(2 votes, average: 3.5 out of 5)
Loading ...Sales quota are tricky to set because they can be affected by so many factors (and as we’ve seen yesterday, by the economy). After all, how can we really predict how much our sales force will sell before the start of the fiscal year! In most cases, quotas are set based on last year’s performance, growth forecasts, industry trends, and by what your competitors are doing. In the end, most of the companies have to adjust quotas mid-year to ensure that people don’t get demotivated if a majority does not reach their quota, and that the company does not go bankrupt if too many people exceed their quota. 
The main problem with setting quotas based on last year’s performance is that sometimes, our predictions are not accurate… And that’s why we need an easy way to manage these quotas, and to get the ‘big picture’ on how our sales force is performing.
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