Anyone else have decelerators?
If so what do they look like?
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Decelerators in comp plans
does your comp plan have decelerators?
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How did you get this video of me reading this post??????
Sly like a 🦊
Gif queen!!
We do not, and that sounds like a terrible idea.
"Commission is usually a carrot, what if it was a stick as well!?"
"Commission is usually a carrot, what if it was a stick as well!?"
My last company did, which is why I left. Basically if you didn’t hit quota for a quarter the company took 50% of your residuals. They lost over 80% of their sales team in the first year of that comp plan.
how shocking people left :D
And that my friends, is how a company dies.
After a single quarter?! That's ridiculously punitive.
it was, which is why they (and me) left.
What else could you do in that situation
That's a great way to get top reps to leave.
Exactly. It doesn’t just punish low performance but, also top performers on their way
Ouch. Quick way to encourage turnover.
The fact that this is actually a thing is nuts. As though sales isn’t tough enough with incentives.
Used to have them on some products that were end of life. Funnily enough end of life was since extended
Can you share some context on what yours look like? I've never had 'em and never want 'em.
^^this! Tbh - I never even knew this was a thing
Sounds downright awful..
Paid out only 70% until you hit 50% quota.
Thats such a lazy way to put together a comp plan. Using the same payouts you could create a pay plan with just accelerators that isnt incredibly demotivating.
I'd love to hear about this fucking awful method.
I have heard hurdles to get anything, but never negatives.
I will never forget this place I interviewed with right out of college. They called it the "hole". You had to hit quota to get paid out. Plus if your quota for 1 Month was $2k, and you sold nothing, they would add the $2k in commission to the month 2 forcing you to sell $4k in a month to make anything. Then you miss that, and then in month 3 you need to sell $6k.
I have also worked at places where the normal commission was 10%, but if you sold 3x your annual quota to one client, they would cap the remaining commission to 3%.
I have also worked at places where the normal commission was 10%, but if you sold 3x your annual quota to one client, they would cap the remaining commission to 3%.
What kind of sadist comes up with these plans?
They wonder why reps only do the minimum on those plans 🤦♂️
This shit unfortunately happens all of the time. I spent a short time with a company that….
a) would only pay commission once you hit 50% of your monthly quota
b) felt it here was no issue capping payment and only paying you on your monthly target and not a penny over if you exceed
c) would not pay reps until the company got paid. So the incentives to get customers to upgrade at renewal were crushed.
a) would only pay commission once you hit 50% of your monthly quota
b) felt it here was no issue capping payment and only paying you on your monthly target and not a penny over if you exceed
c) would not pay reps until the company got paid. So the incentives to get customers to upgrade at renewal were crushed.
First AE job was for a place that had sub 10% quota attainment. $0 commission until you hit 50% of outrageously high quota. Revenue is down after two years and turnover is over 50% lol.
In this instance it is a 30% deceleration until you hit 50% quota. Some AEs on quarter and some on half year. This is a big tech co & it’s really not landing well with top performers.
Nah NameDrop that company so everyone here knows not to go work for them 😂 that’s a scummy ass comp plan
At my last company, I was already searching for a new spot and I got an email from our VP about how in the next month we are adding decelerators into the comp plan.
I kicked my search into high gear and bounced like MF.
They essentially laid out that to be paid commission, you have to hit certain % of monthly quota. My quota at the time was around 40-45K per month so it was something like:
0-75% quota attainment = 0% commission
76-80% = 0.5% commission
80-85% = 1% commission
85-90% = 1.5% commission
90-95% = 2% commission
95-100% = 2.5% commission
Yes, this is low percentage but it was in physical goods sold to industrial/large scale purchasing.
But it was also HALF the 5% that I was hired on at. I was livid that I was getting chopped off at the knees.
I kicked my search into high gear and bounced like MF.
They essentially laid out that to be paid commission, you have to hit certain % of monthly quota. My quota at the time was around 40-45K per month so it was something like:
0-75% quota attainment = 0% commission
76-80% = 0.5% commission
80-85% = 1% commission
85-90% = 1.5% commission
90-95% = 2% commission
95-100% = 2.5% commission
Yes, this is low percentage but it was in physical goods sold to industrial/large scale purchasing.
But it was also HALF the 5% that I was hired on at. I was livid that I was getting chopped off at the knees.
Yep we have a decelerator at my org: 0.5x commission if you’re below 80%. Once you hit 80%, you get the 1x on the full amount.
Accelerators also. Once you hit certain points over target you get higher multipliers on the full amount.
Ultimately, it all comes down to whether the targets are attainable. My company, this is ok. Targets are attainable and the multipliers for overachieving are good, so I’m happy with the decelerator trade off.
However, there are def plenty of scenarios where this same commission structure would absolutely suck (think Series A company where nobody hits consistently, so basically everyone just gets shit commission).
Accelerators also. Once you hit certain points over target you get higher multipliers on the full amount.
Ultimately, it all comes down to whether the targets are attainable. My company, this is ok. Targets are attainable and the multipliers for overachieving are good, so I’m happy with the decelerator trade off.
However, there are def plenty of scenarios where this same commission structure would absolutely suck (think Series A company where nobody hits consistently, so basically everyone just gets shit commission).
used to have decels. Here's the thing, I'm fine with decelerators if the accelerators to the plan are equivalent on the opposite end.
Decelerators over 300% attainment. Still more payout than 0% - 100%, but far less than the ramp up to 300%.
That’s insane. I’d be out ASAP.
He was involved in something that ended his life. I'm glad that the end of life is very long.
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