What is the sales quota? Following the complete and kind of understanding

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What is the sales quota Following the complete and kind of understanding

What is the sales quota? Following the complete and kind of understanding

What is the sales quota Following the complete and kind of understanding

Sales work often includes quota to ensure that you produce certain sales volumes or income. There are several types of quota you might use to ensure that sales in the business run well. It is important to know the most common type of quota so you know how you can achieve it.

In this article, we will discuss the sales quota and provide some examples that you might encounter in your business career and you can apply later.

What is the sales quota?

Quota is a number of sales or other actions that you must fulfill in a certain period. For example, a carpenter may need to make 12 tables in one month to meet their quota.

If you as a business owner or a manager, you can set a sales quota for you as an individual or as part of the team. Some sales quota is based on the set area. You may have a daily, weekly or quarterly quota, or sometimes a combination of periods.

Common sales quota type

There are various sales quota that you might use by your company. Each has its own measurement method, but mostly focuses on activities, profits, volumes, and costs.

Your company can use only one type of quota or a combination of several quota below:

1. Advantage income or quota

The quota of income is a public sales quota used to measure previously determined objectives for total income.

Example: A furniture company has set a quota of 2,000,000,000 revenue for the month for each sales representative. You have a list of new home buyers who might need some furniture. The average sales of 200,000,000 per customer, so he needs to sell furniture to around 10 customers to meet the monthly quota.

Your friends work in furniture showrooms. The main customer base is usually interested in buying only one furniture. The average sales are 50,000,000 per customer, which means he must close the sale with at least 40 customers to meet the quota.

2. Activities Quota

Activity quota determines the number of sales activities carried out by salespeople in a period. It includes activities that lead to sales, such as making a number of phone calls, meet with a number of clients or send so many letters.

Example: A roof company has instructed its sales force to carry out 20 telephone calls every day to potential customers.

A company calls people who have filled out lottery forms at a local trade show. This method produces one sale for every 10 calls.

Company B has a list of names and random numbers that he must contact. This technique produces approximately one sale for every 50 calls he does.

As long as companies A and B do at least 20 calls a day, they have reached the activity quota regardless of how many sales they do.

3. Volume quota

The volume quota requires you to sell a number of products every period. Volume quota focuses on the number of products, not the number of sales value.

Example: A car dealer has instructed its sales force to sell 10 cars every month.

Sales A works in the Department of Used Cars. He has sold 10 cars, each with prices ranging from 20,000,000 to 100,000,000

Sales B works in a new car showroom and has closed sales with 10 customers. New Car Prices range from 150,000,000 to 400,000,000

Even though Sales B produces more income, he and Sales B fulfills their volume quota by selling 10 cars.

4. Cost-based quota

Cost-based quota focuses on resources (such as time or money) needed to sell rather than income.

Example: An electronic store has instructed its salespeople to spend only 20 minutes for a sale.

Employees work in the laptop department. He must explain the features and benefits of several laptops to customers in 20 minutes to make sales so he can help the next customer.

4. Cost-Based Quota

Cost-Based Quota Focuses On Resources (Such As Time or Money) Needed to Sell Rather Than Income.

Example: An Electronic Store Has Instructed Its Salespeople To Spend Only 20 minutes for a sale.

Employees Work In The Laptop Department. HE MUST Explain The Features and Benefits of Several Laptops to Customers in 20 minutes to make sales so he can help the next customer.

6. Combination quota

The combination quota combines various quota based on company needs.

Example: The recreational vehicle dealer has established a combination of quotas that must be fulfilled by the salespeople.

Sales A need to call 15 people every day that have sent information to the Dealer website. In addition, he must sell four RVs every week. He is also expected to produce 150,000,000 revenue from RV sales and camping accessories in May.

Tips for Reaching Sales Quota

You can follow these tips to make sure you meet your sales goals:

  • Think of the long term. Even though you can choose any sales quota every month, try planning an annual quota so you can look for prospects for the coming months while also meeting the current month quota.
  • Build a pipeline. Your “path” is a stable flow of sales opportunities, and builds it includes activities such as networking, looking for prospective customers, and follow up on prospects. Pipeline helps you estimate sales and make long-term goals.
  • Create urgency based on your product. Clients will be more likely to close the deal or buy a product if they feel they need it immediately or may lose an agreement or can. Try to explain to your customers how your service can benefit them so they act instead of waiting.
  • Manage your time. Make a schedule that uses every day as well as possible. If you need to meet clients for sales meetings, consider who you can find in the area to maximize your time outside the office. Block a certain amount of time every day or week to do Cold Calling.
  • Exceed your quota. You as a business owner, may have an unlimited commission plan or can offer a bonus when you exceed expectations. Exceeding the quota also shows your motivation and commitment to your employees or power station.


That is the complete discussion of the sales quota that you can apply as a sales target for business. Make sure you also consider the ability of salespeople and marketing tools that businesses use for the sales of sales.

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