Dear SaaStr: What Should Quota Be for a Commercial Sales Rep? Our Deal Size is $20k-$50k
For commercial AEs, quotas typically range from $600K to $800K annually, depending on your ACV and sales cycle. At least, once you have a repeatable process. Before that, you may need to set lower targets. Sales reps have to eat!
If your deal sizes are in the $20K-$50K ACV range, this quota is generally achievable with a solid pipeline and decent lead flow. Anything below $600K might be too low unless you’re in a very early-stage startup or still figuring out your sales motion, or have a bery efficient, low OTE SMB sales motion.
If you’re scaling, remember that not every AE will hit quota—plan for about 75% of your team to achieve it. This means you need to factor in some cushion when setting overall revenue targets. Also, if your SDR-to-AE ratio is low, it might impact how much pipeline your AEs can handle, which could affect their ability to hit quota.
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