Icyveins

Strategic Account Executive

Quota changes based on territory

For those of you been in SaaS across multiple territories, I'm curious to understand if there's a haircut given to quota targets based on the territory. Example Selling to Eastern Europe vs Western US?

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Sunbunny31

Politicker

Sr Sales Executive 🐰

If your company is doing it right, they're using TAM (total addressable market) as part of their calculations. If they are, then some areas would have a lower TAM and therefore should have lower quotas to match those expectations.

Icyveins

Executive

Strategic Account Executive

TAM for us though in developing countries shows as higher because of the number of people employed in the field but these individuals may not be big cost to the company. So the tend to hire people as opposed to tools. In this case, they still don't have budgets for big software purchases

Sunbunny31

Politicker

Sr Sales Executive 🐰

So if I’m following, the preference in developing countries is to hire rather than spend on software. I’m not sure why that wouldn’t be taken into account, because that affects TAM.

SoccerandSales

Big Shot

Account Executive

I see it as common, if it is an "easier" territory, then usually will have higher quota associated with it

Diablo

Politicker

Sr. AE

Yes it’s exists in my company as well, so I am assuming it’s common

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Depends on the pool of leads. If the pool is smaller, they should provide you some level of quota relief.

jefe

Arsonist

🍁

There absolutely can be, but isn't always. As @Sunbunny31clearly articulated, there should be actual calculation and thought into the determination of quotas, and TAM is a huge part of it.

CuriousFox

WR Officer

🦊

Totally depends on the company.

Kosta_Konfucius

Politicker

Sales Rep

I have seen based off of location, but have based on accounts and products

aSaaSinator

Good Citizen

Sales Director

Sunbunny31 has given a great answer. I, too, would say there should be quota changes by region or territory. It has to do with a lot of different data points. You can see quota changes for companies that sell to SMB's because they are truly local or regional players and thusly are used to the relative pricing in their area. However if you are selling to Enterprise clients in the same region you may find that all of your Enterprise counterparts have the same quota (unless a territory appears to have less opportunity in it).

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Icyveins

Quota changes based on territory

10 comments

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