How To Set SMART Sales Goals

The place I think most managers get it wrong is by setting goals on what they hope will happen. Goals must be realistic so the Sales Manager and Salespeople really believe they have a chance of achieving them.

Some key points about sales goals:

1. Sales goals are not just a once-a-year thing. Yes, you should set annual goals. You can also set them quarterly, monthly, weekly, and even daily. Once you get your formula down, it’s the same process.

2. This is about setting sales goals. There are ways to set goals for other job functions, but sales goals are unique to salespeople and need to be treated that way. Sales goals can be measured in the amount sold, commissions earned, new customers gained, etc. Measure whatever gets you to your desired results. The key is to measure.

These are the SMART parts you need for your sales goals:

1. Specific: Know what you want. I mean, know exactly what you want. You must have a precisely defined target/goal, or you’ll be flailing away hoping you’ll hit it.

2. Measurable: You need to know your numbers. If you want a Salesperson to make $10,000 in commissions in a month, you need to work backward. Here's the questions you and they need to answer to get to that $10,000:

A. Based on your close rate, how many Opportunities are needed and of what value? B. How many appointments, demos, etc., will become Opportunities? C. How many qualified Prospects are needed for that many Opportunities? D. How many calls, emails and outreach activities will deliver that many qualified Prospects?

3. Achievable: People need to believe, from the beginning, they can achieve a sales goal. If they don’t, they probably won’t build up enough inertia to get going and make it happen.

4. Realistic: To think you can, for example, double your sales without adding Salespeople, marketing, new products or services, or something else, is setting yourself up for failure. Dream big, but be realistic.

5. Time-Based: Put a "complete-by date" on the goal. This is usually dependent on the length of your average sales cycle. It could be 30, 60, 90, or more days. One other thing: if your product’s average sales cycle is 90 days, it’s too late to set goals for this month. You need to think ahead!

Good goals drive behavior. Bad goals create sandbagging and noise. This course shows how founders and CEOs shift from founder-led selling to fractional-style sales management with targets that tie to pipeline stages, activity, conversion rates, and forecast accuracy. You’ll learn how to set KPIs, monthly and weekly checkpoints, and coaching rhythms that hold the team to standards without you on every call.