Quota
Definition
Quota: A quota is the sales target assigned to an individual salesperson or team for a specific period, typically monthly, quarterly, or annually. Quotas are usually expressed in revenue, deals closed, or other measurable outcomes. Well-designed quotas are achievable but challenging, motivating performance while being fair to the rep.
Example Usage
βOur AEs carry $600K annual quotas with quarterly targets. We aim for 70% of reps hitting quota consistently.β
Common Misconceptions
Related Terms
Sales Pipeline
A sales pipeline is a visual representation of all active sales opportunities organized by stage in the buying process. Pipelines track deals from ini...
Sales Velocity
Sales velocity measures how quickly deals move through the pipeline and generate revenue. Calculated as (number of opportunities Γ average deal value...
Win Rate
Win rate is the percentage of sales opportunities that convert to closed deals. Calculated by dividing closed-won deals by total opportunities (won +...
Average Contract Value
Average Contract Value (ACV) is the average annual revenue per contract, typically used for B2B subscription businesses. It's calculated by dividing t...
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