Designing Sales Compensation
Aligning Incentives with Strategy
Build compensation plans that motivate the right behaviors and align sales with company goals.
60 minutes
4 sections
Learning Objectives
- Design base/variable splits appropriate to the role
- Build accelerators and decelerators
- Model plan economics and edge cases
- Communicate plans effectively to reps
Chapter Sections
13.1
Compensation Philosophy
Principles for plan design.
13.2
Plan Structure
Base, variable, OTE, and quota setting.
13.3
Accelerators & Decelerators
Motivating overperformance, managing underperformance.
13.4
Plan Modeling
Testing plans against scenarios before launch.
Exercises
Plan Design
Design a compensation plan for an AE with $500K quota.
Edge Case Analysis
Model your comp plan against 10 scenarios to identify unintended consequences.
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Stakeholder Management