'- Determine the gross margin LTV of your average customer- ⅓ of that number is the maximum you should spend on CAC (CAC Max)- Calculate Per Deal Lead Cost: the total cost of all lead acquisition and lead qualifying activity (lead gen and sales development labor and nonlabor) in the previous quarter, divided by # of deals in the most recently completed quarter- Subtract Lead Cost from the CAC Max to get the maximum possible AE Cost per Closed Won Deal per quarter- Divide the quarterly OTE cost of an AE by the maximum AE Cost per Closed Won Deal to determine how many Closed Won Deals per quarter an AE must sell to achieve minimum positive ROI- Multiply the minimum number of Closed Won Deals by the average bookings value per closed won deal to determine the minimum bookings quota per quarter- Decide the “surplus modifier” you will add to the quota to take into account potential AE underperformance, and multiply the modifier by the minimum bookings quota per quarter (i.e. 5% would be 1.05)