Quota is the sales goal or goal that a salesperson or team must achieve in a given period of time. Quota forms the basis for calculating commission, bonus and attainment.
An account executive has an annual quota of DKK 4,000,000 in turnover. With a commission rate of 10%, upon full target completion, it will provide:
4,000,000 × 0.10 = $400,000 in commission.
Quota ensures that the salary model is linked directly to the company's strategic objectives and is therefore used as a management tool in most sales organizations.