Article · 10 min read
Getting the Quotas Right for Your SaaS Sales Teams
Siva Rajamani · SaaSBoomi Free Intermediate India
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.
- Target a 5:1 quota to OTE ratio; below 4:1 something is wrong (600K quota against 120K OTE).
- Ramp time equals sales cycle length plus training time, assuming the rep gets enough MQLs.
- Never set a quota period shorter than the sales cycle, so no monthly quotas on a 90 day cycle.
- About two thirds of reps should land in the 80 to 100 percent attainment band, otherwise the quota is wrong.
- Only worth doing past 1M ARR with product-market fit, and needs 12 months of funnel history.