Blog · Territory, capacity and quota planning
Why paying reps on activity measures produces activity and paying them only on outcomes produces sandbagging, the three tests a measure passes before it goes into a plan, the rep controls it, it cannot be gamed by logging, and it reconciles to a ledger, which coverage and outcome measures pass, which fail, the coverage-at-cadence exception that passes all three, and the identity that every credited dollar in a plan is a ledger dollar once.
A compensation plan that pays on calls produces calls. One that pays only on revenue produces sandbagging and untouched books. Three tests say which measures belong, and one activity measure passes. This guide sets them out, applies them to the usual candidates, and gives the identity.
| Test | Question | Fails if |
|---|---|---|
| Control | Can the rep move it? | It depends on the quota-setter, the market or another team |
| Logging | Can it be met by data entry alone? | Fifty calls to ten accounts satisfies it |
| Ledger | Does it reconcile to a ledger of record? | It is a CRM figure with no identity |
| Measure | Control | Logging | Ledger | Verdict |
|---|---|---|---|---|
| Credited revenue | Yes | No | Yes | In |
| Quota attainment | Partly: the quota | No | Yes | In, with quota from potential |
| Calls per day | Yes | Fails | No | Out |
| Emails sent | Yes | Fails | No | Out |
| Meetings held | Yes | Fails: any meeting logged | No | Out |
| Pipeline created | Yes | Fails | No | Out |
| Coverage at cadence, defined touch, quality gate | Yes | Passes with the gate | Assignment file | In, as the one activity measure |
| Share of wallet at norm | Yes | No | Yes | In, for account managers |
| Net revenue retention | Yes | No | Yes | In, for success |
| Data quality score | Yes | It is about logging | Checks | As a gate, not a payout |
Coverage at cadence passes because it is about placement: which accounts were touched, against the accounts assigned, at the cadence the tier requires. It cannot be met by touching the same ten accounts, and the data quality score gates it so that a rep cannot pass by back-filling activity dates. It is the one activity measure that pays for working the book rather than for being busy.
Σ reps' credited revenue = ledger revenue, per period Σ split shares per line = 1; overlay credit apart every credited line has exactly one assignment on its date
| Component | Measure | Weight | Gate |
|---|---|---|---|
| Revenue | Credited revenue against quota from potential | 60% | Crediting identity |
| Base growth | Share of wallet at norm across the book | 25% | Norm version stated |
| Coverage | Tier one and two coverage at cadence | 15% | Data quality score above the floor |
Three measures, all three tests, one gate.
Calls in the plan. Fifty calls to ten accounts.
Pipeline created in the plan. Opportunities for everyone.
Coverage without a gate. Activity dates back-filled on the last day.
Credited total above the ledger. Paying for revenue the company did not earn.
Covirage computes credited revenue, share of wallet and coverage at cadence with the identities and the data quality gate on every run. The metrics governance solution describes the setup, and the crediting rules guide covers the identity.
One, at most, and only coverage at cadence with a defined touch and a data quality gate. It is the activity measure that predicts outcomes at most teams and the one that cannot be met by logging the same accounts repeatedly. Everything else that counts activity is coaching material, not pay.
It fails the second test: an opportunity can be created for any account at any value. Pipeline that reached a stage with an exit criterion, audited, is closer, and most plans still keep it out because the outcome it leads to is already paid.
Split shares sum to one per invoice line; overlay credit sits apart; every credited line has one assignment on its date; and the sum of credited revenue equals the ledger. A plan whose credited total exceeds the ledger is paying for revenue the company did not earn.