The Ultimate Guide to Sales Comp
Modern Sales POwer Hour with Marissa Fuhrer
Stuck on how to choose the right compensation plan for your business model? Need the basics on payout rates and earnings criteria? Unsure if you’re accidentally opening your company to potential lawsuits? From basic comp math to legal compliance, there are a lot of moving parts to get right, and sometimes, you just feel like a cog in the comp plan machine. The Ultimate Guide to Sales Comp will walk you through the steps to move your comp planning process forward faster.
A special thanks to Varicent Concert for sponsoring this event, and to Sanj Sanampudi and Natalie Peled David for participating!
What You’ll learn
The basics of how compensation is supposed to work & what the right plan is for you
Different comp plan structures for different business models
Nailing down the technical words and phrases of compensation planning
The 411 on legal compliance - understanding the basics of compliance and ensuring you're legally sound
Key Takeaways
Commission is a reward based learning feedback loop that develops habits. You need three things: 1. a quota or a target, 2. a scripted set of behaviors of how you're supposed to get to that target, 3. And a reward as you make progress. And if you have all three of those elements to end up building the habits they get you to more repeatable and consistent performance.
The keys to rep visibility: Once you've got a tiered plan, you need to understand where you are relative to the tier in order for them to be meaningful in your performance. This is where having more real time visibility is important because reps are going to try to create that visibility for themselves.
The key to quota setting: If you shorten quota periods, you actually see a higher attainment level. Shorter quota periods give you more opportunities to reset and see if you have unachievable targets, that you can recalibrate quickly. Even for enterprise sellers, those with monthly and quarterly quotas perform far better than enterprise sellers who have annual quotas.