The second is what level of sales are actually possible both given your geographic and market area, and your system limits. Quotas function as both a goal and a calibration tool. If no one is beating the quota, then maybe it is a little high. You need to experiment with quotas to see what is right for you. As noted, salespeople are competitive creatures, and contests motivate them.
Some companies have a 'commission accelerator' or bonuses for exceeding quotas.
Many companies have a 'President's Club', which is usually a company-sponsored trip for salespeople who beat their yearly quota. We'll give you a chance to let all this sink in. Next week we'll be back to cover the delicate art of Setting Commission Rates. Please join us then. Incorporated All Rights Reserved.