I've gone down a rabbit hole on understanding my pay plan.
It's encouraging to find that it's actually pretty good.
Paid out monthly on YTD attainment on annual goal. Consistent MRR from a managed book of accounts. Reasonable growth targets if you can bring in 1-2 good net new logos per quarter.
This exercise was mainly to understand how seasonality, time to revenue, etc could cause "feast or famine" months throughout the year and defend against "quicksand".
Lessons learned
- Choose your accounts wisely...will they perform to your forecast?
- Forecast strategically so you end up committing to an attainable annual target
- Make sure your set OTE yields a fair commission rate to that target
A key metric I ended with was finding out my commission rate to quota/OTE fails around 5%.
How does that compare to other ENT/MM commission rates?
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