30 Minutes to President's Club | No-Nonsense Sales The Art & Science of Quota Setting: Get It Right or Lose Your Team | 30MPC Playbook (Lead)
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Feb 27, 2025 Dive into the art of setting fair, motivating sales quotas! Discover the crucial balance of 70% attainment and participation for team success. Learn how using historical data can shape realistic quotas and avoid the pitfalls of feast-or-famine environments. Explore effective communication strategies for quota changes to maintain morale. Understand the interplay between customer acquisition costs and commission strategies, especially in the SaaS landscape. This conversation emphasizes the importance of a supportive sales culture and data-driven decision-making!
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Attainment vs. Participation
- Attainment is the average quota achieved across all reps.
- Participation is the percentage of reps hitting quota; these metrics reveal different team dynamics.
Fair Quota Attainment
- Aim for 70-80% quota attainment to create a positive, winning environment.
- Prioritize attainment over overly high OTEs to retain employees.
Financial Realities of Quota Setting
- Ensure quota setting aligns with financial realities and desired profit margins.
- Consider commission costs and customer acquisition costs (CAC) when setting quotas.