Why Raising Quotas Is Not A Growth Lever, It's A Growth Killer
Updated: May 6
Here's a hot debate.
Which lever to pull when it comes to driving maximum revenue potential from your sales team?
Choice 1: You can push quotas as high as possible in belief that the higher the targets are the harder they'll work.
Choice 2: You can push quotas as low as possible in belief that the positive mental advantage of beating a number actually makes people perform better.
Speaking from someone who's been carrying a quota for the past 9 years, I can tell you without question that #2 is for the win.
It's all about building confidence and security amongst your team. The confidence comes from beating numbers and the security comes from believing the numbers are continuously beatable. It's only when salespeople enter this mindset that their true potential is unleashed.
Unfortunately most companies don't understand this and they believe quotas are growth levers. What that actually leads to is reduced performance, decreased morale, and attrition through firing and quitting, all which have compounding negative effects.
It's not about pushing people as far as you can push them, it's about tapping into the power of positive psychology. There is no excel formula for this.