I'll Say It Again, Quotas Are Not Growth Levers
I received a lot of questions on IG around why their leadership raised quotas after they crushed them in 2019.
Quotas are not growth levers.
Your team exceeded quota last year and you want to do even better this year so logic tells you to raise quotas and you’ll drive additional performance.
Here’s what actually happens:
Your reps get angry. They feel their hard work in beating quota is not recognized and instead it’s assumed that it was easy for them to beat quota. They get disengaged, morale goes down, and any drive and motivation they once had to crush quota is now retracted by the notion that beating quota means quota will increase. Top performers start exploring options to leave. You set yourself up for a bad year.
The opposite of what you wanted.
If revenue is 4-7x the OTE, you’re in the right ballpark and quotas don’t need to change (even if you’re beating them).
Focus on real growth levers like generating more pipeline, moving up market or into new markets, improving product, and launching new features that you can charge more for.
You can’t measure the benefits of great morale and a team that’s happy because they’re winning... until you see the impact of losing those incredible aspects of your sales culture.
Crushed quota? Great, go crush it again.