Podcast
December 20, 2024
Episode 20: RevOps vs. GTM Ops
Learn the difference between revenue operations and go-to-market operations and why titles, reporting structures, and a centralized leader are critical.
In this episode of the RevOpsAF podcast, co-host and RevOps Co-op CEO, Matthew Volm, welcomes guest Nabeil Alazzam, CEO and founder of Forma.ai. Drawing on a background in management consulting for Fortune 100 enterprises and years of guiding large sales teams, Nabeil tells us his take on which data-driven approaches work best for sales planning.
Together, Matt and Nabeil delve into the practical steps for refining 2025’s sales planning by rethinking territory assignments, improving quota accuracy, and linking incentives more closely to desired outcomes. Listeners will gain actionable strategies to align revenue operations with strategic goals, elevate rep engagement, and foster sustainable growth.
Historically, territory design was focused on splitting up a total addressable market as equitably as possible. The emphasis was put on account density without considering how realistic it was for a salesperson to cover the accounts efficiently or effectively.
“You think you're being equitable and giving everyone the same quota but, in reality, what you've done is you've given everyone a different opportunity of achieving said quota. And then, we base performance against quota as the measure of how good a, or bad a rep is.” Nabeil Alazzam
Nabeil’s recommended approach shifts away from relying solely on surface-level metrics like revenue or account count because deeper segmentation and correlations reveal hidden imbalances. Applying broader data insights—such as historical buying patterns, customer behaviors, and even external factors—ensures each territory reflects realistic potential and workload.
By defining territories around specific customer segments or product categories, RevOps teams ensure that seller expertise is aligned with a segment’s specific buyer needs rather than forcing salespeople to become generalists. This approach streamlines coverage, drives efficient resource allocation, and sets the stage for more accurate quota setting.
Jump to the clip to hear why old geographic territory models are out-dated and why we need better alignment with buyers in today’s market.
Back in the old SaaS “growth-at-all-costs” days, the board assigned a company a growth target, executives added some buffer just in case, and then we divided the total number by what we thought was possible for a salesperson to hit and SHAZZAM! You had your quotas.
Back in the old days, it also wasn’t uncommon for 80% of the revenue number to be sold by 20% of the sales team. Complaints about territory inequity and unreasonable targets abounded. Setting a uniform quota for all reps—without accounting for territory differences—risks misidentifying top performers and hiding talented reps by shouldering them with lousy territories.
In an era when we are drowning in data, doesn’t it make sense to instead craft quotas specific to a territory’s unique potential?
A clear and intentional linkage between quota design and territory potential supports performance-based pay structures that reward truly exceptional performance. Without these connections, companies risk overpaying weak performers or under-rewarding their star sellers.
Integrated incentives encourage the right behaviors, reduce attrition among top talent, and create a cohesive revenue engine geared for continuous improvement.
“If you don't set up territories correctly and then create accelerators, the good reps that are in bad territories don't make money and they leave. The reps that are a really good territory can overperform and make a ton more money than we should be paying them.” Nabeil Alazzam
Jump to the clip to hear Nabeil share what makes a good quota setting methodology versus a poor methodology.
The best sales reps are the reps who read their compensation plan with a magnifying lens, looking for ways to game the system. If your top performers feel better if they’re pulling one over on the people who sign their checks, why not lean into it?
“You should design a comp plan that when gamed produces the outcome that you want. And it's very difficult to understand how it's going to be gamed if you're not putting yourself in the shoes of the rep throughout the sales process.” Nabeil Alazzam
The best revenue operations professionals learn how to plant “easter eggs” that help reps make more cash and further company objectives – aligning incentives with strategic goals. The ultimate aim is to inspire reps to push boundaries, foster innovation, and deliver exceptional customer value.
Jump to the clip to hear how Nabeil thinks about giving reps the chance to “game” the system.
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