Is a Commission CAP in Sales something good?

Hey! in My Company the Commission in Sales is Caped at 200 %. that mean, if i sell 5 times my target, i only get comission for 200%. What do u think about it?

CAP

Attached poll
*Voting in this poll no longer yields commission.
๐Ÿคทโ€โ™‚ Poll
๐Ÿ“Š Metrics
22
antiASKHOLE
Tycoon
8
Bravado's Resident Asshole
They get you with Uncapped and then they cap you in fine print. This is a terrible way for a company to treat their money makers.
SaaSam
Politicker
1
Account Executive
Came here to say exactly that. You get companies that claim they have uncapped commission and then all of a sudden when you're expecting a larger than life payout there's fine print that can be exploited by the org and effectively caps your commission.
TheHypnotist
Executive
0
Sales Manager
sue their asses.
ThatNewAE
Big Shot
4
Account Executive - Mid enterprise
Not a fan of comm cap. Itโ€™s unfair, not that motivating as well.
mazee1406
Opinionated
1
Senior Inside Sales
i think the same!
Corpslovechild
Politicker
4
Inbound Sales Manager
Looks like the team will bequiet quitting.
CuriousFox
WR Officer
1
๐ŸฆŠ
It's about boundaries so I support it.
jefe
Arsonist
4
๐Ÿ
Foolish and demotivating move, IMO.
Sunbunny31
Politicker
2
Sr Sales Executive ๐Ÿฐ
Shortsighted, if they're managing monthly pipeline, as it sounds that they are. They're incenting a certain kind of behavior that might not be desirable from a company standpoint, but completely understandable from a rep standpoint.
jefe
Arsonist
4
๐Ÿ
Absolutely. You need to encourage what you actually want to happen. They're doing the opposite.
Sunbunny31
Politicker
2
Sr Sales Executive ๐Ÿฐ
Unless this is how they think they're going to "manage" for linearity, eg not onboarding too many customers all at once. I don't think this is the case, mind you. I've found many suspect comp plans just missed some loopholes or weren't thoroughly thought out and tested.
jefe
Arsonist
2
๐Ÿ
Never considered that perspective, but I think it's usually just because they're poorly thought out.
Sunbunny31
Politicker
2
Sr Sales Executive ๐Ÿฐ
I have little doubt it's just to avoid payout without thinking through what a rep is going to do, which is always to maximize the earnings.
SoccerandSales
Big Shot
2
Account Executive
Sandbagging will be your friend. Seems like a lot of companies now want โ€œgood not greatโ€ reps
mazee1406
Opinionated
1
Senior Inside Sales
totally true! some moth i hold back 50% on my deals, wenn the customer dont need the solution fast
SoccerandSales
Big Shot
1
Account Executive
The lesson I am learning fast is that you have to watch out for yourself because no one else will
NotCreativeEnough
Big Shot
2
Professional Day Ruiner
caps are a great way to get your good reps to only work hard the year
mazee1406
Opinionated
0
Senior Inside Sales
thats ironic, right?
Sunbunny31
Politicker
2
Sr Sales Executive ๐Ÿฐ
It incentivizes the wrong behavior. As a rep, why wouldn't I hold a deal a little extra so I get paid the full amount on it when it closes?
Thatsalesdude
Politicker
2
Account Executive
Whoever said "its good" is an undercover sales manager or CEO. You narc.
SaaSam
Politicker
2
Account Executive
Sounds like you need a Lloyd Grossman to help you out.
Corpslovechild
Politicker
1
Inbound Sales Manager
Why would anyone think this is good?
mazee1406
Opinionated
0
Senior Inside Sales
Because my company didnt change it in 5 years
Kosta_Konfucius
Politicker
1
Sales Rep
I feel like all say uncap, by they limit you % a great deal once you get over 250%
punishedlad
Tycoon
1
Regional Partnership Manager
It is, indeed, not good. Great way to demotivate and create a middling sales team.

Unless, of course, your salary is bangin'.
TennisandSales
Politicker
1
Head Of Sales
i mean it sounds pretty terrible. how many times have ppl hit 200% of plan?
mazee1406
Opinionated
1
Senior Inside Sales
every month a t least 3-4 Agents hit the 200%
TennisandSales
Politicker
0
Head Of Sales
then this plan totally sucks hahah and its for sure in place to keep costs down which is mind blowing.
Juancallclose
Catalyst
1
Director
bullshit. You cap me, I'm gonna sandbag deals right before I quit
SADNESSLieutenant
Politicker
1
Officer of โ™ฅ๏ธ
I think it's good when salespeople are compensated for overexceeding quota because then they have incentive to work (I know a crazy concept LMAOO)
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
I have NEVER seen commission caps go well for anyone.
ChumpChange
Politicker
1
Channel Manager
One takeaway to be mindful of. If you're ever capped because you landed a whale. Make sure you track the "additional unpaid revenue" and use that as leverage during your performance reviews. I had two of mine capped and I used it to leverage a higher base which ended up being a 15% raise. The lesson here is don't be pissed and quiet when it happens. Be galvanized and empowered to fight for your self-worth! Never be the victim in your story.
CryptoPoor
Opinionated
1
Account Executive
Makes me think of that episode from The Office where Jim just goofs around. That's exactly what a capped commission will do, unmotivate sales rep to over-achieve
TheHypnotist
Executive
0
Sales Manager
tell you target you don't give a shit if they buy or not (after you have sold to them 5 times). See how that goes down with management.
CadenceCombat
Tycoon
0
Account Executive
Why would this be good?
mazee1406
Opinionated
0
Senior Inside Sales
I dont know, aksing this myself
-6

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