It’s funny:  Nobody thinks their company does a fantastic job of setting quotas, yet everybody hasan opinion about how it should be done.  Thereare several methodologies for setting quotas, and each has its strengths and weaknesses in different circumstances. But that’s a topic for a different time. The point here is that if you want quotas that have consistency andcredibility from year to year, it’s helpful to make some decisions about how youare going to do it, so you don’t either blindly follow a methodology that isn’t working or throw everything open to debate each year.

This is where Quota Principles come in.  They are guidelines that make the process more efficient, as well as more credible. Below are some good questions to ask as you set about putting togetheryour quota principles.

Questions to Ask

Should there be a minimum quota?

Should there be a maximum quota?

How much over-allocation, if any, is warranted?

What information should we use to allocate quotas?

Who should be involved in setting quotas and what should be the process and timing?

Under what circumstances should quotas be adjusted (after the fact)?

Pretty much every sales organization has quotas, even if compensation is not linked to quota attainment. They will be more consistent, credible, and efficiently developed if guided by a set of quota principles.

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Please see whitepaper on this site for more detail.

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