New to software sales. Trying to understand how common it is for sales leadership to accept quotas that are completely unrealistic to achieve? I’m talking the total addressable market isn’t even as large as these quotas. Also how common is it for sales teams to hit <80% of quota year over year without any consequences/changes? Thanks in advance.

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Welcome to software sales, bro (been doing it for over 30 years). It used to be that 80% of the team hit/exceeded their number. It's now down around 20%. See Brian Burns on LinkedIn for more detail as to why this has happened.

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Gartner has some posted stats on this - about 30% of reps hit quota.

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Thank you, I will look for this.

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These are all very accurate. Plan your future accordingly. I don’t really know anyone in my age group that still sells exclusively. It may be a component of the job but most eventually move into CSM, Product/Program Management, other, or get out all together. I worked with a guy who became a Dr because it was easier than hitting quota. (True Story)

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Only a third of sales reps hit. Most quotas as designed for a rep to achieve 85% and it’s up to the rep to make up the difference

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Very common to have unattainable quotas. For the public companies I’ve worked at, there are typically top-down drivers (ie: need to show revenue growth of XY% or need to hit a specific EPS number). The companies then base your quota on hitting those targets, regardless of your existing pipeline, leads, average deal size, or even market size.

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Very common. You would be surprised, honestly.

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I try to look at not just in my current territory but in future territories. Newbies generally get bad territories. You probably don’t have a shot at hitting your quota. If you hustle and squeeze as much juice out of your lemon, then ask for more. But you have to ask for more without complaining. Good sales leaders have an eye for potential top performers and they want those individuals in good territories. That’s the game. If you’re reaching the glass ceiling in your territory and don’t see better opportunity for the next year, then use your experience to negotiate a better compensation package at your next company.

smart

We back into quota based EPS target then apportion it based on prior year pipeline…very common for quota to be unachievable, esp here.

On Target Earnings

Quotas are not meant to be achieved by 100% of the sales team. Sales leadership often times don’t have a say in their quotas they are “GIVEN” to them by none sales leadership. Quotas are what the company needs not what is actually obtainable.

Organization 1: quotas+goals were set realistically and as the month/quarter drew near to its close, everyone stepped on the gas to achieve individual goals and help the team pass theirs. Each month those goals were raised a tiny bit. Basically progressive overloading to hit what would've seemed impossible at start of year

Org2: start of year goals are much higher than team is ready to hit. Each month they are nowhere within reach. No added motivation to hit them, no big push at end of month/quarter etc.

I worked at both of these and i think the issue comes from the investor goals. VCs setting goals that then trickles down and add a pressure instead of progress

I believe unrealistic goals is the case in sales over all over the last decade. However if you find the entire team is consistently under quota, I'd look for different opportunities because it's never a good sign.

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Seems accurate 😊

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