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Quota or no quota?

Hey all,


It's been a topic that was heavily debated within the sales community in my city.


Some went as far as saying removing individual quotas completely actually improved results and happiness for everyone all together. Basically moving to team goals only.


As expected, including myself, there was some intense feedback against removing individual quotas. Are overachievers still being compensated fairly and underachievers rules out as supposed?


Very interested in what you all think about this.

Individual Quota should last
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🧒 Sales Management
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3
ThatannoyingSDR
Opinionated
+2
Enterprise SDR
Maybe there's a happy medium?Β 
Overall team targets = cash bonusses andΒ 
Personal targets = personal incentives
That way I'm personally motivated to hit my goals, but financially motivated to get my entire team up to scratch. What do you think?Β 
Selichimorpha
Politicker
+7
Growth Executive
This is how we do it and it builds a lot of comradery especially on closing day.
antiASKHOLE
Politicker
+8
Inside Sales Lead
My thing is, there should be a group goal, however, there needs to be individual goals/targets as well.Β 

If you move to solely a general group goal, then the bottom performers are still being rewarded for the efforts and results of the top performers. There are several studies that show how this concept won't work. More of a socialistic approach to sales removes incentive to be a high achiever.Β 
BlueJays2591
Politicker
+6
Business Development Manager
I believe there needs to be individual quotas and there should be a huge gap in compensation for top performers and under performers. If you perform, you should be rewarded. If you don't, you should feel uncomfortable with your take home pay. Too often underperformers will sit on a decent salary until they get canned. Moving to a team quota will just make this issue worse.Β 
Soiboi
Politicker
+5
Account Executive, EIAS/Compliance
Improves happiness but I wonder what the net was the on the org. Why should I be working harder if my buddy over there's good for the Q or year. I had a structure like this once and I had to do a lot of work to cover the gap a rep on my team made with his 2 hour walks and lunches and no prospecting etc.Β  With the right cookies sure it could work.Β 
mrjve
Good Citizen
Account Executive
Well, basically you can rule these slackers out by addressing it in the team meetings. But I also do belief almost nobody will ever stand up.Β 
Soiboi
Politicker
+5
Account Executive, EIAS/Compliance
Lol he was on the team for 9 months and we had a 1.5M quota. We addressed it for sure just took too long.Β 
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DadFather
Politicker
+5
Enterprise Account Executive
Would love to see the other side of this - do companies with no personal quotas achieve similar financial targets?? Personally, if i didn’t have a quota, some level of motivation to overachieve would be lost (i think).Β 
AlexT
Politicker
+7
Account Executive
Quotas are essential, they provide responsibility and accountability which helps you get to the next level of performance. It keeps you focused.Β 
wHaTyAgOtCoOkInG
Catalyst
+4
Account Executive
hmmmm, at the end of the day we know our OTE going in to the gig. If I can still get that or overachieve, i'll consider it. Bank is bank.
Smithy
Politicker
+4
Director of Sales
I am a big believer in individual quotas. The biggest problem I see with them is they keep going up based on no real metric other than β€˜growth’ 

once we actually have sales leaders that understand that productivity comes first, they understand what sales reps can actually sell and target based off of that, all while having buy-in/alignment with marketing to produce that many leads; then quotas will continue to be missed by most.Β 

Oh and that’s alongside PMF and having your ICP nailed.Β 
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