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How to set sales goals: The Preparation.


There are entire books dedicated to learning how to set goals.  This is the Sales Getters approach to setting sales goals.  Let’s get a couple things out of the way: 

1.  Goals are not just a, once-a-year thing.  Yes, you should set goals annually.  You can also set them quarterly, monthly, weekly and even daily. Once you get your formula down, it’s the same procedure.

2.  This is about setting sales goals.  There are other ways to set goals for other job functions, but sales goals are unique to sales people and need to be treated that way.  Sales goals can be measured in amount sold, commissions earned, new customers gained, etc.  You measure whatever gets you to your end result.  However, if you measure and set a goal for something other than commissions earned, you have to know how attaining that goal will translate into dollars in your pocket.


These are the parts you need to put together your sales goals:

1.  Know what you want.  I mean, know exactly what you want.  You have to have a precisely defined target/goal or you’ll just be flailing away only hoping you’ll hit it.

2.  You need to believe from the beginning you can achieve your goal.  If you don’t totally believe with every fabric of your being that it can be made, it probably won’t be made. 

3.  Once you believe your goal is reachable, you must ingrain that goal by writing it down and saying it out loud over and over again.  You must do this every day.  Yes, you may look and sound silly to yourself, but you will be the one laughing on your way to the bank.

4.  You need to know your numbers – it must be measureable.   So, if you want to make $20,000 in commissions in a month, here are list questions you need to answer for that to happen:

          a. How many calls from my list will deliver how many qualified prospects?

          b. How many qualified prospects, will result in how many appointments, demos, etc.?

          c. How many appointments, demos, etc., will become opportunities?

          d. How many opportunities do I need and of what value?

Your sales cycle may be 30, 60, 90 or more days.  So, if your product’s average sale cycle is 90 days, it’s too late to set goals for this month.  You need to think ahead. 


Sales Homework – Get your numbers together.  If you have historical data, that’s great.  If not, find the top selling rep and use their numbers.

Sales Managers – This should be an exercise that gets reviewed on a monthly basis.  Even if your goals are quarterly or annually, you need to make sure your sales reps stay on track.   Go directly to the next lesson:  Setting Sales Goals:  Doing the math.   Read more...


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