EQSales

VP of Sales

Quarterly vs Yearly Sales Comp Plan

Curious to get your feedback on quarterly sales plans vs yearly comp plans

I've never seen a quarterly plan but have recently come across one

Yearly being you have a quota # and nominal rate which is your quota / variable comp. your accelerators are based on achieving the full years quota. The company then uses quarterly linearity to determine what your quarterly goals are, but ultimately your commissions and accelerators are based off achieving the yearly quota. Typically this means most sellers dont get into accelerators until the second half, but blowing out your yearly number 2-4x pays out more than doing the same in a quarterly number (due to compounding)

The quarterly option is taking your yearly number and applying some kind of quarterly linearity or rate to determine a quarterly number. then your accelerators are based on achieving a quarterly number. this means you have quarterly chances to hit accelerators but start back at 0 each and every quarter vs once per year

Thoughts? have you worked in both? do you see one as more advantageous for a seller over the other?

Quarterly or Yearly Sales Goals/Comp Plan

Attached poll

Quarterly Yearly

*Voting in this poll no longer yields commission.

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13

13 comments

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Pachacuti

Politicker

5

They call me Daddy, Sales Daddy

Yearly quota for me and my team, but squared up Quarterly.

EQSales

Opinionated

0

VP of Sales

thank you!

CuriousFox

WR Officer

3

🦊

Annual 🔥

jefe

Arsonist

1

🍁

100%

This seems overly complicated.

Space_Ghost20

Valued Contributor

2

Account Executive

Last place I worked at it was a yearly goal, but you were paid out each quarter on what you sold that quarter. It was a startup so there wasn't much structure in place. It was more "you should be at x number by end of each quarter" kind of thing. No accelerators or bonuses other than your commission on what you sold. Of course, we didn't even have a comp plan until Q2.

Current company is monthly quota and payout. Bonus if you hit every month the first six months, and another bonus for the second six months.

CPTAmerica

Opinionated

1

President/CRO

I would say it depends on the company stage. The younger the company the shorter term the goals should be as it relates to comp. Gives you flexibility to adjust as needed and helps give early reps hope.

Above all, I would include your reps in the comp conversation wherever possible. Let them have some say.

FinanceEngineer

Politicker

1

Sr Director, sales and partnerships

While I have quarterly goals, it’s all about the annual sales. ARR or MRR, no such thing as QRR.

CRAG112

Valued Contributor

1

Account Executive

Yikes.

Tell me you don't want anyone taking time off without telling me that.

Maximas

Tycoon

1

Senior Sales Executive

Annual 4 sure 2 me!

Kosta_Konfucius

Politicker

0

Sales Rep

Only have worked on a yearly then broke down the number for each quarter/month

pirate

Big Shot

0

🦜☠️ Account Executive

Yearly quota broken down in quarters. When I hit either, I get paid and recognized

Diablo

Politicker

0

Sr. AE

We get paid accelerators on quarterly target but annual number is how the performance is measured.

Sunbunny31

Politicker

0

Sr Sales Executive 🐰

Yearly quota, but I do have quarterly targets AND accelerators for meeting quarterly targets as well, so kind of the best of both.

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