Team Quota KPI's

Hi Everyone,


I'm a newer Manager whose Revenue team is moving to a Team Quota structure next year where everyone will receive commission on everyone's deals. Loving the idea of it, at least for my org, as it will help reduce friction between our Direct and Channel sales team members.


My question though is what do you all consider to be solid/reasonable KPI's to be measuring in this Team Quota model approach? I don't want to necessarily micro manage activity output like calls and emails sent (especially because I am a firm believer in quality over quantity), but in an effort to be fair and equitable I feel like those more quantifiable KPI's will be my key indicators and factors when performance managing reps.


Anyone have any thoughts or suggestions on KPI's they've used/experienced in this kind of model?

🧢 Sales Management
📊 Metrics
16
funcoupons
WR Officer
11
👑
This model sounds awful. I think I'd rather be pressure washed with warm Fresca than ever have to share my commission with every member of the team...if I wanted communism, I'd move to China. 

I think determining KPIs in this format is going to be incredibly difficult. If you have a savage on the team who does low volume but high value, it's stupid as fuck to get on their case about number of sales. 

tldr: idk
FinanceEngineer
Politicker
2
Sr Director, sales and partnerships
I have to agree, you get paid to close.
braintank
Politicker
4
Enterprise Account Executive
Same. I wouldn't entertain this as an AE, and if my company switched to it I'd be out the door. 
funcoupons
WR Officer
4
👑
actual image of us if they proposed this
funcoupons
WR Officer
6
👑
I actually interviewed at a place earlier this year that said they take 1% of people's sales and distribute it among the AMs/CS etc "so they can have a little something." My only thought was "if u want a lil something u can have all the lil headaches of my lil fuckin sales job." Hard pass.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Definitely a hard pass.   Like tipping out to management because reasons.  No, no, no.
funcoupons
WR Officer
2
👑
Oh hell no OoOOaHh
TennisandSales
Politicker
0
Head Of Sales
hahaha wow THIS is a joke. I am a fan of the team selling model. if you close a deal i get paid if i close a deal you get paid......but ONLY if my commission is not reduced because of this. giving my commission to AM/ CS????? FUCK that
CuriousFox
WR Officer
0
🦊
Peace out ✌
GingerBarbarian
Opinionated
0
Lead Sales
I see both sides, but I know that closing big ticket items is easier with a group approach. I know I am the most tech-y, but I am good at connection. The team approach helps incentivize people working together and using people where they are strongest. 

For instance, I may be great at explaining things in laymen's terms, but not at talking to engineers. If my product needs multiple people in a company on board, I would want the best players to be involved wherever they are in the process. 
poweredbycaffeine
WR Lieutenant
4
☕️
Focus on the outputs:

Discovery Calls Delivered
Ops Generated
Ops Closd
Bookings

That takes out the micromanagement factor and puts the focuses on driving outcomes rather than worrying about the activity.
MaximumMacEffort
Executive
1
Key Account Executive
Thanks for the legit insight! Don't get me wrong, I find some of the ones above amusing if not fucking hilarious, but this is more so what I was looking for :)
Gyro25
Notorious Answer
3
Account Executive
I'm sorry, I thought this was America? But for real, where's the incentive to outperform and outperform your peers if it's all going to spread out. 

As a BDR, it matters less to me, but if I were an AE, I'd be pretty pissed that a % of my deal is going to be taken from me just because. Is there something I'm missing here? I don't see why top performers would stick around if the system works against them. 
TennisandSales
Politicker
0
Head Of Sales
what is the commission was not spread around? what if you make your full commission on a deal no matter who closed it? 

Thats what i have an its incredible. I close a deal? i get full commission. so does the other AE. they close a deal? they get full commission....so do it. 

pretty legit. 
CuriousFox
WR Officer
3
🦊
This sounds stressful. 
TheOverTaker
Politicker
2
Senior Account Executive
sounds painful. always gonna have someone pullin more weight
Beans
Big Shot
2
Enterprise Account Executive
I wouldn't like this at all.

What was the reasoning behind the move? 
MaximumMacEffort
Executive
0
Key Account Executive
Appreciate the question Beans. Reason behind the move was to instill better collaboration and reduce friction between our direct and channel sales teams. It was also done to help rightsize the gap between direct and channel sales teams' commissions (which will all be equal moving forward).

Sounds scary in concept, but that is only if you have people that don't actually pull their weight. Luckily, I believe we have just the right kind of people at the company to make this kind of model work without creating resentment.
TennisandSales
Politicker
1
Head Of Sales
I think you need to clarify how commission is getting paid out. 

if one AE closes a deal worth 10K commission, are you spreading 10K to the whole team? 

because in that case. NO WAY. 

How it works on my team is a team selling model. so we as a team have a quota to hit, (quarterly). If we hit the number, we all get paid. commission is not reduced / spread out amongst the team. 
Rallier
Politicker
1
SDR Manager and Consultant
Damn a lot of negative people in this thread. I actually had a similar structure once. 50% of commission was individual based, and 50% was team based. It was great if you had a bad quarter because you could still earn some commission. There wasn't as much of a reason to hide tactics. And you actually get pumped when other people close deals.
MaximumMacEffort
Executive
1
Key Account Executive
Thank you Rallier! Exactly what we are going for too: build more cohesion and comradery, give ability to celebrate wins more often (while amking everyone feel good about them), etc.
PhlipOut
Politicker
0
Account Executive
no clue, but super interested in this thread!
TennisandSales
Politicker
0
Head Of Sales
I am on a team selling model right now and its incredible. 

Especially in ENT sales where deal cycles are 12 - 18 months. our team crushed it and we all made over OTE. 

I didnt close any deals. 

This quarter I am the only one with deals closing and will get the team to 100% of quota. 

I think it is the BEST way to promote true team selling. 

everyone wins. 

I do agree with others. KPIs in this instance is hard. From my standpoint as long as each member of the team has qualified deals in the pipe everything will work out. 

thoughts?
MaximumMacEffort
Executive
1
Key Account Executive
Thanks for sharing TennisandSales! Glad to hear you've found this model to be successful where you are, especially since we too have longer deal cycles and are rolling this out as a means to help curve for the valleys and hopefully create more peeks throughout the year!
TheMatador19
Member
0
Head of Sales
Not sure what you're selling, but focus on the metrics that matter.  Opps created, demo's completed, deals closed.  You'll have to monitor for a few months and then re-assess.  If someone is lacking in these KPI's, it's time to start micro-managing calls/emails.  Shape up or ship out. 
MaximumMacEffort
Executive
0
Key Account Executive
Thank you for the legit engagement TheMatador19!
GingerBarbarian
Opinionated
0
Lead Sales
What about basing it on appointments? Whether those appointments happen by Zoom or in person does not matter as much, but as long as they spend 20+ minutes on an appointment they are likely able to go pretty deep into the product and start a bit of qualifying. And it is not a "40 calls per day. 
RevenueArchitect
Executive
0
EVP Revenue
Consider a bullseye approach. 

Each person has a personal Quota and the Team has a Team Quota. If you hit your personal Quota, THEN you are be eligible for earning part of the Team's "Pot of Gold" if the team hits quota. If you don't carry your own weight, you don't earn from the Team's Pot.

I call it bullseye because you can do this with a few layers of accountability: 1) Self 2) Pod 3) Team 4) Department.

Overall, I think team goals can be a great way to build a sense of collective mission and purpose. But there has to be a mechanism to ensure everyone on the team contributes to the team target.
Arch
Executive
0
Account Executive
Nobody likes group projects at school. Going to be worse when peoples paycheck are on the line.
Upper_Class_SaaS
Politicker
0
Account Executive
Hmm, so I can hit quota as a bottom performer? Not a good idea 
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