How to Build a Compensation Plan


08 Sep 2022

09 Sep 2022

👷🏼‍♂️ WORK IN PROGRESS 👷🏼‍♂️

Points to write about


  • Alignment with company goals
  • Simplicity
  • Accelerator on expansion
  • Seasonality (EU)
  • bookings vs. billings
  • clawbacks
  • ramp up

Key Points for a Great Compensation Plan for Sales Reps

  1. Clear and Measurable Goals

  2. Commission and Bonus Structure

The compensation plan should have a commission and bonus structure that rewards sales reps for exceeding their goals and provides additional incentives for exceptional performance.

  1. Sales Quotas

  2. Performance Metrics

  3. Equity and Stock Options

  4. Non-Financial Incentives / Outside Comp Plan

  5. Regular Reviews and Adjustments

Regular reviews of the compensation plan should be conducted to ensure it remains competitive and aligned with the company's objectives. Adjustments should be made as necessary to motivate sales reps and retain top talent.