Are you considering a new sales opportunity or just evaluating your current situation? The most important factor by far is the percentage of reps currently hitting quota.
This metric will tell you almost everything about an opportunity, and not just from a money perspective. The answer to this question will also tell you a lot about the product, culture, advancement opportunity, and other important factors.
If you’re interviewing for a new opportunity, this information will give you a true idea of what you can expect to earn, and help to evaluate the company without asking about every aspect of the business. If a low percentage of reps are at or above quota, there might be some underlying issues that are totally out of your control. The specific issues might be challenging or impossible to uncover during the interview process, but they exist if the team isn’t performing. If a high percentage of reps are at or above quota, it’s very likely a solid overall opportunity. This metric will save you time, and help to step back and evaluate a company objectively – regardless of how many ping pong tables they have or how much you loved the team.
If a low percentage of your current team is currently hitting quota, there are probably better opportunities out there for you – especially if you are one of the few above plan.
So what constitutes a solid percentage of reps at quota?
When it comes to tech sales, 60% of salespeople achieved quota last year according to a recent Harvard Business Review survey. I believe that serves as a good cut-off point when considering a new opportunity. There are many factors, but anything below 60% probably requires some extra research. The actual breakdown by percentage is shown in the chart on the right.