<ul><li>Setting sales rep quotas in a SaaS business depends on the stage of growth and ARR.</li><li>Early Stage (Sub-$1M ARR): Quotas should be simple, achievable, and possibly overpaid to keep reps engaged.</li><li>Early Growth ($1M–$10M ARR): Quotas should align with sales model, set at 3x to 5x the rep's OTE, and be realistic but slightly ambitious.</li><li>Scaling ($10M–$50M ARR): Quotas should be tied to historical performance, benchmarks, and can include monthly or quarterly targets for consistency.</li><li>Late Stage ($50M+ ARR): Quotas linked to metrics like pipeline coverage, opportunity-to-close rates, and could focus on revenue, customer acquisition, or retention.</li></ul>

Dear SaaStr: What is The Best Way to Set Sales Rep Quotas at Each Stage of a B2B Business?

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