Have you got a sales quota?

The thing that truly separates a corporate job from a job at the startup is the chance to have an outsized impact on solving a problem for customers. More often than not the distance between problem, potential solution and the ability to get that solution in front of customers to test out is way short for a startup than for a corporate.

But there is also another thing that separates the two. And it’s one which is directly linked to the above discussion about impact. It is the opportunity to see outsized returns on the investment of time and ressources you put into succeeding.

Having an incentive programme at a startup is pretty normal. It’s a part of the overall compensation and incentive plan in the company, which helps to ensure that the right talent can be attracted and that people stay motivated outside what their immediate role requires of them. But being part of an incentive programme is perhaps not enough. Perhaps we need to take it one step further.

How about we talk about assigning measurable sales targets or quotas outside of the sales team? What would happen if we started putting the same kind of targets on fx product peoples backs as we do with sales? Would that make a difference for the product, it’s ability to delight customers and – following on from that – generate sales? Perhaps it would.

It has always seemed quite odd to me that a lot of startups despite having a shared stated vision and mission seldom follow it up by assigning specific market facing targets but instead confine these to sales. I know that all departments have their own set of internal KPIs they’re working hard to achieve, but since you could easily argue that startup success is impossible without market facing goals, it makes little sense that they are not evenly distributed across the organisation.

Of course sales should always be accountable for turning leads into deals and revenue that can be booked. But sinde the core foundation of sales is the availability of an attractive product that delivers value above and beyond what customers pay for it, it makes perfect sense to assign the same kind of quotas to both product and R&D. After all, we all have a shared interest in becoming a success in the market place.

Naturally, the first couple of arguments against this line of thought is that people outside sales are not exactly motivated by doing sales (hence the reason they chose a different line of work) and they don’t always feel empowered to influence how and under which terms the product is being sold to customers. I have full sympathy for these arguments, but I think there are ways to work around it.

First of all, it should be ensured that whatever sales quota is being assigned outside sales is directly related to the overall vision and mission of the startup. It should not only be about assigning a dollar amount or a number of installs. It should be set up in a way that it encompasses the storytelling about what it is, you’re trying to achieve – big picture style. That way a quota essentially becomes a recurring reminder of what you’re doing, who you’re doing it for, and how you’re progressing towards achieving your ambition.

Second, it should also be ensured that there are boundaries for how sales sell the product. Especially if it’s done through reps. No opportunity for promising customers anything other than what’s already in the product. No opportunity to put extra workload on the teams back at the office for coming up with new features or a new take on a feature just to satisfy an painful customer. Sales has to show some respect here for the team members who have agreed to take on some objectives which don’t come natural to them.

After all it is a team effort, where everybody help each other out, and where there is total transparency about how things are going, and how successful we all are. Wasn’t that what was agreed in the first place, when the startup was founded and the first team members started to join? That you’re in this together in other to succeed with a higher purpose?

Of course it was. Or should be, at least. And viewed from that lens it isn’t awkward to put sales quotas on people outside the sales team. Quite the contrary; it makes total sense in order to ensure the alignment against vision and mission of everybody on the team.

(Photo by Norbert Braun on Unsplash)

Leave a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.