Sales quota setting data-driven approach

Set fair, achievable, stretching quotas. Inputs: 1. Company revenue goal. 2. Number of reps. 3. Historical attainment (what % hit quota). 4. Market capacity (total addressable market, saturation). 5. Sales cycle length. 6. Average deal size. Bottom-up calculation: Company needs $10M revenue. Reps: 10. Individual quota: $1M each (100% coverage). Add buffer for 80% attainment: $1M ÷ 0.8 = $1.25M quota per rep. Ramping: new reps 0% month 1-2, 50% month 3, 75% month 4, 100% month 5+. Segmentation: enterprise reps higher quotas ($2M), SMB reps lower ($750k). Validation: sanity check with outside data (SaaS benchmarks show similar company size has $1-1.5M quotas). Adjustments: ramp-up time, territory quality, available leads. Review quarterly: if <60% hitting quota, quotas too high. If >90% hitting, quotas too low. Sweet spot: 60-70% attainment rate. Communicate transparently: show math, rationale, FAQ doc.