|Overview: Sales Quota|
|Definition||A revenue target for individual salespeople, teams and departments.|
|Value||Motivation and goal setting|
|Related Concepts||Sales Management|
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What is a Sales Quota?
John Spacey, updated on November 12, 2016
A sales quota is a revenue target that is set for sales departments, teams and representatives for a period of time such as a month or financial quarter. In addition to revenue, additional targets and conditions may be attached to a quota such as a minimum gross margin. In other cases, sales quotas are simply expressed in product units such as "10 cars a month."It is common for sales commissions and incentives to be tied to a quota. Setting sales quotas is a sales management function that involves a tradeoff between aggressive quotas that are difficult to achieve or quotas that set realistic expectations. In some cases, aggressive quotas backfire as they decrease motivation and become more of a dark joke that a serious target.
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