottlenecks between sending a proposal and getting the signature so deals close faster.

  • Article

    Build a library of responses for common negotiation scenarios including price pushback, competitor comparisons, and deal stalls.

  • Article

    Systematically categorise and review why deals are lost to find the most fixable failure points in your sales process.

  • Article

    Create the touchpoints after signing that reinforce the buyer's decision, set expectations for onboarding, and start the relationship well.

  • Article

    Design the internal handoff from sales to delivery so customers experience a smooth transition and nothing gets lost along the way.

  • Article

    Create a step-by-step process from verbal agreement to signed contract so nothing falls through the cracks at the finish line.

All 94 articles under Pipeline management
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