S
S

Shabadoo

Head of Growth

Contributor
Fire Starter

% to target minimum to receive commission.

I am inheriting a new sales team that gets paid comp on anything they sell regardless of how they habce achieved against target. 

I am going to bring a minimum requirement in order to hit target. I have had times with a 50% or 100% requirement. 

I am curious what y'all have in your comp plans when it comes to a trigger point for commission to get paid out. 
🧠 Advice
🍾 Commission
😜 contracts
15

25 comments

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oldcloser
Arsonist
10
💀
“I’m sorry, you delivered 38 deals for $48M and landed at 99%. You get shit. Try again next year.”

Sounds like a fun meeting.
jefe
Arsonist
5
🍁
Seriously. DO NOT DO THIS.
Accelerators are the way to incentivize performance - this just demoralizes and demotivates.
Shabadoo
Contributor
1
Head of Growth
Thanks @jefe
poweredbycaffeine
WR Lieutenant
4
☕️
80% should be the minimum, and anyone below that over a trailing-90 should be PIP’d. Harsh? Maybe. Necessary? Youbetcha.
Pachacuti
Politicker
4
They call me Daddy, Sales Daddy
You will lose good sales people by implementing a min %. Trust me, I have seen it.
Coffeesforclosers
Notable Contributor
4
Director Sales and Market Development
Dont demoralize, they should absolutely be paid against anything sold. My plan is (just example) Variable is 100k, everything you sell is based on this number so its like % to this 100k. There are accelerators and multi year payouts too based on when you are at 100% etc.
Diablo
Politicker
3
Sr. AE
This cutoff is crazy and very demotivating for sales rep. It’s simple - if I sell something I should get paid for it. You might want to try a tier instead.
Shabadoo
Contributor
2
Head of Growth
@oldcloser what has your minimum typically been?
oldcloser
Arsonist
8
💀
I’ve never sold or managed in that kind of environment, honestly. If a deal gets sold, you’ve got to pay someone to sell it. You could stair step the % with accelerators at and over quota. But the idea of grinding hard all quarter and landing at 70%, only to meet a blank check is just so demotivating.
oldcloser
Arsonist
3
💀
Minimum to play in volume could be a criteria. KPIs could qualify. But a deal should earn a commission.
CuriousFox
WR Officer
4
🦊
💯
1
Retired Sales Professional
🤣😂🤣
Kosta_Konfucius
Politicker
2
ERP Sales
I have heard of a 3PL be 100% your number or nothing, but that’s just I heard.

I worked somewhere where you need to be at 25% YTD or 25 % QTD
Shabadoo
Contributor
1
Head of Growth
Thanks everyone. Appreciate the perspective. I am selling in a SaaS Environment for added context.
J.J.McLure
Politicker
1
Owner at *redacted*
My last job I only received commission on the deals I sold above my quota, but the base salary was much higher than what I have now. Overall I’m happier with a lower base and uncapped commissions on every deal
GDO
Politicker
1
BDM
no minimum as it should be
boredAnti
Tycoon
1
That One Guy
I don't like that at all. just pay me.
SoccerandSales
Big Shot
1
Account Executive
Not sure a minimum is going to be met well by anyone on the team
Phillip_J_Fry
Opinionated
1
Director of Revenue
Wtf is this? Who cares what % they're at. They sold something and generated revenue for the company. Fucking pay them. Like, what even is the point of NOT paying them? To make them feel like shit for not being at quota? If you don't like their quota numbers, that's a different conversation entirely.
Justatitle
Big Shot
1
Account Executive
Cliffs are such garbage, as a rep it’s demotivating and does the opposite of its intended purpose, if I have a cliff in the plan I’m out. Full stop. Wanna put tiers in commission, sure cliff me then you have more problems than solutions
Sunbunny31
Arsonist
0
Sr Sales Executive 🐰
Never worked within that environment. I've always been comped on what I've sold, period. Incentives existed to encourage any specific behavior (multiyear or adding a certain component), but I've been paid for what I've sold.
What are you incentivizing with a punitive plan? Treat sellers poorly, you'll end up with poor sellers.
Shabadoo
Contributor
0
Head of Growth
I’m sending a trend here. Clearly, the consensus is that cliffs or minimums are not the way to go but instead looking at tiered comp or kickers.

Appreciate the feedback
pirate
Big Shot
0
Account Executive
Our quotas are ridiculously high. They are not designed for you to hit every year, maybe every 3 years... That year you will make a lot of money.
0
Retired Sales Professional
Requirements like these in my opinion don't stimulate productivity, but promotes fear of losing a job that the individual work hard to secure.

I've been hearing the psychic mental wars of the interview processes that an individual needs to go through in order to secure a position in the tech industry, only to be fired if they don't make their quotas.

Now they are being asked to except a prerequisite of 50 or 100% requirement in order to start earning for the hard work that they put into closing the deal and generating revenue for a company that will not pay them commission until they hit the prerequisite.

So if the individual hits 49.4 percent of their percentage commission base requirement they are screwed out commission. I'm making this statement only because of the way many tech companies treat their employee.

This, in my opinion doesn't sound correct. A hard working sales person should get paid from every sale that they closes on. Isn't the company generating revenue off of every sale?
Just my thoughts take or leave it. Truly I say all the best with your decision. 👍👍
coletrain
Politicker
0
Account Executive
0% is the minimum.
Otherwise is a recipe for high turnover and demoralization. If you do it, you will lose good people.
Short-term cost savings means long-term churn

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