Territory programs can be configured to use one of the two types of Quota setting methodologies: Top-Down or Bottom-Up.
The Top-Down Quota setting methodology is the more common of the two. This methodology starts with a Quota value assigned to the root territory in the territory program. The Quota is then allocated and distributed to the lower-level territories, one level at a time, by the director or manager at each level. This process repeats until the Quotas are assigned all the way to the rep level territories.
As an example, let’s say that Bikes In Motion expects annual sales of US$20 million in the upcoming year. They have determined that $15 million of this will be in North America and $5 million will be in Europe. However, they would like to allow the management teams in each region to determine how those quotas will be allocated on the regional level. For this scenario, a top-down methodology would be ideal.