OldDogNewTricks

Sales guy

Does your current comms plan have a gateway?

I'm currently re-writing our compensation plan so wanting some feedback on how reps are currently earning commission checks

Does your current comms plan have a gateway?

Attached poll

Yes - 50% quota unlocks comms Yes - less than 50% opens comms Wait, what? HELL NO. When I sell i make comms OTHER? (details in comments)

*Voting in this poll no longer yields commission.

💰 Compensation

🧢 Sales Management

💪 Motivation

24 comments

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SaaSam

Politicker

Account Executive

We're in sales. We get paid to sell. If a company tells me that they have a "gateway" to unlocking commission I'm not taking the job. If my current company changes the comp plan to include one, I'm looking for somewhere else to work.

OldDogNewTricks

Opinionated

Sales guy

Cheers @SaaSam - our company has always had gateways previously, until i instituted a no gateway comms structure earlier this year. I'm rejigging part of the model but 100% keen to keep it gateway free. This polls results are exactly what i wanted to see 😁👌

SaaSam

Politicker

Account Executive

You, my friend, are a hero

KendallRoy

Politicker

I'd walk from any job opportunity where I didn't receive compensation for every sale made. If management wants a sales team made up of sub-par candidates that only took the job because they couldn't be hired anywhere else, by all means, implement a gateway.

OldDogNewTricks

Opinionated

Sales guy

That seems to be the overwhelmimg sentiment @TheRealVladimirPutin! Luckily I did away with the gateway earlier this year... and this thread is backing up my intention to never bring the gateway back

CoorsKing

WR Officer

Retired King of the Coors Knights

Is this actually a thing? No chance I would work for an org with a gateway.

jefe

Arsonist

🍁

Definitely a thing. A stupid thing, but a thing nonetheless....

washedD1soccer

Politicker

Regional Sales Manager

I think I understand where you are coming from but I would highly suggest that instead of putting a “gateway” on commissions, further incentivize large over performance. If the company makes a lot more money because a sales rep sees they can make more money through aggressive multipliers, is that truly a bad scenario for the company? I feel like there is a huge emphasis on managing budget allocation for sales commissions without thinking bigger picture. More sales commissions paid out = more revenue for the company overall. This is not mutually exclusive.

OldDogNewTricks

Opinionated

Sales guy

Thanks @washedD1soccer - i agree, over achieving kickers are better motivators.

For the record, i don't plan on bringing a gateway back in (see my other comment, i already removed it last iteration) , i just wanted some back up for my own knowledge in case i get push back from finance

LegacySoftware

Opinionated

Strategic Account Executive

Obviously not an AE now, when I was it was straight up, and linear, as it should be. My current plan is based off Sales Accepted Leads performed by my Global BDR team, and doesn’t engage until 33% to Quarterly goal. It’s aiii-iite because my salary is pretty fat.

ChicagoCloser1717

Politicker

New Business Development Representative

Even if its less commission dont do a gateway but start with commission off the bat whenever they close a deal. It will keep the reps opened it.

OldDogNewTricks

Opinionated

Sales guy

Yep this is how i have it structured now, a small percentage from 0-50%, before it picks up considerably

I agree its good to just get a taste as soon as you close that first deal. Much more motivating.

ChicagoCloser1717

Politicker

New Business Development Representative

Yeah that’s different give some skin in the game to start

CuriousFox

WR Officer

🦊

Wtf is this sorcery?

FeedTheKids

Politicker

Solutions Consultant

*** This is probably the most useful post I've seen in a few weeks on this app.
@OldDogNewTricks is trying to better his business and got quality feedback. Not just a "what's your favorite snack on a rainy Tuesday" poll ***

My company has a gateway, but it's low enough that all reps should always be in the money. (gateway is halfway to quota)

We have cash kickers after certain thresholds for MRR and cash closed.

I see alot of the ppl saying "I need to get paid for my sales" might not understand, but gateway isn't horrible as long as reps are making good money.

OldDogNewTricks

Opinionated

Sales guy

Thanks @FeedTheKids for the props! Its been super useful indeed.

For the record, 90% of the compensation plans I've sold within over a 15+ year career have had a 50% gateway. I like the idea of a little taste, a small percentage of comms kicking in from sale #1 of the month/quarter, to give reps a little extra motivation early in the period. Especially for a brand new to a particular market, when the NOs are gonna heavily outweigh the YESs. Any little motivation levers i can add at this crucial stage is important.

This poll gives me some data/confidence to back up this model should finance push back this time (new CFO, last guy was sales oriented so he let it through)

jefe

Arsonist

🍁

My first job was like this, it can be SO demotivating to be a single deal away and get NOTHING for any of them.

Ridiculous IMO

Blackwargreymon

Politicker

MDR

We're in sales. We get paid to sell. If a company tells me that they have a "gateway" to unlocking commission I'm not taking the job.

Error32

Politicker

ISR

60/40 is perfect making the commish worth the your while, while not leaving you to beg on the streets.

LordBusiness

Politicker

-3

Chief Revenue Officer

Every plan (that has a base salary) should have a minimum threshold to unlock commission.

Biznasty

Opinionated

Lead Business Development Manager

I disagree. A sales rep is an employee and deserves a base pay for the tasks they do that don’t make them money like updating the CRM, attending team meetings, etc. we already know our prospects. If the company wants to benefit from our skill and knowledge and get reports/meetings internally they have to pay.

LordBusiness

Politicker

-1

Chief Revenue Officer

If a sales rep doesn't think "tasks" they "don't like" don't make them money, then they are likely doing those tasks wrong. If you don't "update the CRM" how in heaven's do you keep track of your day to day and client engagements? (this a different conversation altogether). My #1 rep says this all the time to me and it always resonates. "Why do so many people on our sales team think hitting quota is a goal - its the JOB" - and to that point, why should a company pay additional compensation to someone who's not doing the job at even 50% of the required threshold? My first comp plan, commission didn't "hit" until 90% -- you read that right.

Biznasty

Opinionated

Lead Business Development Manager

I didn’t say I don’t like the tasks. I said they do not produce commission. You can argue the CRM will help you mind your details and that’s if the CRM is worth a shit. Most companies don’t have a decent CRM as you can see from the posts in here. I hit quota and some. I work closest to my dollar always and sometimes I don’t have time to do the things that do not yield commission. And yeah, I agree. Hitting quota is your job but if the company wants a download of your brain and relationships with decision makers and wants you to share your skills with the team, you’re a sucker if you don’t make them pay.

OldDogNewTricks

Opinionated

Sales guy

hey @LordBusiness i completely get the broader business case for a gateway; thats the model that 90% of my selling career has been inside. what are your thoughts on just a little extra early... a small percentage for the first sales up to 50%, to give your hunters a taste of blood from their first sale in the new month/quarter? i've found since instituting this earlier this year, it helps the team get some momentum early on.

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OldDogNewTricks

Does your current comms plan have a gateway?

Does your current comms plan have a gateway?

24 comments

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