The number one objective of a sales commission plan is to align company business goals with sales rep behavior.
There are many aspects to consider when you’re evaluating your team and determining what metrics will be best for them moving forward.
The sales compensation plan should be cost-effective and sustainable for the company over the long term.
Truly understanding the mechanics of your sales engine and how your business expands, contracts and churns is critical to build the right compensation model.
Of course, data is critical. Consider hiring technical operations specialist to support Finance and Revenue Ops build efficient data pipelines.
Sales compensation doesn’t exist in a vacuum. Learn how to evaluate if your compensation plan is competitive against the market
Revenue is not all of it. Consider balancing short term (spiffs, commissions) and long term incentives (bonuses, equity, etc...)
A sales compensation plan shouldn't be set in stone. Review and adapt your strategy regularly to always best align sales goals with company objectives.
Are you thinking about changing your compensations plans but aren't sure how to best design it? Talk to us! We do this all day, everyday.