How it works
Most quotas count revenue. Others count units or deals sold, gross margin, or activity such as calls and meetings, which is common for SDRs and BDRs. Some plans mix two, such as revenue plus new accounts.
Quotas are set top down, bottom up or both. Top down, the company's target is split across teams and reps. Bottom up, the manager works out what one rep can sell from their territory, deal size and win rate. New reps often get a lower quota for their first months while they ramp.
Worked example, with made-up figures: your annual quota is $600,000 and your average deal is $10,000, so you need 60 deals. Over 48 working weeks that's 1.25 deals a week. If you win 1 in 4 opportunities, you need 5 new opportunities a week. That's the number to check on Friday.
Quota and target aren't always the same thing. A target can be a stretch the team aims at. Quota is the number your pay plan measures, and it's what quota attainment is measured against.
Where it shows up in your week
A yearly quota only turns into action when it becomes a weekly count. The activity calculator works back from your sales or deals goal to the calls, conversations and meetings each week needs, from your own conversion rates. The quota calculator shows your pace, and what each week left needs.