Sales Quota
A sales quota is a revenue or activity target assigned to a salesperson or team for a defined period, such as a month, quarter, or year. It sets a clear expectation for output, anchors variable compensation, and rolls up to support the company's overall growth and revenue plan.
Quotas come in several forms: revenue quotas (bookings or closed-won value), activity quotas (calls, meetings, demos), and profit quotas. They are usually set by working backward from a company target, then dividing it across reps while accounting for territory, ramp time, and historical attainment. "Quota attainment" expresses actual results as a percentage of the assigned number.
A common pitfall is setting quotas too aggressively without enough pipeline coverage to support them, which erodes morale and inflates forecasting risk. Marketing operations teams often align lead-volume goals to quota so demand generation produces enough qualified opportunities for reps to realistically hit their numbers.
Last updated: 14 June 2026