Stop Setting "Accurate" Quota. Set Fair Targets Instead
How to reduce quota communication challenges - and motivate your sales team to succeed
The start of a new fiscal year, quarter, or month brings excitement about the possibility of achieving the next scale of your organization - you’re looking forward to seeing how far you can take your rocketship company to the next level!
...and you’re also going to need to set quota.
Behind compensation plans, sales targets are routinely the most difficult messages to communicate to the sales team. While both the comp plan and quota impact reps pay, targets are much more tangible - as they go on dashboards and show how reps “stack up” against each other - and therefore elicit a stronger response from the sales team.
Reps understand how hard they worked last year to hit their quotas, and any time the company adds a growth target (however justified) feels like another mountain to climb. After working so hard to achieve last year’s quota, looking forward to next year seems like an impossible task.
So what does the company do? Often we decide that if we set “accurate” quotas, then the reps will understand how the company derived the target and magically fall in line and get ready to crush it.
I’m telling you right now - that rep reaction is a pipe dream, and making “accurate” quotas is a waste of your time.