Quarterly Quota
Definition
Quarterly Quota is the revenue target assigned to a sales rep for a single quarter, typically one-fourth of their annual quota (adjusted for ramp if applicable).
Formula
For Fully Ramped Reps
Quarterly Quota = Annual Quota / 4
Example:
Annual Quota: $1.2M
Quarterly Quota: $1.2M / 4 = $300K
For Ramping Reps
Quarterly Quota = (Annual Quota / 4) × Ramp %
Example:
Rep at 50% ramp
Annual Quota: $1.2M
Quarterly Quota: ($1.2M / 4) × 50% = $150K
Why Quarterly Quotas Matter
1. Capacity Planning
Target Capacity (Quarterly) = Σ (Rep Quarterly Quotas)
Example Team:
- 10 fully ramped reps × $300K = $3.0M
- 3 ramping reps × $150K = $0.45M
- Total Quarterly Capacity: $3.45M
2. Revenue Forecasting
Quarterly Revenue Forecast = Team Quarterly Capacity × Expected Attainment %
Example:
Quarterly Capacity: $3.45M
Expected Attainment: 85%
Forecast: $3.45M × 85% = $2.93M
3. Gap Analysis
Gap to Target (Quarterly) = Target Capacity - Current Capacity
Example:
Target: $10M quarterly
Current: $7M quarterly
Gap: $3M (30% short)
Need: $3M / $300K = 10 more fully ramped reps
Standard Quota by Role
| Role | Typical Annual | Typical Quarterly |
|---|---|---|
| SDR | $400K-$600K pipeline | $100K-$150K |
| SMB AE | $800K-$1.0M | $200K-$250K |
| Mid-Market AE | $1.0M-$1.5M | $250K-$375K |
| Enterprise AE | $1.5M-$3.0M | $375K-$750K |
| Manager | $5M-$10M (team) | $1.25M-$2.5M |
Note: Varies widely by company, industry, product price
Ramp-Adjusted Quarterly Quotas
Month-by-Month Quota Assignment
Rep starts Month 1 of Q1:
| Month | Ramp % | Monthly Quota | Calculation |
|---|---|---|---|
| Month 1 | 0% | $0 | $100K × 0% |
| Month 2 | 25% | $25K | $100K × 25% |
| Month 3 | 50% | $50K | $100K × 50% |
| Q1 Total | 25% | $75K | vs $300K full |
Note: Q1 quota is reduced to reflect ramp period
Quota Capacity in Capacity Waterfalls
Example:
Beginning of Quarter Capacity: $10.0M
├─ 30 fully ramped reps × $300K = $9.0M
└─ 4 ramping reps × $150K (50% avg) = $0.6M
└─ 1 new hire × $25K (Month 2 ramp) = $0.025M
└─ Total: 35 people, $9.625M capacity
Common Pitfalls
1. Not Adjusting for Ramp
Mistake:
New hire in Month 1: Assign $300K quarterly quota
Result: Rep misses badly (was at 0% ramp)
Correct:
New hire in Month 1: Assign $75K quarterly quota (ramp-adjusted)
Result: Realistic expectations
2. Treating All Quarters Equal
Mistake:
Annual quota: $1.2M
Q1 quota: $300K (but rep started Month 2)
Result: Impossible target
Correct:
Q1 quota: $200K (2 months at partial ramp)
Q2-Q4 quota: $300K each (fully ramped)
3. Using Annual Quotas in Capacity Planning
Mistake:
"We have $50M of annual quota capacity"
For quarterly planning: $50M / 4 = $12.5M
Problem: Doesn't account for who's ramping THIS quarter
Correct:
Sum each rep's QUARTERLY quota (ramp-adjusted)
= Accurate quarterly capacity
Related Terms
- RRE - Capacity measurement unit
- Current Capacity - Sum of quarterly quotas
- Gap to Target - Quarterly capacity shortfall
- Capacity Planning - Using quotas in planning
References
- Standard in B2B sales
- Basis for capacity planning calculations
- Must be ramp-adjusted for accuracy