Top-down only
Dividing the target by headcount ignores whether the pipeline exists to support it.
Free sales template
Sales quota setting template
Quota setting is deciding the target each salesperson carries so that, together, the team covers the company number with a realistic buffer. This template runs the top-down and bottom-up methods side by side, applies a ramp schedule for new starters and sets SDR meeting quotas that feed the AE numbers.
What it is and when to use it
There are two ways to set quotas, and you need both. Top-down starts from the company target and divides it across the team. Bottom-up starts from what each rep can realistically produce, based on their pipeline, activity and conversion rates, and adds it up. When the two numbers are far apart, the plan has a problem that quotas alone cannot fix.
Ramp is where most quota plans go wrong. A rep who starts in month four does not deliver a full year's quota, and a new AE in their first quarter rarely delivers a full quarter's. The template applies a ramp percentage to each rep for each quarter, so capacity is counted honestly.
Most teams also set the sum of individual quotas a little above the company target, so the company still lands if a rep leaves or misses. The size of that buffer is a judgement call. Too small and one miss sinks the year; too big and quotas feel unfair and reps stop believing them.
Who uses it
Founders
Check whether the team you have, plus the hires you plan, can realistically carry the target.
Sales managers
Set fair individual quotas with ramp, explain them to each rep and link them to the commission plan.
The quota setting template
Every section and column, with what to write in each. Use the fill-in version below to type straight into it and copy, print or download the result.
1. Inputs
| Field | What to write |
|---|---|
| Company new business target | From the sales plan, for the year or quarter. |
| Over-assignment buffer | How far the sum of quotas should sit above the company target. Write the reason for the number you choose. |
| Average deal size | From closed won deals in the last 12 months. |
| Win rate | Closed won / (closed won + closed lost), last 12 months. |
| Meeting to opportunity rate | Opportunities created / first meetings held. Nousu's published figure for phone-sourced meetings is 50%. |
2. AE capacity with ramp
One row per AE, including planned hires. Ramp is the share of full quota expected in each quarter.
| AE | Start date | Full quarterly quota | Q1 ramp | Q2 ramp | Q3 ramp | Q4 ramp | Ramped annual quota |
|---|---|---|---|---|---|---|---|
| AE name or planned hire | Date | Dollar value | Percentage | Percentage | Percentage | Percentage | Full quota x sum of ramp percentages |
| AE name or planned hire | Date | Dollar value | Percentage | Percentage | Percentage | Percentage | Calculated |
| AE name or planned hire | Date | Dollar value | Percentage | Percentage | Percentage | Percentage | Calculated |
3. Top-down and bottom-up check
| Line | Value | Notes |
|---|---|---|
| Company target | Dollar value | From section 1 |
| Target plus buffer | Dollar value | Company target x (1 + buffer) |
| Sum of ramped AE quotas | Dollar value | From section 2 |
| Bottom-up estimate | Dollar value | Expected opportunities x win rate x average deal size |
| Gap | Dollar value | Target plus buffer minus the lower of the two capacity numbers |
4. SDR meeting quotas
Work back from the AE quotas to the meetings each SDR must deliver.
| Line | Value | Formula |
|---|---|---|
| Deals needed per year | Number | Sum of ramped AE quotas / average deal size |
| Opportunities needed | Number | Deals / win rate |
| Held meetings needed | Number | Opportunities / meeting to opportunity rate |
| Less meetings from inbound and referrals | Number | Last year's run rate |
| Held meetings from outbound | Number | Held meetings needed minus inbound and referrals |
| Quota per SDR per month | Number | Outbound held meetings / SDRs / months |
Fill it in online
Type into the template, or load the worked example and edit it. Nothing you enter is stored or sent anywhere: it stays in this browser tab until you copy, download or print it.
Empty fields copy as {{placeholders}} so you can see what is left to fill in.
Formulas
Quota maths in one place.
| Metric | Formula | Note |
|---|---|---|
| Top-down quota per AE | (Company target x (1 + buffer)) / ramped AE headcount | Ramped headcount counts a half-ramped AE as half. |
| Ramped annual quota | Full quarterly quota x sum of quarterly ramp percentages | A full year at 100% each quarter is 4 x the quarterly quota. |
| Bottom-up capacity | Expected opportunities x win rate x average deal size | From each AE's real pipeline and meeting flow. |
| SDR meeting quota | (Held meetings needed minus inbound) / SDRs / months | Most Nousu campaigns book about 8 qualified meetings a month once running, within a range of 6 to 20. |
Worked example
An Australian B2B company using outsourced SDRs. The company is described, not named, and the figures are illustrative.
Worked example: a Sydney construction software company
A Sydney company sells project management software to commercial builders and subcontractors. The FY27 new business target is $2.4 million in annual recurring revenue. There are two experienced AEs and one new AE starting in October, plus an outsourced SDR team.
Every figure is illustrative. The meeting to opportunity rate uses Nousu's published figure until the company has its own.
1. Inputs
- Company new business target
- $2,400,000 new annual recurring revenue in FY27
- Over-assignment buffer
- 10%, because the new AE's ramp is uncertain
- Average deal size
- $30,000
- Win rate
- 25%
- Meeting to opportunity rate
- 50%
2. AE capacity with ramp
| AE | Start date | Full quarterly quota | Q1 ramp | Q2 ramp | Q3 ramp | Q4 ramp | Ramped annual quota |
|---|---|---|---|---|---|---|---|
| AE one | In seat | $240,000 | 100% | 100% | 100% | 100% | $960,000 |
| AE two | In seat | $240,000 | 100% | 100% | 100% | 100% | $960,000 |
| AE three (new) | 1 October | $240,000 | 0% | 25% | 50% | 100% | $420,000 |
3. Top-down and bottom-up check
| Line | Value | Notes |
|---|---|---|
| Company target | $2,400,000 | FY27 budget |
| Target plus buffer | $2,640,000 | $2,400,000 x 1.1 |
| Sum of ramped AE quotas | $2,340,000 | Short of target plus buffer |
| Bottom-up estimate | $2,250,000 | 300 opportunities x 25% x $30,000 |
| Gap | $390,000 | $2,640,000 minus $2,250,000 |
4. SDR meeting quotas
| Line | Value | Formula |
|---|---|---|
| Deals needed per year | 78 | $2,340,000 / $30,000 |
| Opportunities needed | 312 | 78 / 25% |
| Held meetings needed | 624 | 312 / 50% |
| Less meetings from inbound and referrals | 240 | 20 per month last year |
| Held meetings from outbound | 384 | 624 minus 240 |
| Quota per SDR per month | 16 | 384 / 2 SDRs / 12 |
What to notice
- Both capacity numbers fell short of the target plus buffer. The founder brought the new AE's start forward to August and added a third outsourced SDR, rather than loading the gap onto the two experienced AEs.
- At 16 qualified meetings per SDR per month, the SDR quota sits inside the 6 to 20 range Nousu publishes for campaign output, but at the top of it. That was flagged as a risk in the sales plan.
How to use it, step by step
- Start from the company target. Take it from the sales plan and choose an over-assignment buffer with a stated reason.
- List every AE with a start date. Include planned hires and give each a ramp percentage for each quarter.
- Calculate ramped capacity. Full quota times the sum of ramp percentages, for each AE, then add them up.
- Build the bottom-up estimate. From expected opportunities, win rate and deal size. Compare with the top-down number.
- Close the gap honestly. If capacity is short, change hiring, start dates, SDR support or the target. Do not just raise individual quotas.
- Set SDR meeting quotas. Work back from AE quotas to held meetings, subtract inbound and referrals, and divide by SDRs and months.
- Link quotas to commission plans. Each rep's quota becomes the target in their commission plan.
Common mistakes
No ramp for new starters
Counting a new hire as a full quota from day one creates a gap you will not see until it is too late.
Fixing a gap by raising quotas
If capacity is short, more quota on the same people rarely produces more revenue. Change the inputs.
SDR quotas set in isolation
SDR meeting quotas should come from AE quotas, not from what last year's SDR managed.
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Want the meetings, not just the template?
Nousu Collective runs phone-first outbound for B2B companies selling into Australia, New Zealand and Singapore, with Australian callers in-house in Sydney. Our outsourced SDR service builds the list, runs the calling, email and LinkedIn cadence and books qualified meetings into your calendar. If you only need calls made, see cold calling or appointment setting.
In our data from 218,000+ dials into Australian businesses, Australian callers booked 1.3 meetings per 100 dials, against 0.3 for offshore teams. Pricing is starting at $7,000 a month.
FAQ
Quota setting template questions
Straight answers from the team that runs outbound for Australian B2B companies.
Still have questions?
Book a 30-minute callRun both methods. Top-down divides the company target, plus a buffer, across ramped headcount. Bottom-up adds up what each rep can produce from pipeline and conversion rates. Where they disagree, change hiring, support or the target.
Setting the sum of individual quotas above the company target, so the company still lands if a rep misses or leaves. The buffer is a judgement call; state the reason for the number you pick.
Give each new AE a share of full quota for each quarter, rising to 100%. The ramp should reflect your sales cycle: the longer the cycle, the longer the ramp.
Work back from AE quotas to the held meetings needed, subtract inbound and referral meetings, then divide by SDRs and months. Measure SDRs on qualified meetings held.
It depends on the market and the list. Most Nousu campaigns book about 8 qualified meetings a month once running, within a range of 6 to 20.
Not always. Territories differ in opportunity. Balance quotas against the opportunity in each territory and each rep's ramp.
Need a team to run the plan?
Book a 30-minute call. We will map your market and buyers and show you what a phone-first campaign would book.
Starting at $7,000 a month. Exact fee quoted after a 30-minute call.