A sales quota can be thought of as a target amount of sales that a sales person is expected to achieve within a predetermined amount of time. There are several distinct categories of sales quotas, including the following:
A quota for the volume of sales typically is determined for a given year. These quotas can be set in areas such as branch offices, product lines, product ranges, and so on.
As an illustration, it is required of sales representative Arthur every month to sell 100 purifiers.
The sales representative is better able to strike a balance between high and low profit yielding products thanks to the use of profit quotas.
Expense quotas are used by organisations, which set various levels of quatas for the organization's expenses at which it must succeed in order to meet the requirements. It's possible that this is because of the costs associated with selling the product. The selling department will receive a fixed budget of $200,000 from the company.
According to the Activity quota, the sales representative or sales people are responsible for completing a set number of activities within a predetermined amount of time or within a particular time frame. For example, Mr. Sam has been tasked with making either 20 demonstrations or 30 calls during the course of each month.
If a salesperson is expected to meet more than one quota, it is possible to speak of that person as having a combination quota. For instance, Saima is required to conduct ten product demonstrations and thirty sales calls each month, and she must generate close to one thousand dollars' worth of business after accounting for the cost of purifiers and selling expenses.