Focus on steady pipeline or focus on cash?

Hi All,


My comp plan is based on a monthly attainment so I get paid on whatever I close that specific month compared to my ACV target for that month. Once you go above, you hit the accelerators. pretty standard, pretty simple.


Now i've spoken with many AE's and some of them say it's best to make sure you always try to get the most out of your month and always aim for that 100% at least. (granted that that is attainable, if more, hit more) because that is what management wants to see. a steady pipeline.


On the other side of the spectrum I have AE's telling me that it's better to overachieve in month 1. make sure you hit all the accelerators, break the record for that month and get a big fat paycheck and then month 2 you close nothing so that you have pipeline in month 3 again to do what you did in month 1.


from a business perspective if the attainment would be identical on average I would hit 100% for the year in both cases. However, if I have 6 killer months in a year and 6 terrible months in a year I would earn roughly 40-50% more in OTE (90k OTE vs 130k OTE).


The question here. do we need to care about what management thinks about predictability of pipeline and hitting the monthly milestones and being a good boy. or should we be playing the commission cashcow game for as long as it lasts?


any redflags from managers experiencing this would be appreciated.


thanks

📈 Closing
☁️ Software Tech
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9
Beans
Big Shot
1
Enterprise Account Executive
What an odd build out.

What's the length of your sales cycle?
MrMoneybags
Big Shot
0
Account Executive
I work SMB for a tool that requires no implementation. so my deals go from <24 hours a few months. average is about 6 weeks I'd say. 

however, the pay structure works from SMB to Enterprise. 
poweredbycaffeine
WR Lieutenant
1
☕️
I would put a massive red flag on your yo-yo performance...and if you have a Sales/RevOps team you better believe they are paying attention to this trend. What happens when they see a trend? They change the comp plan so that it's harder to accelerate your monthly earnings, and they'll outright prevent yo-yo performance by instituting PIPs based on rolling 90/180 performance. 


Sure, gaining the system in the short-term may line your pockets--but what happens when you have 2, 3, 4 bad months because you realize you are not Moses and you cannot control the pipeline performance waves? Seeyuh.
MrMoneybags
Big Shot
0
Account Executive
I've had conversations with our finance team during drinks, so nothing official and they do say say management is very much aware of it, but there's only a few people that are actively doing it. 

there's people that hit 100% OTE and earn more than the top performers hitting 140%-150% per year. So I can definitely see that they would want to stop it or limit it
StringerBell
Politicker
1
Account Executive
I think I have  a very similar comp plan as you. Basically if I don’t hit 80% of monthly quota the deals I did close get paid a lesser rate so it’s kind of shit. Overall I’ve never found sandbagging to get them in a single month works and I’d rather have consistent results if I can. It’s a bit of personal thing because I kind of feel like the sales manager likes the consistent rep even if it’s not always at quota but the sales person probably does lose out more. The only is I hit accelerators for hitting quarterly targets as well so it’s within my interest to sell early in the Q to ideally surpass that target and benefit from it in deals later in the Q.
MrMoneybags
Big Shot
1
Account Executive
Yes, they probably put that 80% in your comp plan to limit you from sandbagging too much. 

We had this in our business dev team where you would not get any comp if you get <50% attainment for the month. 

I do agree that from a mindset and mental health it would be better to focus on the monthly or quarterly target as having a high month followed by a low month could make you bipolar after years.
Blackwargreymon
Politicker
1
MDR
I would put a massive red flag on your yo-yo performance...and if you have a Sales/RevOps team you better believe they are paying attention to this trend. 
Clashingsoulsspell
Politicker
1
ISR
I would put a massive red flag on your yo-yo performance...and if you have a Sales/RevOps team you better believe they are paying attention to this trend.
DungeonsNDemos
Big Shot
0
Rolling 20's all day
Do you focus on short term upside or long term?
MR.StretchISR
Politicker
0
ISR
I would put a massive red flag on your yo-yo performance...and if you have a Sales/RevOps team you better believe they are paying attention to this trend. What happens when they see a trend? They change the comp plan so that it's harder to accelerate your monthly earnings, and they'll outright prevent yo-yo performance by instituting PIPs based on rolling 90/180 performance.
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