Quota-based sales incentive compensation plans are growing in popularity. In fact, they’re displacing commission-based plans across industries, including high-tech and medical products.
Quota-based plans tend to better account for individual salesperson opportunities and are therefore considered to be fairer than pure commission plans. But their effectiveness depends almost entirely on the accuracy of the individual salesperson’s quota.
http://www.trainingmag.com/msg/content_display/management/e3i7ad1fc69c5345252a9de8b9c081fa548
Companies often put off updating their quota-setting processes because it is challenging to do it right. Today, however, it is a necessary undertaking.Companies that improve their processes and strive to provide their field with fair, accurate quotas will see enormous benefits—from improved sales force morale to lower incentive costs and higher overall sales.
