SaaStr · 2022-03-03 · 1554d

Monthly vs Quarterly Sales Quotas: When to Make the Switch in SaaS

Monthly quotas should be maintained until approximately $10m ARR in SaaS companies because they provide better revenue visibility and predictability. Quarterly quotas inevitably create uneven revenue distribution (typically 15-25-60 pattern) and increase founder stress, though they become necessary at larger scales with longer sales cycles. The article provides four tactical approaches to delay the quarterly transition.

5 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

ARR Threshold for Monthly Quotas

$1m to $10m$

range

SaaS companies maintaining monthly quota structure

ARR Threshold for Quarterly Quotas

$100m$

minimum

SaaS companies required to use quarterly goals

Maximum ARR Consideration Range

$1m to $40m$

range

SaaS companies debating quota frequency

Minimum Annual Deal Volume

20-30deals

minimum

Required for viable monthly quota performance

Quarterly Revenue Distribution Pattern

15-25-60%

typical

Monthly revenue split within quarterly quota