David Cummings on Startups

Monthly Sales Quotas

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David Cummings

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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?

Comments

3 responses to “Monthly Sales Quotas”

  1. David Rosendahl Avatar
    David Rosendahl

    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.

    Reply
    1. David Cummings Avatar
      David Cummings

      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.

      Reply
      1. David Rosendahl Avatar
        David Rosendahl

        Thank you David. I’ll ponder that!

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