That internal sales competition is healthy.
Another leftover crappy sales idea from the last century is let's build a team by having them compete against each other.
The approach is the only way never to build a successful team.
Fear does not motivate one to do their best work.
By forcing people to compete against one another, you are creating a toxic environment.
What we want people to do is compete against their personal best. This approach helps (a) build confidence (b) creates healthy self-analysis (c) puts you in coaching rather than monitoring (d) encourages people to reach out to stronger members for guidance.