Changing Commision

My company does not have a commision contract, in fact, commision isn't even technically guaranteed as part of our employment contract. The benefit to this is that they are always adjusting what are payouts are and how we earn commision, usually the payouts increase while the points that our commision is based on is changing basically every other month.

They are doing this to align our efforts to the company OKR. For instance, next month you will get more points for negotiating a lower rate and get points taken off for higher rates, while this month points were largely based on the value of the company we are selling.


Do other sales orgs do this? I get aligning with company goals and I get that the only constant is change, but there have been changes on average every 3 months to this is and it is starting to get frustrating when planning some of the longer sales cycle deals

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3
salesnerd
WR Officer
3
Head of Growth
That's super frustrating. A good sales org should change their comp plan once a year, if they change it at all. 

How old is your company? If it's a newer company they might be trying to dial in exactly what the compensation sold be based on, which is more understandable. If you're an established company then changing it up once a quarter is shitty. 

I've seen some sales orgs have a part of the commission dedicated to changing company goals. Like 75% of your comp plan stays the same every quarter, but 25% might change quarter to quarter. Even still, it's typically a bonus associated with hitting an OKR. 
SalesViking
Valued Contributor
1
Partner Dev Consultant
about 7 years old. However, we added a new type of sale about 4 years ago and so they are trying to narrow down what benefits the company the most and reward that behavior, which I get. Also we are at a point now where shear volume does not equal best for the company, we want high quality partners at a beneficial rate right now.
salesnerd
WR Officer
1
Head of Growth
Even after 4 years, the company should have figured out the comp plan situation. If volume isn't what you need, compensate based on contract size or based on margin or something. No need to change it every friggin month. 
CadenceCombat
Tycoon
1
Account Executive
This is one of the most bizarre approaches I’ve ever heard and would be a red flag for me.

I would be super frustrated to deal with this and I would certainly voice that frustration to leadership after maybe talking to the other sales reps to see if this is something that can potentially be brought up and discussed in a group setting.
CuriousFox
WR Officer
1
🦊
You still around bb?
CadenceCombat
Tycoon
1
Account Executive
Daddy needs a new macbook, so yes. Miss me? 😉
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