SALES COMP PLAN

Building out a sales comp plan..... Software as a medical device

what metrics do you prefer to use?

Seen 20% of Gross Profit for sales comp (Fixed/Variable) to an OTE = X


Looking forward to feedback

💰 Compensation
🧢 Sales Management
5
DaveGreen
Arsonist
1
Head of Sales
I like a 60/40 split - just make sure it's uncapped.

Also a big fan of heavily rewarding overperformance and a bit of a pain for underperformance. E.g. when you are on target you get 100% payout, under target 75% and above target 125% -> you can even go crazy and reward even more for X% overperformance 

Kiona
Opinionated
1
Head of Business Development
50% salary + 50% commission  =  100% OTE 

($65,000 base + $65,000 commission = $130,000 OTE)  

If you sell 100% to goal you get 100% OTE. 

(Target sales $1,000,000 pays $65,000 in commission.) 

If you sell below the goal you get the % variable that you made towards the target. 

(Sales person only sold $700,000 - they get 70% of $65,000 as their commission.)

If sales go over  - INCENTIVIZE

101%-125% of goal - extra 10% commission or $ bonus
125% - 150% extra 20% commission or $ bonus
+ 150% of goal extra 25% commission or $ bonus

(Sales person sold $1,300,000! -> $65,000 * 1.30% *1.20%) 
commission would be $101,400. 

just an example, but top performers will keep working hard if they get more of an incentive on top of hitting the goal commission.  you keep your fixed cost the same YoY. 
TheSalesPhilosopher
Good Citizen
0
Market Development Rep
Not sure if this helps, but SaaS sales as a SDR currently our comp is: 60K Base 85K OTE
Thesamiam13x
Celebrated Contributor
0
Sales
Obtainable OTE and uncapped commissions 
CuriousFox
WR Officer
0
🦊
60/40 
9

Comp plan nightmares

Discussion
16
5

Looming comp plan change.

Question
4
16
Members only

0% commission comp plans

Question
33