salesVP80 profile picture
salesVP80 profile picture

salesVP80

VP Sales

Opinionated
Catalyst
Valued Contributor
+3

Biz Dev Manager Compensation

Our org has historically compensated business development on meetings set (spiffs) and opportunity dollars created (quarterly bonuses).


We are in the process of changing that culture and incentivizing business development on closed won. This is going to take some time to change but we will be hiring a new biz dev manager and I'd like to start with their compensation structure.


My thoughts are to have base + small incentive on opps created + larger incentive on closed won.


Can anyone share a motivating business development manager compensation structure?

๐Ÿ’ฐ Compensation
๐Ÿงข Sales Management
9

13 comments

Sort by:
Gasty
Notable Contributor
6
War Room Community Manager
Being a Business Development Manager myself, I'd ๐ก๐š๐ญ๐ž this kind of an incentive plan.

Humans are built to have control, biologically. Me not getting paid because of mediocre AE's would be unfair. Me getting paid 2X with a 1/2 pipeline is equally unfair.

Lion's share of the incentive of both BDR and BDR Manager should be on Pipeline (Meetings / Opps / Piped Amount / combination of these).

Additional SPIFFs on revenue closed through these opps should definitely be there. But only as a motivating factor to keep getting quality opps which can convert.
aSaaSinator
Good Citizen
1
Sales Director
I disagree. The only way for a sales engine to work efficiently is for each piece of that engine to work in harmony with the others. Incentivizing too heavily for meetings and opps is begging to have misleading numbers. If the BD is reliant on the AE to sell, then he/she is more inclined to find good opps and not waste the AE's time with lackluster non-qualified leads just to "blow out" their own numbers. It breeds contempt and infighting and results in a broken sales engine.
TennisandSales
Politicker
4
Head Of Sales
so I think SDRs should get paid when deals close. nothing huge but something.

but building this into the OTE is wrong.

SDRs have little control over if a deal closes so they should not have that effect their OTE.
antiASKHOLE
Tycoon
3
Bravado's Resident Asshole
Random spifs on appts set, paid a percentage of revenue closed. Leads to higher quality leads
aSaaSinator
Good Citizen
0
Sales Director
I don't know what the magic numbers are exactly, but you have to keep meeting quotas achievable or the AE is just going to get shitty leads.
Kosta_Konfucius
Politicker
3
Sales Rep
Having it be built onto the deal close for OTE will cause a huge problem between AEs and SDR. SDR should find qualified opportunities, the AE needs to close.
CuriousFox
WR Officer
2
๐ŸฆŠ
QUALIFIED FOR THE LOVE OF ๐Ÿฌ๐Ÿฌ๐Ÿฌ
salesVP80
Opinionated
1
VP Sales
If SDR/BDR are chasing deals in ICP, everyone should have their eyes on the closed won prize, right?
aSaaSinator
Good Citizen
2
Sales Director
Exactly, CF! SDR's are concerned that their AE's won't close the deal? While that can happen, it's much more likely that the SDR isn't qualifying leads properly. I can't tell you how many times I've watched an SDR with 6 months of experience tell me, "This is great lead". Two questions into the meeting I recognize this lead has no budget and no power. SDR's, qualify those leads before you send them to us and we'll close more of them instead of having to disqualify them ourselves. I want you to make more money as well, but we have to be a team. That's why I would link the majority of your pay to closing deals.
GDO
Politicker
2
BDM
Compensate on what they need to do. What gets measured gets done. People act on what influences their wallet
antiASKHOLE
Tycoon
2
Bravado's Resident Asshole
getting paid 1-2% on the revenue closed is normal to what I have seen
FinanceEngineer
Politicker
1
Sr Director, sales and partnerships
Depends on how much work they are doing on the closing. If itโ€™s just a pass off after a qualification, then i canโ€™t see it being more than 1% of the deal size (so <= 10% of an AEโ€™s commission). If they do more, then obviously it would be higher.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
SDRs should get paid on what they contribute. No more, no less. Donโ€™t pay them on things which are outside their control unless itโ€™s a quarterly bonus based on team attainment or something similar.

Related posts

10

Promotion offer: Biz Dev Manager or AE. What do you take? ๐ŸŽฏ

Question
๐Ÿ‘‘
๐Ÿ’ฐ
๐Ÿงข
15
14
Members only

Business Dev or AE Role?

Question
๐ŸŽฏ
๐Ÿš€
โ˜๏ธ
26
8

Director of Sales Compensation

Question
๐Ÿ’ฐ
๐Ÿงข
โ˜๏ธ
10
Bravado is a community of trusted sales professionals endorsed by their customers.
Apple Store logo
Products
The War Room Jobs Salary Guide Tech Sales U
Company
About Us How It Works Blog Bug Bounty
Contact
Press Careers
ยฉ 2024 Bravado Inc. All rights reserved.
Privacy Policy Legal and Privacy Center Sales Jobs
If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.