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9 Examples of a Sales Quota

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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. The following are common examples of a quota.

Revenue Quota

A monthly or quarterly revenue target such as a software salesperson with a quota to close $100,000 a month.

Unit Sales Quote

A quota based on a number of units such as 22 cars a month.

Customer Acquisition Quota

The number of customers you sign in a month. For example, a data services sales team with a quota to sign 50 customers a month.

Cross-Selling Quota

A quota for add-ons of related products and services. For example, an electric car salesperson with a quota to sell 15 charging systems a month.

Up-Selling Quota

A quota for upgrades. For example, a cloud platform salesperson with a target to upgrade 5 existing business customers every month to a more expensive enterprise version of the service.

Margin Quota

A target for average margins such as a salesperson for a homebuilder with a target to achieve 30% gross margins in a quarter.

Activity Quota

Quotas for sales activities such as demos and proposals. For example, an aircraft sales person who is expected to deliver at least 10 demos a month.

Retention Quota

Sales people who are expected to manage customer relationships and retain accounts may have a retention quota such as a 90% customer retention rate in a year.

Lead Generation Quota

A quota for generating qualified leads such as 100 leads 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.
Overview: Sales Quota
Type
Definition
A revenue target for individual salespeople, teams and departments.
Value
Motivation and goal setting
Related Concepts
Next: Sales Goals
More about sales management:
Customer Data
Deal Desk
Demand Risk
Forecasting
Goal Setting
Lead Generation
Post-Sales
Production Line
Productivity
Revenue Operations
S&OP
Sales
Sales Cycle
Sales Goals
Sales Management
Sales Objectives
Sales Pipeline
Sales Planning
Sales Process
Sales Quota
Sales Risk
Sales Strategy
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