The conventional logic behind setting high targets is:
- Profit. Self-explanatory.
- Company culture. It’s better to aim high and miss than to aim low from the start. Also, if you don’t give sales reps a chance to push themselves to the limit, then they might never know what they’re capable of.
- Top-down management.
Obviously it would be more logical for sales teams to set their own
targets, provided they can be trusted to put the company’s interests
(profit/revenue) over the chance to get comfortable/lazy (get paid for
doing less work than they could). But since that’s a difficult
environment to establish, and business is business, sales targets are
usually set based on broader company goals for revenue or growth.
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