
To set quotas use a top down approach (what have other companies achieved with the same types of sales people) and a bottoms up (how many deals can a salesperson be expected to close in a typical month and multiply that by the average contract value.) We’ve found that sales quotas should be at least 5x the OTE (On Target Earnings), which includes base salary + bonus. Ideally quotas are 6–8X OTE to be considered high performing. Once you have quotas, you can figure out what the rough commission is to meet the desired OTE.