How do I set quotas that most of the team can actually hit?
Set them top down and bottom up, and treat the gap between the two as information rather than a negotiation. Top down is the revenue target divided across capacity. Bottom up is what each rep can realistically produce given their territory, pipeline and cycle. A healthy plan lands with roughly two thirds of reps between 80 and 100 percent attainment, a fifth clearly above, and a small tail below. If almost everyone misses, the quota is wrong, not the team, and across SaaS more than half of reps missed in recent quarters. If almost everyone clears it easily, you left money on the table and your accelerators are about to hurt.
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The practical method for combining top down targets with bottom up rep feedback, and the attainment bell curve to aim for: 60 to 70 percent around quota, 15 to 20 percent above, 10 to 15 percent short.
Written for Indian SaaS founders by the Everstage CEO, ex Freshworks. It gives the working numbers: quota period must be at least the sales cycle, quota to OTE around 5 to 6x, and two thirds of reps landing between 80 and 100 percent attainment.
Roughly 47,000 quota carrying reps across 246 companies, with average attainment at 42.7 percent. The number to put in front of a board that thinks your team is underperforming when the quota is what is broken.
The numbers you want when arguing about a plan: median commission around 11.5 percent of ACV, AE pay mix near 53:47, quota to OTE median 4.2x, and a median SaaS win rate of 19 percent. Use it to check whether your plan is normal.
Built around the same idea as the answer, that a quota most of the team misses is a planning failure you pay for in resignations. It runs the top down and bottom up numbers together and shows what to do when the two disagree.