White Paper – Quota Distribution And How It Affects Sales Compensation Programs



Sales compensation schemes are fundamental in sales and a great tool in the hands of the sales management. Sales management mistakenly believes that the scheme’s design is an easy job that can be done within a one hour.

The design of a scheme includes various steps, all of them being important to consider. Managing a territory has no real value unless one understands how much revenues and business it can break, what is its potential.

This white paper is analysing the notion of how to set the right targets for the sales force and which are the key factors to consider in the process.

When we design a new sales compensation scheme at C4S, we always keep an eye in the quota distribution and we make sure stakeholders are well educated how to set this correctly.




Designing a sales motivation scheme does not stop in just deciding on the terms and conditions of the system. The process of setting and distributing quotas is equally important.


The white paper covers the following ideas:

Why Targets Are The Most Important Part Of A Sales Incentives Plan

The Consequences Of Incorrectly Set Targets

Not All Targets Are Measured In Individual Sales

Indicators That A Company’s Issues Are Related To Target Setting

Three Ways To Set Targets

Top to Bottom Approach

The Bottom Up Approach

The Combined Approach

The Main Factors To Consider When Setting Targets

The Role Of Data In Target Setting

Three Key Characteristics Of Quotas

A Note On Whether To Tie Targets To A Person’s Performance Or A Region

When To Adjust Quotas