How to Set Realistic Goals for Your Sales Team Using Market Share
Let’s say you sell new construction homes and last month, the market you operate in sold 100 new construction homes. Your team sold 10 of them, representing a 10% market share.
Historically, your company has operated between 10–15% market share, so this result is well within your normal performance range.
Now let’s look ahead.
Start With Last Year’s Data
Looking at the same month last year, your company sold 20 homes, which also represented a 10% market share.
That tells us something important:
If 20 homes were 10% of the market, then the total market last year was 200 homes.
The math:
20 homes ÷ 0.10 = 200 total homes sold
Adjust for Market Conditions
You expect the market to be about 20% slower than last year due to broader conditions—interest rates, buyer hesitation, or reduced inventory.
So instead of 200 total homes, you project:
200 homes × 0.80 = 160 total homes this year
Set a Realistic Market Share Target
You believe internal conditions have improved—better systems, stronger coaching, clearer process, or a more competitive product. Because of this, the team can comfortably operate at a 12% market share, even in a slower market.
Translate that into a sales goal:
160 total homes × 0.12 = 19.2 homes
Rounded, that’s 19–20 homes for the month.
Why This Approach Works
Instead of guessing or simply “adding growth,” this method:
- Anchors goals in real market data
- Accounts for external conditions, not just internal ambition
- Builds credibility and buy-in with the sales team
- Separates market decline from sales execution
If your team sells 19–20 homes in this scenario, they didn’t “miss last year’s number”—they outperformed the market.
The Leadership Insight
Good sales goals aren’t about optimism or pressure.
They’re about context.
When leaders measure performance using market share instead of raw volume:
- Accountability increases
- Excuses decrease
- Coaching gets sharper
- Performance discussions become factual, not emotional
Market share turns goal-setting into leadership—not wishful thinking.