PE-101 · Module 2
Working Backward from Quota
3 min read
Every quota has a math problem behind it. If a rep's quarterly quota is $300,000 and the average deal size is $50,000, they need 6 closed deals. If the Negotiation-to-Won rate is 60%, they need 10 deals in Negotiation. If Proposal-to-Negotiation is 60%, they need 17 proposals. If Discovery-to-Proposal is 60%, they need 28 discoveries. If Qualified-to-Discovery is 70%, they need 40 qualified leads. If Lead-to-Qualified is 40%, they need 100 leads. That is the math. Every rep should know their numbers.
Quota: $300,000 | Avg Deal: $50,000 | Deals Needed: 6
Working backward through conversion rates:
Won: 6 deals (target)
Negotiation: 6 / 0.60 = 10 deals
Proposal: 10 / 0.60 = 17 deals
Discovery: 17 / 0.60 = 28 deals
Qualified: 28 / 0.70 = 40 deals
Leads: 40 / 0.40 = 100 leads
Answer: 100 leads → 6 closed deals → $300K quota
If lead generation delivers fewer than 100, the math does not work.