Targets, Annual Quota, and Carried Quota

Here’s an example for a sales rep that’s hired in Month 4 and has a ramp profile in which they receive 25% of quota in their first month, 50% of quota in their second month, and 100% of quota for each remaining month.

• Seasonality represents the emphasis placed on a particular product during a certain time of year. For example, seasonality can increase in the last fiscal quarter.
• Target represents the target value for the month, depending on the segment and seasonality curve. For example, maybe your segment has an annual target of 500 and the first month’s split of the seasonality curve is 5%. The target for that month is 5% of the 500 segment target, or 25.
• Annual Quota represents the target value that a fully ramped sales rep is expected to achieve from the beginning of the year. To achieve the total annual quota, specify an allotment each month, then sum all months together, plus a buffer percentage that you define in Quota Builder. In this example, the buffer percentage is 15%, so to calculate the annual quota allotment for each month, the formula is Target + 15% of Target, or Target × 115%. In the first month, the target of 25 × 115% is 19.
• Ramp specifies the percentage of quota received over time as the rep gains experience, based on the rep’s ramp profile in the plan settings. In this example, the rep is hired in Month 4. They receive 0% for the first three months, and then ramp from Month 3 to 6 until they start receiving 100% of quota.
• Carried Quota represents the quota that the sales rep carries when adjusted for ramp and seasonality: Annual Quota × Ramp. This number represents the quota that you think is achievable given the rep’s experience and their share of the overall financial target. In this example, when the rep begins in Month 4, their ramp curve is 25% of an annual quota allotment of 29, or about 7.