Over the coming weeks, we will be highlighting key findings from the 2009 Inside Sales Metrics & Compensation Report. The report is based on surveys of 125 North American technology companies.

Our first topic focuses on a common question:
"What percentage of Inside Sales Reps are achieving quota?"

Based on the report, an average 64% of Reps are at quota.
(see chart below)

• 16% of respondents reported less than 50% of their Reps at quota
• 35% had between 50-69% of Reps at quota
• 38% had 70-89% of Reps were making quota
• Only 11% of respondents had more than 90% of their Reps hitting quota

But on average, 67% of Reps are making quota. That is decline of 4.5% over the last 24 months. 

Before you say to yourself: "Well that's okay"... put it in perspective.  If you took a test and received a grade of 67%, how would you feel about yourself?

One way to potentially address this issue is to rethink how we build quotas. Below are some things to consider.

Quotas should not be vanilla.  All territories are not created equally!  Taking the time to assign quotas based on historical data or market analysis will increase your likelihood of success.

• Determine how many inbound inquiries each territory receives. Multiply that number by your inquiry to win conversion rate and that becomes part of your quota equation.
  
  
• Define your Ideal Customer Profile and determine how many accounts fit that profile in each territory. Example: if you are targeting technology companies, those reps with territories in the Northeast and Southern California have very rich territories while those in the Southeast have less rich territories.
  
  
• If customer up sells is part of your number you should also determine how many customers are in each territory.

You get where I am going. 

It is illogical to just take a number and divide it by the number of Reps you have. Take a moment, do some analysis and you will see the number of Reps achieving quota increase.

Participate in the conversation by answering these questions:

1. What percentage of your reps achieve quota?
2. What percentage do you assume will achieve quota?
3. What formulas do you use to set quota?

Would love to hear from individual Reps as well as Managers about what they think of this process so feel free to chime in!