What is bottoms-up quota planning?

Bottoms-up quota planning starts with individual rep capacity and builds upward to a team and org target, rather than starting from a top-down revenue goal and dividing it across reps.

How do I account for rep ramp in quota planning?

Apply a ramp schedule (e.g., 25% in month 1, 50% in month 2, 75% in month 3, 100% in month 4) to new hire quotas. Track actual ramp attainment to refine your assumptions over time.

How to Build a Bottoms-Up Quota Planning Model

Top-down quota planning is simple: take the board’s revenue target, divide by headcount, add a buffer, and hope for the best. It’s also how most companies set unachievable quotas.

Bottoms-up planning is harder but produces quotas that reps can actually hit - and that roll up to a target the business can believe in.

The Core Inputs
Step 1: Build the Headcount Plan
Step 2: Apply Ramp Schedules
Step 3: Factor in Historical Attainment
Step 4: Validate Against Territory Capacity
Key Takeaways

The Core Inputs¶

A bottoms-up quota model needs four inputs:

Rep headcount by month - Including planned hires and expected attrition
Ramp schedule - What percentage of full quota a new rep carries each month
Historical attainment - What percentage of quota your team actually hits
Territory capacity - The addressable opportunity in each rep’s territory

Step 1: Build the Headcount Plan¶

Create a month-by-month headcount grid:

Month	Starting Reps	New Hires	Attrition	Ending Reps
Jan	20	2	0	22
Feb	22	1	1	22
Mar	22	3	0	25

Step 2: Apply Ramp Schedules¶

New hires don’t produce at full capacity immediately. A typical ramp schedule:

Month 1: 25% of full quota
Month 2: 50% of full quota
Month 3: 75% of full quota
Month 4+: 100% of full quota

Calculate ramped capacity for each rep based on their start date.

Step 3: Factor in Historical Attainment¶

If your team historically attains 85% of quota, your model needs to account for that. There are two approaches:

Gross up quotas - Set quotas 15-18% above the revenue target
Plan to the median - Set quotas that the median rep can achieve, and let top performers create upside

Approach 2 is healthier for culture and retention. Unachievable quotas drive your best reps to competitors.

Step 4: Validate Against Territory Capacity¶

Each rep’s quota should be achievable given the opportunity in their territory. Compare:

Quota assigned vs. pipeline generated in the last 4 quarters
Quota assigned vs. total addressable market in the territory
Win rate × pipeline should exceed quota by at least 1.5x

If a territory can’t support the quota, either reduce the quota or redesign the territory.

Key Takeaways¶

Bottoms-up planning produces achievable, defensible quotas
Always account for ramp - ignoring it inflates capacity by 15-25%
Validate quotas against territory data, not just headcount math
Revisit assumptions quarterly as actuals come in