TheLaughingWolf profile picture
TheLaughingWolf profile picture

TheLaughingWolf

Business Development Manager

WR Officer
Politicker
Valued Contributor
+9

Bonus Compensation Structure

I'm curious to know what other companies bonus structures are like for SDR's, BDR's, ADR's


My company's structure is like this:


30% for touchpoints (Email/Phone only)

70% for hitting quota


If you hit quota, they don't care about touchpoints at all. It's more of just a safety net incase you miss quota.


We are trying to brainstorm a different structure where we don't have to include touchpoints.


Any ideas?

🔎 Prospecting
🧢 Sales Management
📊 Metrics
5

16 comments

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Coffeesforclosers
Notable Contributor
2
Director Sales and Market Development
75% on booking meeting, 25% on it hitting Qualified pipeline, spiff on closed won within 12 months 
TheLaughingWolf
WR Officer
0
Business Development Manager
What happens if someone misses quota?

Right now the quota is 8 qualified demos per month. If someone misses quota they will still get 30% of their bonus if they complete the required touchpoints.

But here is the rub, this bonus structure is for 3 different companies. Parent company and 2 subsidiaries. Since we are in extremely different verticles, our way of getting in touch is different.

One company is great for phones, one is great with phones and emails, the other you have to submit emails by way of customer support tickets for some prospects.

So he wants to try and find a bonus structure that does not rely on touchpoints. 
Coffeesforclosers
Notable Contributor
0
Director Sales and Market Development
Oh man, why didnt you say so, thats easy...........................crickets

So the SDR is responsible for setting demos for 3 different companies and 3 different products? Need a little more detail
TheLaughingWolf
WR Officer
0
Business Development Manager
Sorry, I explained it wrong. We have an Adr team across three different companies and products. Each Adr is responsible for their own company and product.

But we are trying to find a compensation structure that fits all 3 companies. Lol

I know, a very hard ask. Lol
Coffeesforclosers
Notable Contributor
0
Director Sales and Market Development
We are getting there now baby, lol. 

So all 3 businesses have varied levels of difficulties to set demos for? 
All 3 businesses the demos set is the same at 8? Achievable or different across the 3 companies again? Also is one line of business blowing quota out of the water while the othes struggle? 
TheLaughingWolf
WR Officer
0
Business Development Manager
Yes they do. And yes all are set at 8 right now, there is a possibility of 8 being achievable, and yes one company is blowing the others out the water while the other two struggle.

So far the three Adrs are sitting at

163%
50%
25%
Coffeesforclosers
Notable Contributor
1
Director Sales and Market Development
Enough data to do a whole variable commission for all and different quotas for each? 

Total Variable Comp- call it 50k 
Rep A (163%) Quota 8- $520.83 per SQL (can also do 70% on meeting and save the 30% for touch points
Rep B (50%) Quota 5- $833.33 per SQL (same on 70%) 
Rep C (25%) Quota 3- $1388.89 per SQL (same on 70%)

This is for 3 companies with harder cycles, just an example if this is out of context let me know. I have done this with 2 business units and it worked pretty well. It does get out of whack quick and rep/company 3 could really accelerate at $1k+ per over. Have you looked at total variable and changing goals for those 3 differnt biz types?

At least there is consistency in total variable and morale would be higher
TheLaughingWolf
WR Officer
0
Business Development Manager
Thanks for all your help @Coffeesforclosers . I do like the idea of being paid per meeting. We have brought up the idea of changing the quota for the different companies, but that was a no go.

I believe company 2 and 3 have a much harder cycle than company 1. 

Company 1 can close and generate revenue right away

Company 2 can close, but will not be up and running for 1-6 months depending on bandwidth for their engineers, and will not see any revenue until after integration. And even then it is a pay as you go service, so there might not be revenue generated for months after integration.

Company 3 deals with Enterprise companies, so it is a longer cycle, but after the contract is signed, they will get revenue in 1-2 months.

I think they wanted to create an equal playing field for all 3 companies ADR's. So there wouldn't be any  jealousy between the reps. 
Coffeesforclosers
Notable Contributor
1
Director Sales and Market Development
Yeah man thats a loaded mash potato for sure! I think consistent variable across and break up how you see fit with Quota, but shit thats a bear. Best of luck, happy to help in any way i can. 
TheLaughingWolf
WR Officer
0
Business Development Manager
I really appreciate it. Thanks so much. And I'm sure I will be asking for your help. Lol
Telehealth_2the_Moon
Notable Contributor
1
Director of Business Development
What problem(s) are you trying to fix by changing the structure?
TheLaughingWolf
WR Officer
0
Business Development Manager
My Manager doesn't fully love having touchpoints as part of the bonus structure. But how do we ensure people receive some of their bonus if we are not tracking touchpoints. So we are trying to brainstorm some other Commish structures. 
Jedi_Zizz
0
VP
I was just approved to build out our comp plan so looking for some advice. Not sure if you all will be able to provide insight but I work in sales for a pro sports team and typically comp plans revolve around how many tickets you've sold along with some team goals. Any advice?
10XQLA
Politicker
0
Medical Sales Assassin
This is a terrible structure.... Touchpoints are expected not rewarded.... How long is the customer in your funnel?
TheLaughingWolf
WR Officer
0
Business Development Manager
I agree. It was a terrible structure. But I was able to get a few things pushed through, but had to accept some things that I did not like. This is the new comp plan.

1. 8 QSO's per month starting to pay out at opp number 5
2. Still the 60 touchpoints per day (Could not get rid of this)
3. 40 engagements per month (Any call that is not a direct not interested, emails asking for more info, LinkedIn messages)
4. An accelerator program that pays 125%, 150%, and 200% 

It was some give and take but I am actually pretty happy with the new comp plan. 
0
Area Sales Manager
We all come from companies filled with acronyms of roles/positions, strategies, and tactics. Are you able to better define what SDR, BDR, and ADR is? I’m assuming it’s a sales rep that sells to an end user or business.

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