Setting Realistic Sales Goals

Marketers - If you are given impossible-to-hit targets, it's your fault, not the business. You are the problem. As a marketing leader, you must work with the founder, sales leader, revops leader, CFO, and whoever is part of the planning process to build realistic scenarios. Where we go wrong is that we nod and thank the team for giving us a top-down bookings model based solely on headcount capacity. Oh, and, where we didn't have any input. If you accept the model without pushing back, you've just signed up for a plan that's completely (more than likely) disconnected from reality. Your job isn't just to execute the plan; it's to influence the GTM model and plan. Challenge the assumptions made by finance, the sales leader, and the CEO. Bring data and historical data to the table so the business can see targets that are ambitious but also achievable. Sure, they will still be crazy large. But it's important to ground the crazy in reality. When marketing is given an impossible goal, it fails, and the entire business does. If you just take what is handed to you, you are not leading and are doing your team a disservice. So, where do you start? 1) Review the initial top-down plan. Don't reject it. Review it. 2) Model a bottoms-up pipeline plan by source (inbound, bdr, ae, partners, channel, etc). If you don't have historic numbers, take the last quarter and make a guess. It's better to be tracking against a number than not. 3) Give three options (Better, Best, Bestestest) and have a conversation about what it's going to take to get there. That means it's on the entire GTM team to meet the goals. It also helps in breaking down silos between sales and marketing. Cheers!

I reach out to 16 new prospects every business day. Why 16? Because I track my numbers and I have a "revenue per hour" target. Here's how it breaks down: If I reach out to 80 ideal prospects a week (16/day), I'll convert 5% of those touches into a qualified opp with a VP+ contact. That's 4 new opps per week. This work takes me about 5-6 hours a week. On average, I'll close 1.6 of those 4 opps (40% close rate) and an average deal size of $39,000. That's $62,400 in expected revenue from about 6 hours of work (not counting the time spent on the deal cycles). That's $10,400 in revenue per hour for that work stream. Not everything I do has that much leverage, but I'm aiming for a blended average of $3,000 in revenue per hour at the time of this writing. If I'm successful in holding that rate 10 hours a day, 5 days a week, that's about $8 million a year in revenue (which happens to be one of my targets). Point of this post? First, if you know your desired revenue, then you can reverse engineer by knowing your numbers. The right inputs lead to the right outputs. Second, define your 'hurdle rate.' Based on where you are and where you want to be, what is your desired revenue per hour? Aim to spend as much of your time as you can at or above that hurdle rate. Aim to "delegate and elevate" things that are worth less than you desired revenue per hour. Raise your standards on revenue per hour, and that's how you can grow your income over time. Take one step up. Learn new skills. And repeat.

Why Your Sales Team Isn't Hitting Targets and HOW TO FIX IT 📊Today many businesses struggle with declining sales performance, and one of my clients - a mid-sized tech firm, faced this very issue. Despite having a talented team, they consistently missed their sales targets, leading to frustration and dwindling morale. They started sales coaching with me, and here's how we started and turned things around. Conducting Diagnosis: Understanding the Core Issues through a sales audit, and after an initial assessment, it became evident that several factors contributed to the poor performance. These are listed broadly as follows: 🚫Lack of Clear Goals: The sales team didn’t have well-defined, achievable targets. They were chasing numbers without a strategic plan. 🌀Inadequate Training: Despite their talent, the team lacked training in the latest sales techniques and tools. There was also an inefficient sales process at play. 🗯Poor Communication: There was a significant disconnect between the sales team and other departments, leading to missed opportunities and misunderstandings. 📌Low Motivation: Constant failure to meet targets had demoralized the team, impacting their productivity and drive. To address these issues, we implemented a comprehensive coaching and facilitation program focusing on well executed strategies: 🎯 Setting SMART Goals - to give the team clear direction and purpose. Fine tuning the sales process also contributed to efficiency. 💪Enhanced Training - on advanced sales techniques, product knowledge, and customer engagement strategies. 🧲Optimizing the Sales Process - by identify the bottlenecks and making necessary adjustments, we ensure that the process is customer-focused and aligns with their buying journey. 🎎Improving Communication - by establishing regular cross-departmental meetings and open communication channels to ensure everyone was on the same page. 👊Motivation and Incentives - by introducing a reward system to recognize and celebrate achievements, boosting morale and encouraging a healthy competitive spirit. Within three months, there was a complete transformation - the team had a high morale and camaraderie. Soon, they not only met but also exceeded their sales targets, achieving a 30% increase in sales. The clear goals, enhanced skills, and improved communication fostered a collaborative and motivated environment. The client’s sales performance skyrocketed, and the once-struggling team became a powerhouse of productivity and success. ✨✨ Need help identifying and fixing the issues in your sales team? Contact me for expert guidance and tailored solutions! 📌https://lnkd.in/dGGM5vCK #sonniasingh #sonniasinghleadershipcoach #salescoaching #salesoptimization #businessresults #SalesPerformance #SalesTargets #TeamMotivation #SalesTraining #SalesProcess #SalesLeadership

People are often shocked when I tell them that at Enjay, my sales team has ZERO financial incentives. No commissions. No "deal closing" bonuses. "Limesh, how does the team function? What drives them?" सच बात ये है, I used to think incentives were the only fuel. But over 20+ years, I realised something uncomfortable. 👉 When business owners rely solely on financial incentives to drive sales, they are being lazy. It is their way of saying: "I don't want to teach you.  I don't want to build a process.  I don't want to create sales material.  Just take this money and bring me results." It is a shortcut. And shortcuts kill "Dhandha" in the long run. 👉 Here is the reality of our office:  We hire freshers.  If I dangle a carrot in front of a fresher who doesn't know how to sell, it’s not motivation.  It’s cruelty.  They need training, not pressure. 👉 Also, heavy incentives often breed "Toxic High Performers"—people who hit targets but destroy the company culture. 👍 So, how do we hit our numbers without the greed factor? 1. We Plan Together. Marketing, Support, Dev, and Sales sit together. We decide the goal. It is not dictated from the top; it is agreed upon mutually by the team members. 2. We Predict the Roadblocks. We ask, "What will stop us from hitting this goal?" We identify the bottlenecks before they happen. 3. We Monitor Execution, Not Just Results. We don't wait for the 30th of the month to scream at people. We watch the daily inputs. 4. We Focus on Potential. Incentives reward performance. Systems nurture potential. 👍 Business is an Infinite Game.  We aren't running a sprint to hit a quarter-end number.  We are running a marathon to stay relevant for decades. 🌹 Stop trying to bribe your team to work.  Build a system that makes their success inevitable. Thoughts?

This is the most underrated problem I've seen when trying to build or expand partnership GTM: Leadership is initially fully behind a new partnership, excited about its potential, but that enthusiasm never makes its way down to the sales teams who are expected to execute. Without alignment, even the best partnership can stall before it has a chance to succeed. Why does this happen? Sales teams are often focused on their core products, and if a partnership doesn’t clearly benefit them or fit into their day-to-day operations, it becomes an afterthought. To turn things around, you need to make sure your partnership incentives, compensation, and training are in lockstep with the teams that will be selling your product. Here’s how to align incentives and drive results: 1. Ensure your incentives are compelling enough for frontline teams. It’s not enough to excite leadership—sales teams need a clear, tangible reason to sell your product. - Introduce a financial incentive or bonus structure that’s competitive with what reps earn on their core products. This could be a one-time bonus for the first sale, or an ongoing commission that rewards consistent effort. -Tie the incentive to their existing sales goals. If your product helps them hit their targets more easily, they’ll naturally prioritize it. 2. Structure partner compensation to motivate co-selling. If your partner compensation doesn’t align with their core goals, they won’t push your product. - Design a compensation plan that aligns with both the partner’s and your business objectives. For instance, if your partner’s core offering is hardware, incentivize bundling your software as part of the sale to create a win-win situation. - Offer performance-based incentives that reward partners for hitting key milestones—whether that’s a certain number of units sold, a specific revenue target, or even customer engagement metrics. Keep it simple and measurable. 3. Provide consistent training and engagement so your product isn’t just another checkbox. Sales teams won’t advocate for your product if they don’t fully understand its value or how to sell it. - Develop ongoing, bite-sized training sessions that fit into their schedules. Instead of overwhelming them with lengthy sessions, focus on 15-minute, high-impact trainings that teach them how to identify the right opportunities. -Pair training with real-time support. Join sales calls, offer one-pagers, and provide direct assistance during key customer engagements. When they feel supported, they’re more likely to feel confident pushing your product. This kind of alignment can make the difference between a stalled partnership and a thriving one. When sales teams are motivated, equipped, and incentivized to sell your product, the partnership stops being just another checkbox—it becomes a key driver of growth.

The number one reason top sales reps burn out isn't quota pressure. It's because they work incredibly hard at their job but completely neglect working hard on themselves. Here's what I discovered managing a $195M sales organization: The reps who lasted and thrived weren't the ones grinding 12-hour days in their CRM. They were the ones who built systematic approaches to their entire life. Sales is a game of habits, not just hustle. When you only focus on quota, you're building a house on sand. When you work on yourself systematically, everything improves. The top performers I mentored used what I call the four-part productivity system: #1 The PACER Calendar Method. They color-coded their calendars into five buckets: Personal (purple), Admin/Action (red), Creation (deep work), Enrichment (learning), and Recovery (yellow). This prevented them from being reactive to whatever hit their inbox. #2 12-Week Planning. Instead of annual goals, they broke everything into 12-week sprints with clear micro-steps. They knew exactly what to focus on each week to hit their biggest goals. #3 Daily Win System. Every night, they spent 5 minutes journaling three wins, decisions made, and lessons learned. This prevented the "what did I even accomplish?" spiral that kills motivation. #4 Weekly Reset Protocol. Every Friday, they did a 30-60 minute review of energy vs. time, cleared their workspace, and planned the next week intentionally. When they did these, they showed up with more energy, clearer thinking, and better resilience. Your prospects can feel the difference between someone operating from burnout versus someone operating from a place of systematic strength. Stop treating personal development like it's separate from sales performance. When you become a better version of yourself systematically, everyone benefits. Your family, your team, your prospects, your bank account. — Want to build an ELITE routine and mindset? Watch this: https://lnkd.in/gbpFye_t

Bad goal setting can cripple your business (I know from firsthand experience). Here's how to set goals that propel your business forward. Step 1: Analyze last year’s performance. You can’t set the right goals without the correct information. So, take some time to gather data from the previous year to find areas of strength and weakness. Look at your: Revenue streams — what are your most profitable areas? Your biggest cost centers? Sales & marketing — can you spot trends in customer acquisition or marketing ROI? Operations — where is your business bottlenecked? Where might you be overstaffed? Employee performance — look at productivity and churn. Which direction are things going? — Step 2: Brainstorm areas for improvement. Write down all the possible things you could work on. This is a great group activity for your leadership team or even the whole company (depending on your size). The data you’ve collected in step 1 should give you some idea of opportunity areas. One tip: don’t discount an idea just because it’s hard. Often the biggest impact things are hard to do. But you should be realistic about the effort required to get something done, and its chances of success. — Step 3: Set SMART goals Specific: Define clear and precise goals. Instead of saying "increase sales," say "increase sales by 12% in the next 6 months." Measurable: Ensure each goal has quantifiable metrics. E.g. "Reduce customer acquisition costs by 15% by the end of the year." Achievable: Set realistic goals based on your resources, budget and other constraints. E.g. if you have limited cash, avoid goals that would severely impact your monthly cash flow. Relevant: Align goals with your overall business objectives. Ensure they address the key areas for improvement identified earlier. Time-bound: Set deadlines for each goal. E.g. "launch a new service by Q3." — Step 4: Develop an Action Plan For each goal, create an action plan that outlines: Steps and Milestones: Break down each goal into smaller, manageable tasks. Set milestones to track progress. Resources: Identify the resources needed (time, money, personnel) and ensure they are available. Responsibilities: Assign tasks to specific employees. Ensure everyone understands their role and what is expected of them. Timeline: Establish a timeline with deadlines for each task and milestone. Doubling down on one point there: always assign tasks to a single person. They can still bring in other people to contribute, but it’s one person’s responsibility to get it across the finish line. — Step 5: Monitor and Adjust Goals are not static. Regularly check your progress, and adjust based on new insights or changing circumstances. Schedule monthly and/or quarterly reviews to keep everything on track. Having a simple KPI tracker is a good way to keep tabs on things. Make sure you’re regularly checking in, and ask people to flag any roadblocks or necessary adjustments as soon as they identify them.

Targeted revenue provides stretch goals for sales teams. But it's also vital for strategic planning. Here's how targeted revenue works and why it matters for FP&A. 1) Start with known and knowable sales This is the core of a sales forecast. Every company should maintain sales activity in a CRM. This may be broken down by customer, channel, product category, SKU, or a combination of all. Customers are known, the stage of the sales process is clear, and the amount of the deals are quantified. If a company is planning using driver-based forecasting, the sales outlook may omit this level of detail since the figures won't tie directly to customer accounts. 2) Layer in a stretch target. Many companies don't know which specific customers will generate revenue a year from now. Even if they do, there’s uncertainty in the amounts. But this shouldn’t stop setting the targets. Revenue targets can be based on forecasts within a sector or revenue channel where sales managers believe there's untapped opportunity, rather than with a specific customer. This brings about a focus on sales strategy, marketing, and other sales initiatives to make inroads in those channels. 3) Quantify the opportunities A vital, but challenging task, is for the sales team to put numbers to those opportunities: • Which channels are most promising? • What the potential deal size? This provides FP&A with a foundation for all-in revenue planning. 4) Cascade the impact Once a revenue target is set, it doesn't stop at the sales forecast. It drives the operating assumptions further down the P&L, for capex, and for financing: • Direct costs • Gross margins • Headcount planning • Compensation • Marketing • Facilities • Debt 5) Build in timing assumptions It's rare for revenue to be forecast in neat, even increments. FP&A needs to decide: • Smooth it evenly throughout the year • Front-load, if sales are aggressive • Back-load, if sales are conservative • Weight it, if seasonality is in play The choice of FP&A or a Controller is not just for revenue recognition. It impacts hiring plans, marketing, cash flow, and especially working capital needs. 6) Apply conservatism discounts Targeted revenue is aspirational and hardly guaranteed. Because of this, the financial model benefits from conservatism or scoring adjustments upon which scenarios can be run. A sale may be all-or-nothing, where it's either won or it's not. Weighted confidence levels can allow for scenario triggers so forecasts adjust dynamically. This helps FP&A and sales create what I call "tiers of planning" -- high, mid, and low confidence. Tiered planning sets optimistic and conservative sales thresholds. 7) Apply the plan With sales targets at various thresholds, FP&A can better plan for the rest of the FP&A and set performance milestones.

I asked 10 sales leaders last week to tell me where their reps spend most of their time. 9 out of 10 couldn't answer with data. If you don't know where time is going, you can't improve productivity. Most sales teams are running on gut feeling instead of insight. They're busy, but not productive. Here's the 3-step framework I've used to help teams instantly reclaim 10+ hours per week: 1. ASSESS Have every rep track one full day of activities in 30-minute blocks: ✔️ Prospecting ✔️ Internal meetings ✔️ Deal prep ✔️ Admin work ✔️ Actual selling time Most teams are shocked to find actual selling time is under 25%. 2. SCORE Once you have the data, score each activity on a scale of 1-10: ➡️ Revenue impact (Does this directly drive deals?) ➡️ Necessity (Can it be eliminated?) ➡️ Automation potential (Can tech handle this?) ➡️ Delegation option (Can someone else do this?) This creates your productivity heat map. 3. EXECUTE Now implement the clear winners: 👉 Automate follow-up sequences 👉 Create templates for repetitive communication 👉 Delegate admin work to support staff 👉 Eliminate low-value internal meetings 👉 Block calendar for high-impact activities The best teams are relentless about protecting selling time. I've seen teams implement this framework in a single afternoon and immediately reclaim 25% of their week. Your reps don't need more hours. They need better hours. Stop adding more to their plates. Start removing what doesn't drive revenue.

Another lesson from the history of sales that blows my mind? Yesterday afternoon, while you were probably doing something awesome, I was reading about how quotas were configured 100 years ago. (Literally. 🤓 I was reading Dartnell’s “Quota Plans of Notably Successful Concerns” from 1923.) The way I did it a few years ago? I know you may think I sniff a lot of old book glue, but here’s how I remember it: “Hey, (finance team). What do we need quotas to be set to next year?” Then I’d wait. We’d have a meeting. They’d show me a spreadsheet. Very simply put, it showed historical SPP (salesperson productivity by tenure), our revenue target for the next year, anticipated number of reps (with some turnover projections), and… …”Voilà! Quotas are 25% higher!” We’d “sell” it to the teams. Then, everyone would go cry themselves to sleep, and off we’d go. I’m embarrassed to think about it. There’s zero evidence that approach existed 100 years ago. “It is far better that the quota be RIGHT than it be SIMPLE.” - 1926’s American Management Association speech. 👉 They way they did it? They realized the incredible importance of accurate quota setting and invested accordingly. 🤯 “Quotas are set on territories and not on (individual salespeople).” - 1923, Dartnell Report 🤯 Read that again! Territory. Specific. Quotas. Their paper spreadsheets (not in Excel, Google Sheets, or even using a calculator), focused on sales to date in each territory and a DEEP analysis of the true TAM (total addressable market) for each territory. DEEP - meaning, they hired sales quota specialists to figure this out. They pulled every available data source. Once calculated, they sat down with the rep, shared all the data, and mutually aligned on the year's quota. They knew it was THAT important to get it right. Morale. Performance. Investment. Turnover. Leadership’s own job security. They did it with SO MUCH LESS data and technology. What history got right, and the proof we get it wrong lies before us here in 2023. Why can't we?