kelun8

Monthly vs Quarterly Quota

I'm currently on a quarterly quota plan and new head of sales wants to change to monthly quota next year, which is getting some mixed feelings for us AEs. Most of us never had a monthly quota besides in our previous SDR roles except one person, who mentioned they liked it because it was easier to hit the accelerators, which I can see the benefit there and also getting a monthly commission check.

For context, average sale cycle is about 30-40 days, $20-$35k ACV into mid market.

Curious to hear other's experience and the pros/cons, cheers!

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MCP

Valued Contributor

Sales Director

Make no mistake, your quota is annual, it’s just being broken down to help you stay focused and deliver with consistency vs feast or famine. Monthly quotas are good for transactional sales cycles (<30 days). The reality is, if you have enough pipe, you shouldn’t stress about hitting quotas.
Some places use them to weed people out, like if you miss 3 months in a row following a ramp period, but again, it’s about sales cycles. Honestly, I hate hearing about people who did 173% in a month, but are really still short of quarterly and / or annual goals.
End of line.

Mjollnir

Politicker

Account Executive

we have monthly targets AND quarterly targets. basically management is pushing us super hard.

I think this is one of the reasons many have left the company

Diablo

Politicker

Sr. AE

Have a monthly target and considering sales cycle to be lesser than yours works pretty well for us

FormallyUneducated

Opinionated

Account Executive

Quarterly quota with a monthly goal to make sure you’re on pace is the way to go.

ryan_howard

Politicker

Director, Business Development

I’ve only worked in very long complex sales cycle (9-18 months)
“Quota was always annual and tracked quarterly but my management was always reasonable about timing given cycle time.

JaySaastby

Politicker

Account Executive

I prefer Quarterly. Monthly quota was super stressful in my experience. I agree with you about the accelerators. But a lot of companies pay commission monthly dependent o quota percentage attainment even if the quota is quarterly FYI.

CharmingSalesGal

Politicker

Account Executive

I'm in my first ever quarterly quota position and I enjoy it much more than monthly because things can shift and one deal can make/break a month but it shouldn't be a make/break for a quarter...

Sunbunny31

Politicker

Sr Sales Executive 🐰

I work in a business with a long sales cycle, so quarterly quota targets are what we have.

SaaSam

Politicker

Account Executive

I've been in both, currently have a monthly quota. My favorite was a hybrid. Basically, the carrots were within the monthly quota attainment but the stick came out if you missed your quarterly quota.

I liked it a lot because I stressed less about quota. Knowing if I fell short one month or if something didn't close when I was expecting it I was likely okay because I still had the rest of the quarter to close.

You could have called our monthly quotas goals instead of quotas but that's what the company called it.

Currently, I only have a monthly quota and my residuals depend on hitting quota. You miss by even a little you don't get your residual commission for that month but you'll still comp out on net new. I kind of like it.

newsalesguy14

Politicker

Account Executive

I'm on monthly and quarterly. Basically a and/or situation. Don't get me wrong, you want to hit your monthly quota. But if you have a bigger month after missing, hitting the quarterly number is what matters most.

saasibee

Opinionated

Enterprise Rep

I've had monthly at my previous 2 jobs and am on quarterly now. Monthly was terrible at one of them because the sales cycle was probably too long for a monthly quota to make sense and it would result in reps hitting one month and missing the next. The second I didn't mind because the sales cycle was pretty short (~2.5 weeks). Now that I'm on a quarterly target I don't think I could go back to monthly, I feel like I have some more room with my life outside of work if I want to take an extra vacation day because I'm not thinking about only having X more days to hit quota that month.

CuriousFox

WR Officer

🦊

Enterprise works better with annual quota because of the deal sizes. Monthly and quarterly are better with smaller deals.

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kelun8

Monthly vs Quarterly Quota

12 comments

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