Should Sales Managers Have Individual Sales Targets?

One of the most common questions business owners and directors ask when structuring a sales team is whether the sales manager should also carry an individual sales target.

The answer is not a simple yes or no. In some businesses, especially smaller or growing companies, a sales manager may need to remain commercially active. In larger or more mature sales teams, individual sales targets can create conflict, reduce coaching quality and weaken accountability across the team.

This guide explains when individual sales targets make sense for sales managers, when they become a problem and how to structure sales leadership KPIs more effectively.

Why Businesses Give Sales Managers Individual Targets

Businesses usually give sales managers individual targets for practical reasons. The company may still need them to generate revenue, manage major accounts or support a small sales team.

• The team is small and cannot yet support a non-selling manager
• The manager still owns key accounts or strategic relationships
• The business wants to keep the manager commercially sharp
• Revenue pressure means everyone needs to contribute directly
• The manager was recently promoted from a top-performing sales role

In the right environment, this can work. But it needs to be structured carefully.

The Player-Coach Problem

A sales manager with an individual target often becomes a player-coach. They are expected to sell, coach, lead, forecast, report, manage performance and support the team at the same time.

That can work for a short period, but it becomes difficult to sustain as the sales team grows.

When both responsibilities are full-time expectations, something usually gives. Most often, coaching and team development are the first things to disappear.

When Sales Managers Become Competitors

One of the biggest risks of giving a sales manager an individual target is that they can become a competitor to their own team.

• They may keep the best accounts for themselves
• They may prioritise their own deals over helping reps close theirs
• They may avoid delegating opportunities
• They may unintentionally create resentment inside the team
• They may become less objective when measuring performance

Even when the manager has good intentions, the structure can create tension. The team needs to believe the manager is there to help them win, not compete against them.

Why Coaching Usually Suffers

Good sales management requires time, patience and consistency. It is not just about checking activity numbers at the end of the week.

Sales managers need time to:

• Coach calls and meetings
• Review pipeline quality
• Improve poor sales habits
• Support underperforming team members
• Develop future leaders
• Run effective one-on-ones
• Help the team understand targets and expectations

If the manager is also responsible for carrying a significant personal target, coaching often becomes reactive instead of structured.

Small Business vs Enterprise Sales Structures

The right answer depends heavily on the size and stage of the business.

The mistake is using the same sales manager structure at every stage of growth. What works with two salespeople may not work with ten.

When Individual Sales Targets Can Work

Sales managers carrying personal targets can work in specific situations, especially when the expectations are clear and the individual target does not conflict with team leadership.

• The team is small and still developing
• The manager owns only a limited number of strategic accounts
• The manager’s target is secondary to team performance
• The role is clearly defined as player-coach
• There is enough time allocated for coaching and leadership
• Team members understand account ownership and opportunity allocation

When Individual Sales Targets Become a Problem

Individual targets become a problem when they prevent the sales manager from doing the actual management work.

• The manager is constantly selling instead of coaching
• Team members receive limited support
• Pipeline reviews become rushed or inconsistent
• Underperformance is not addressed early
• Forecasting becomes inaccurate
• The manager keeps too many key accounts personally
• Salespeople feel unsupported or blocked from opportunity

At this point, the business may technically have a sales manager, but the team is not being properly managed.

Better KPI Structures for Sales Managers

Instead of giving sales managers a large individual target, businesses should consider leadership KPIs that reflect the outcomes a manager should actually drive.

Examples of Better Sales Manager KPIs

• Team revenue and margin performance
• Pipeline quality and forecast accuracy
• CRM compliance and follow-up discipline
• Team activity standards
• New salesperson onboarding outcomes
• Retention and account growth
• Sales team development and capability improvement
• Underperformance management and coaching cadence

These KPIs encourage the sales manager to build a stronger sales function, not just protect their own personal number.

Signs Your Sales Manager Is Overloaded

A sales manager with too many competing responsibilities will usually show warning signs before performance drops completely.

• Sales meetings become irregular or reactive
• One-on-ones stop happening consistently
• The manager is always busy with their own customers
• Salespeople are unclear on expectations
• Forecasting becomes unreliable
• Managers avoid difficult performance conversations
• New hires do not receive proper onboarding
• The team relies too heavily on one person to close deals

These signs usually mean the role design needs to be reviewed.

The Final Recommendation

Sales managers can carry individual targets in certain businesses, especially smaller or early-stage teams. But as the business grows, the manager’s focus should shift from personal selling to team performance.

The best structure is usually one where the sales manager is measured on the commercial success of the team, the quality of the sales process and the development of the people they lead.

• If the business is small, a player-coach model may be practical
• If the business is growing, gradually reduce personal selling responsibilities
• If the team is established, focus the manager on leadership and team performance
• If the manager has a target, make sure it does not compete with the team

Frequently Asked Questions