Quota.
aka sales target, the number, attainment (when you hit it)
The number you have to hit. Everyone in sales knows theirs to the dollar.
What it actually means
A sales quota is the revenue or unit target a salesperson or team is expected to achieve in a set period, usually a quarter or a year. Pay is tied to it: commission typically accelerates above quota and bonuses depend on reaching it.
The language around it is its own dialect. Attainment is the percentage of quota you reached. OTE (on-target earnings) is what you earn if you hit exactly 100%. Accelerators pay more per dollar once you pass it; a cliff means you get nothing on the variable part if you fall below a threshold. “President’s Club” is the trip for the top performers.
Quotas are set from the company’s revenue plan divided across the team, adjusted for territory and tenure. Set too high and the team gives up by month two; set too low and the company overpays. The industry rule of thumb is that a well-set quota is hit by roughly 60 to 70% of the team.
Where you'll hear it
I’m at 84% with two days left. If the Henderson deal signs I’m over, if not I miss the accelerator and the club trip.
Translation: the whole quarter, and a chunk of pay, is riding on one signature. This is normal. It is also why sales people are the way they are at month end.
Also in job ads (“$150K OTE, 50/50 split”), in sales compensation plans, in board decks (“78% of reps at or above quota”), and in every conversation between sales and finance about whether the target was fair.
The pop-culture version
Twenty goals a season. Score twenty and the bonus lands. Score twenty-five and every goal above twenty pays extra: that is the accelerator. Score twelve and the bonus is gone, however well you played.
The striker thinks about that number every match. A dry spell in October changes the whole season. A hat-trick in May can save it. Fans only see the goals; the striker also sees the maths.
A quota is the striker’s target applied to revenue. The reasonable version is set from what good players actually score. The unreasonable version was set by someone who has never been on the pitch, and the team can tell.
Why it matters outside sales: quota attainment is one of the fastest ways to read a company’s health. If fewer than half the reps are hitting it, either the product is not selling or the plan was fiction.
Say it like you mean it
“I’m at 112% attainment for the quarter, with $60K in pipeline still closing.”
Attainment as a percentage, plus what is still in play.“I crushed my number.”
By how much? Attainment is a percentage, and the difference between 101% and 150% is the difference between relief and a promotion.If you are joining a sales team, ask what percentage of reps hit quota last year. Below 50% means the quota is a trap, not a target.
How quotas, OTE, accelerators and cliffs are designed, and what happens to behaviour when they are designed badly.
Decoded next
Decoded by the Kurums editorial team. Kurums Decoded translates the language of business for people who are new to it. Definitions are kept short on purpose; the serious version above goes deep. Nothing here is financial, legal or career advice.
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