Targets shape behaviour
Sales targets are not just goals. They are signals about what you expect and what is possible. Set them too low and agents coast. Set them too high and they give up before trying. The right targets stretch agents while remaining credible.
Start with data, not ambition
Base targets on actual performance data, not wishful thinking. If your existing agents or internal team sell $30,000 per month on average, setting a target of $100,000 for new agents is not ambitious. It is unrealistic.
Look at average deal size, typical close rates, realistic activity levels, and historical ramp up times for new agents. Use these to build targets from the bottom up rather than picking a top line number and working backward.
Ramp period targets
New agents need time to learn your product, build pipeline, and close their first deals. Set reduced targets for the first three months that reflect this ramp up period.
A reasonable progression might look like month one at 30% of full target, month two at 60%, and month three at 80%. Full target from month four onward. This gives agents time to build momentum without feeling they are failing from day one.
Activity vs outcome targets
For new agents, activity targets are more useful than revenue targets. They cannot control whether prospects buy, but they can control how many conversations they start.
Set weekly activity targets for outreach calls, discovery meetings, and proposals sent. As agents gain experience and you have enough data to predict conversion rates, shift the emphasis toward revenue targets.
Individual vs team targets
If you have multiple agents, consider both. Individual targets drive personal accountability. Team targets create collaboration and shared purpose.
A team target with a bonus for the whole group when it is achieved can be powerful. It encourages agents to help each other rather than compete destructively.
Adjust targets based on territory
Not all territories are equal. An agent covering Sydney CBD will have different potential than one covering regional Tasmania. Adjust targets to reflect the opportunity available in each territory.
Unequal targets feel unfair only when the reasoning is not explained. Be transparent about why different agents have different targets and how you assessed the potential of each territory.
Review and revise quarterly
Markets change. Products evolve. Agents improve. Review targets quarterly and adjust based on current data. An agent who has been consistently exceeding target for three quarters might need a higher target (with correspondingly higher earning potential). An agent struggling in a tough market might need temporary relief.
Tie targets to rewards
Targets without consequences are suggestions. Tie meaningful rewards to target achievement: higher commission tiers, bonus payments, exclusive territories, or public recognition. Zepys allows you to configure tiered commission structures that automatically reward agents as they hit higher performance levels.