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?
David Cummings on Startups 
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!