What is Sales Quota?

Sales Quota is the targeted total number of sales that a team or an individual aims to achieve. Sales quota is defined with a tie constraint - set to be reached monthly, quarterly, or yearly. The unit of measurement of sales quota can be with respect to revenue generated or no. of unit sold/deals closed.

Sales quotas are routinely assigned to sales reps, teams or division according to the expected performance. Sales quotas are like assignments or goals, which are targeted to be achieved in a specified time period.

Types of Sales Quota?

• Direct Quota: Direct quota is referred to the goal assigned to individual sales reps who play a “front line” role and have the power to impact a quota in their hands, and the potential to achieve assigned quota single-handedly.
• Overlay Quota: Overlay quotes is like the super-set of all direct quotas.It is the summation of all the direct quotas under them. For example, a sales manager has an overlay quota, which is the sum of all of the rep direct quotas under them. Likewise, a sales VP holds an overlay quota above that sales manager, and so on.