Definition of a Quota Carrying Sales Rep
A quota carrying sales rep is any sales representative that’s expected to reach a certain sales quota during a predetermined time period. It could be that they need to achieve a specific total value of sales or that they need to convert a certain number of leads, and they’re usually expected to meet this quota every month or every quarter.
For example, a sales rep might have a quota of converting 20 prospects per month or generating $200,000 in sales every quarter.
Quota carrying sales reps usually have their figures monitored on a weekly basis with a review four times a year to ensure that they’re achieving the quotas that they’ve been set. Employers typically use these quotas because it’s a way of ensuring that their sales team is measured based upon their performance.
Using quota carrying sales reps comes with both advantages and disadvantages, which is why not every sales team follows this model. However, it’s arguably the best way to ensure that your salespeople are evaluated on their financial contribution to your company, as opposed to any other metric.
What are the downsides of having quota carrying sales reps?
The biggest downside of having quota carrying sales reps is that they tend to over-focus on their sales goals, thinking short-term instead of long-term. They’ll often be pushy and aggressive, trying to force prospects to convert into paying customers whether they’re ready to become one or not. It can also put unnecessary pressure on your sales team and lead to a higher staff turnover.
What happens if a quota carrying sales rep doesn’t hit their target?
It’s relatively rare for a company to immediately dismiss a sales rep for missing their target, and when this does happen, it’s usually because there are other factors at play. Instead, most companies will work with their reps to provide training and development or to rethink the goals that they’re working towards. If a rep consistently misses their targets, they’re much more likely to be at risk of termination.
How often are the goals of quota carrying sales reps changed?
Generally, the goals of the sales reps will stay the same from one period to another, although their regular reviews are designed to ensure that employers have the chance to revise them as needed. Ideally, the company and the rep will work together to set a goal that’s realistic, but there have also been cases of companies giving their reps goals that are unachievable, which often leads to burnout and resignations.