Community / Sales Glossary
Compensation

Quota

Quota is the revenue target assigned to a sales rep, manager, or team for a defined period — typically a quarter or fiscal year. It is the standard against which performance is measured, commissions are calculated, and ramp progress is tracked. Quota should be set at a level that is ambitious but achievable: industry convention is that 50–65% of reps should hit or exceed quota in a healthy plan. Quotas that are consistently missed by the majority of the team signal a calibration problem, not a performance problem.

Industry Benchmark
AE quotas are typically set at 4–6x OTE. For a $150K OTE rep, that implies a $600K–$900K annual quota. Quota-to-OTE ratios above 8x are generally unsustainable.
Related Tools
Quota SettingQuota Attainment Curve
Related Terms
OTE (On-Target Earnings)Quota AttainmentAcceleratorPipeline Coverage Ratio
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