Updated: Monday, November 30th, 2009

Companies that eliminate sales quotas may foster more successful business careers among their employees, according to a new study from the Stanford Graduate School of Business.

Researchers found that the profits of one Fortune 500 company rose by $1 million per month when the organization removed a quota system for its sales agents.

While quotas provide incentives for sales representatives to meet certain goals, professionals whose figures exceed these figures may stunt their drive to make additional sales.

Conversely, individuals who do not anticipate meeting their goals may be inclined to postpone them until the next sales cycle.

Harikesh Nair, one of the study's authors, said the quota system ensures "managers never know exactly how much time and effort their salespeople are putting into their work."

As a result, the study's authors suggest compensation schemes that are based on the amount of work an individual puts into their work rather than the end result.

Associates, bachelors and masters programs in marketing or business may help sales professionals land jobs that feature similar innovative compensation systems.

Career opportunities for sales representatives, whose median annual earnings were $64,440 in May 2006, are expected to grow by 9 percent over the next seven years.

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