The War Room

Aussie needs help! Comp plan & Lead distribution for a new startup


I work for an Australian B2B startup thats currently refining its comp plan and lead distribution model. Our product is limited to Australia, which has three main states in terms of business/wealth distribution, two secondary states, and three smaller states and territories. We currently have three sales reps but will likely be 5 by the end of the year. At the moments it's a free for all on inbound leads etc. (even the sales manager jumps in!).

What have you seen work best for lead distribution? And comp plans for SDR's, AE's and referral partnership managers?

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Notorious Answer
Padre de Tequila, General of the Coors Knights
I feel like inbounds on a team that small should be a round robin type honestly. Makes things as fair as can be. Have a few friends that work with a similar lead distribution plan
Account Executive
Agreed - inbound should be all round robin. As for outbound, I've worked at places with territories before and that was fine and also worked at places where its a free for all and that was fine.

As for comp plans - I think the best is always when you pay a % of the deal. Depending on deal sizes and if its monthly or annual, I've seen comp plans that pay our 2,5,10, 20% all the way up to 75% of the deal. The higher percentage I saw at my old company when deals were monthly so you would get 75% of the first month they pay. It was a transactional sale. Now I am selling annual deals and we get paid anywhere between 6-10% of every dollar we sell.

Don't forget the kickers and accelerators for when reps hit, 60,80,100%+ of their goal. I saw a thread on here about sandbagging and the consensus is sales people will work their commission plan so if you are not paying people more to over achieve then they will just sandbag it for next month or next quarter.
Business Development Manager
Yea makes sense, keeps it simple. Do your friends do any self-prospecting? How do they handle that in terms of territories, verticals alignment with inbound?
Notorious Answer
Padre de Tequila, General of the Coors Knights
Inbounds aren't divided territory wise, only about from my understanding. That being said, he's on a purely inbound team so self-prospecting isn't much of a thing and the company is more well established. There's obviously a lot more you can do within inbound to help hash things out dependent on strengthsm, prospecting, etc
WR Officer
Business Development Team Lead
Agreed. Splitting up inbounds equally sounds like a better plan than free for all
+1 on the round robin one. Comp plans really depend. What's the base? If there's a good base then you can do anywhere around 5-20%ย  of the deal depending on the ticket size. Or else, I'd suggest to go even higher on the % if the base isn't great or non existent.ย 

I know of a company that offers no base but 50% of the deals. 90%+ of their sales people are making $200k+.ย 
Sales Boiii
g'day, nah yeah, round robin is the way to go for inbound leads. With that being said communication is key to ensure everyone gets a 'good' lead that comes in.
e.g. if you get a clear dud where the contact number is 1234 and the team knows it then you should get next lead.

end of the day making sure everyone is on the same page makes things a lot easier

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