Marketing expert witness Don E. Smith, President, American Consulting Group, LLC, writes on THE LIMITATIONS OF USING SALES QUOTAS AS THE PRIMARY MEASURE OF PERFORMANCE:
A. $ sales quotas should be only one of the measures defining a distributor’s performance.
B. Additional measures of performance and capability can be of major assistance. They do not add significantly to the time and complexity of the program.
C. Ideally, measures of market potential should be included. Though potentially complex and time consuming, a knowledge of market potential and share will have a major positive impact to the principal’s distributor management programs.
D. Utilize information with your annual joint planning sessions with each distributor. Jointly define action plans. Follow-up. Page 4, table 5. Summary of qualitative and quantitative measures.