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Sales EAE Quota is the new customer contract value that a salesperson is expected to bring in total during a given period. This metric is used to estimate a salesperson’s variable compensation. Depending on their performance against the quota, a salesperson’s variable compensation is determined. Typically, performing above quota means higher variable compensation whereas performing below quota results in lower variable compensation.
Suppose John Smith has a quarterly ARR quota of $250K. This means that he is expected to bring in $250K of new ARR from customers every quarter. Based on whether he gets ARR above or below this quota, his variable compensation will be determined.
Companies focus on Sales EAE Quota to understand how much new business will salespeople bring in. It acts as a guide to forecasting new customer enrollment through the sales teams (depending on if they achieve their quotas).
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