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This question is about sales representative skills.
What is a sales quota?
A sales quota is a set number of sales a company or individual must complete in a specific period of time.
Companies often set sales quotas to give their employees specific marks to hit in terms of the number of sales they make on a monthly, quarterly, or yearly basis.
Sales quotas might be given to a whole sales team, department, or one specific employee, depending on the organization and industry.
There are several different types of sales quotas that might be employed, including:
Profit or revenue quotas. This type of sales quota is used to measure a predetermined objective for total profit.
Activity quotas. Activity quotas are used to find out the amount of sales activity a sales representative engages in within a specific timeframe.
Volume quotas. This requires salespeople to sell a specific amount of products within a certain period.
Cost-based quotas. This type of quota focuses on the resources used in sales, such as money or time it takes to make a sale rather than the overall revenue.
Forecast quotas. Forecast quotas use historical data related to the sales performance of a salesperson, team, or department, to set sales goals that either meet or exceed previous expectations.
Combination quotas. These types of quotas consist of any variety of quotas previously mentioned and are tailored to a company's, or sales department's, specific needs.
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