Setting realistic sales quotas are important to the success of your sales compensation plan.  But, how do you determine the right quota amount ?

Ask yourself the following questions to formulate quotas that work.  

1) What was the amount of your new account sales in the past 12 months?

2) How many properly qualified opportunities can a salesperson manage at one time?

3) What is the length of the average sales cycle?

4) What is the average close ratio?

5) How much is the average sales transaction?

Once a realistic quota is determined, set stretch goals and a commission plan that rewards your sales team for going the extra mile.