The War Room

Creating a bonus comp plan

I was given the position of Team Lead for the company I work for. And with it came this first task they would like me to do. Well, it's a few different tasks rolled into one.

  • Come up with a bonus structure for all three companies in the organization. Right now all 3 companies are paying bonuses only on qualified meetings and daily touchpoints
  • First Company sells into enterprise accounts. Fortune 500/1000 companies that have $1 Billion in revenue and the ability to spend $1 Million a year
  • Right now the quota is 6 qualified meetings per month, with the meeting being qualified by the AE in the second or third meeting
  • The second Company sells into the trucking Industry for freight brokering
  • Right now the quota is 20 conversations per month and 5 Customers signing up.
  • The third company sells to online marketplaces, classifieds, eCommerce. They have to have $1 Million going through their website each year, Deal with currencies that the company supports, and in Non-Sanctioned countires.
  • Right now the quota is 8 qualified meetings per month

  • The current bonus structure for all 3 companies currently is 70% if the ADR's hit their monthly quota, and 30% if they hit their daily touchpoints of 60 per day.

I'm really curious as to what other SDR, BDR, ADR comp plans are out there.

  • The second part is to come up with how many ADR's should be hired to support the AE's
  • This task seems to be less complicated. Am curious to know what other companies are doing for the ratio of SDR, BDR, ADR to AE

  • The third task is to come up with an accelerator program. I was thinking something like 1.25 or 1.5 times the value of the qualified opportunity

I know this is a lot of work, and I might be biting off more than I can chew, but I would love any feedback.

Thanks for your help everyone. I truly appreciate it.

๐Ÿ’ฐ Compensation
๐Ÿ‘ฅ Hiring
๐Ÿงข Sales Management
Head of Sales
My tip would be to to keep it as simple as possible. Keep one metic to pay on: meetings set and done. Then only look at touch points when theyโ€™re not hitting quota and you can even penalise them extra - e.g. -20% payout because you basically didnโ€™t do your job. As for the accelerator: I love the simple carrot and the stick thinking. So e.g. 75% of target payout for underperforming, 100% payout on target and 125% for over achievement Hope that helps!
WR Officer
Account Development Representative
That does help. Thanks @DaveGreen. I was kind of thrown into this but I want to make this great for both the ADR's and for the Company.ย 
Head of Sales
Just try to get it right the first time around. Itโ€™s really hard to satisfy everyone but no one likes their comp plan to change ๐Ÿ˜…
Comp plan nightmares
Double the Quota, Same Comp Plan