Sales Quota

A sales quota is the measurable target - a revenue figure, number of deals closed, or sales activities completed - that a salesperson or team must achieve within a set time period. Most businesses work to monthly or quarterly quotas, though longer sales cycles sometimes call for annual targets. At the individual level, a quota converts a company-wide revenue goal into clear personal accountability: each rep knows exactly what number they are responsible for delivering.

Types of Sales Quota

Five types are used in practice, and each serves a different objective.

A revenue quota sets a minimum pound or dollar value of sales to close in the period. This is the most common type and suits businesses selling projects or orders of consistent value - commercial AV integrators, contract furniture dealers, and commercial solar installers often start here.

A profit quota focuses on gross profit generated rather than top-line revenue. Where a revenue quota can reward high-volume, low-margin selling, a profit quota keeps the focus on deal quality. Promotional merchandise distributors, where product margins vary widely across decoration methods and order sizes, often find this more useful.

A volume quota targets the number of units or deals closed regardless of value. It suits businesses building new customer numbers or moving specific product lines.

An activity quota tracks the lead-generating actions that precede a sale - quotes sent, site visits booked, or follow-up calls completed. It is most useful when onboarding new salespeople who need structure before they have a track record to measure.

A combination quota blends two or more of the above. For example, a revenue floor plus a minimum number of new customer accounts gives a more complete picture of performance, though it requires clear tracking to remain fair.

Quota Attainment: Measuring Progress

Quota attainment is the percentage of the target a rep or team actually achieves. The calculation is straightforward:

Attainment (%) = [Actual sales / Quota] x 100

A rep who closes £72,000 against a £90,000 quarterly quota has 80% attainment. Most sales managers aim for 70-80% of the team to hit or exceed quota in a given period - broad enough to be realistic, ambitious enough to stretch performance.

Setting a Sales Quota for a Project-Based Business

For businesses where orders are project-sized rather than transactional - construction contractors, AV integrators, office furniture dealers - historical closed revenue is usually the most reliable starting point. Take the previous 12 months of individual sales, adjust for any known changes in territory or pipeline, and add a realistic stretch of 10-15%.

Quota periods should match the length of your sales cycle. A distributor closing merchandise orders in days can work to a monthly quota with confidence. A business running four-to-six-month sales cycles on large commercial projects generally needs quarterly targets to give reps enough runway.

Tracking quota progress in real time matters as much as setting the number. Zigaflow's lead management features give sales teams a live view of active opportunities against period targets, without relying on a spreadsheet that only gets updated before a meeting.