← Glossary Sales

Quota

The revenue number a salesperson is expected to close in a period. Their target.

Explained simply.

Quotas are set annually (sometimes quarterly), broken into monthly/quarterly chunks, and tracked obsessively. Typical quota is 4-6x the AE's fully-loaded cost, so a $150k/yr AE has a quota around $750k-$1M. Hitting quota triggers variable compensation (bonus + commission); missing it starts a performance conversation.

An example.

AE annual quota: $1M. Quarterly breakdown: $200k Q1, $250k Q2, $275k Q3, $275k Q4 (weighted toward end-of-year to match selling rhythm). Hit 100%, earn full OTE. Hit 120%+, earn accelerators (higher commission rate on the overage).

Why it matters.

Quota is the forcing function in sales. It aligns individual effort with company targets. Setting quotas too high demotivates; too low and you're paying bonuses for mediocre performance. Good sales leaders calibrate quotas annually against actual historical data.