Home > Jobs > Could This Be True?

Could This Be True?

One of my colleagues recently told me that she heard that our company is working with a group of consultants whose goal is to get the majority of sales reps performing between 75 and 90%.

When I heard this it seemed too sinister to believe but based on a restructuring that recently happened it seems to make sense.

About six months ago my company did a couple of things. First, they restructured our territories adding more accounts but also taking away our primary source for new sales. We were told this was done to "better serve the needs of customers".

Secondly, they raised quotas by around 30% across the board, December is our highest quota month and my number is literally 70% higher than it was last year.

Since they made this change sales performance has gone down dramatically, I would say most reps are performing somewhere around 70-80%, which kind of jives with what I was told.

I hate to say it but I think my colleague might be on to something because my peformance at 70% would be around 130% of where I would have been last year.

Anyone else seen this type of thing in other sales organizations? - by kenpo1980
70-90% of what quota, potential, or something else? What are the current levels and how do those numbers stack up to industry standards? What actions are being taken to reach the target levels? - by Jeff Blackwell
Thanks for the response Jeff!

What I was told is that the behind the scenes goal is to have the majority of reps hitting between 75-90% of set quotas because this evidently increases the corporate bottom line over all.

Normally a company wouldn't want reps peforming at this level but if you bump quota by 40% when the threshold required to get any kind of bonus is 95% you can see how this would have a pretty significant impact.

In my organization the difference between a rep performing at 90% of quota and 100% of quota can be $70k per year and with top performers it can be well over $150k.

Right now less than half of the reps are achieving there quotas and before it was about 75% - by kenpo1980
It looks like you are asking if some companies bump their sales quotas as a way to both spur production and cut costs. If that is the question then "Yes" I have seen that type of thing before. - by Jeff Blackwell
Weekly Updates!
Questions and Answers about Selling
Subscribe to our mailing list to get threads and posts sent to your email address weekly - Free of Charge.