Historically, sales reps were assigned quarterly quotas and expected to hit their number. Only, as inside sales and web-based sales have grown in popularity, the quota time frame hasn’t changed with it. Today, high velocity sales reps need monthly, not quarterly, quotas.
Here are a few benefits of monthly sales quotas:
- Monthly quotas keep the focus on a steady stream of deals, not the more common lumping of deals at the end of the quarter
- Monthly quotas keep the activity volume high as there’s a need to ensure open opportunities at all stages of the funnel
- Monthly quotas make it clear where every rep stands, every week, with regard to deals won, not just weighted pipeline, resulting in a more predictable revenue stream
Entrepreneurs would do well to implement monthly sales quotas and develop a modern sales team.
What else? What are some more thoughts on monthly sales quotas?
3 thoughts on “Monthly Sales Quotas”
David, this gives me heartburn nearly every day. I’m not sure if you answer questions here, but I’m curious: In your view, what kind of ACV is “high-velocity,” whereby you think reps need a monthly v. quarterly quota?
If anyone else stops by who has hands-on experience with this thorny issue, would love your thoughts too.
I think if your average sales cycle is less than 90 days and reps are already closing 5+ deals per quarter, there’s enough velocity to do monthly sales quotas.
Thank you David. I’ll ponder that!