A sales quota is the target a rep is measured against: how much they're expected to sell in a given period. In most commission plans, the quota is the line that everything else is built around.
Types of quotas
- Revenue quota: a dollar amount of won deals, for example $60,000 a month. The most common type.
- Volume quota: a number of deals or units, useful when deal sizes are similar.
- Activity quota: calls, meetings or demos. Usually for SDRs or new reps, not for commission on its own.
- Profit quota: gross margin instead of revenue, when reps control discounts.
Quota attainment
Quota attainment = actual sales ÷ quota × 100
Example
A rep's monthly quota is $60,000. They close $66,000.
Quota attainment: $66,000 ÷ $60,000 = 110%.
In a plan with a target bonus, reaching 100% unlocks the bonus. In a plan with an accelerator, the extra $6,000 above quota is paid at a higher rate.
Mistakes to watch for
- Setting quotas from wishful thinking. A quota should come from the pipeline and past results, not from what the board wants to hear.
- Changing quotas mid-period. It destroys trust fast. If you must change one, change it from the next period and keep the old version for the past.
- Quota with no visibility. If reps only learn their attainment at month-end, the quota can't change behavior while there's still time.
FAQ
What's the difference between a quota and a goal?
In everyday use they're often the same thing. Strictly, a quota is tied to pay (commission, bonus or accelerators), while a goal can be any target the team tracks.
Does Pipedrive have quotas?
Pipedrive has Goals, which let you set targets for deals won, revenue or activities and track progress. Goals don't calculate commission, though. To connect quota attainment to pay, you need a commission tool such as Delta Drive, where each rep has a monthly target and target bonus.
What happens if a rep misses quota?
That depends on the plan. Usually they still earn commission on what they sold, but miss any target bonus or accelerator. Some plans use a lower rate below a threshold.