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Handle commission conflicts fairly. Common disputes: 1. Split credit (two reps claim same deal). 2. Deal attribution (inbound vs. outbound claimed). 3. Clawback timing (customer churned, commission retracted). 4. Rule interpretation (new comp plan unclear). Resolution process: 1. Rep submits written...
Manage equity and cap table. Considerations: 1. Founder vesting (4-year, 1-year cliff). 2. Employee stock options (ISOs vs NSOs). 3. Option pool size (10-20% pre-funding). 4. Strike price and 409A valuation. 5. Equity grants for key hires. 6. Dilution from funding rounds. 7. Secondary sales policies...
Set fair, achievable, stretching quotas. Inputs: 1. Company revenue goal. 2. Number of reps. 3. Historical attainment (what % hit quota). 4. Market capacity (total addressable market, saturation). 5. Sales cycle length. 6. Average deal size. Bottom-up calculation: Company needs $10M revenue. Reps: 1...
Design motivation-driving compensation structure. Components: Base salary (40-50% of OTE), Variable commission (50-60% of OTE). Tiers: 0-70% quota: 8% commission. 70-100% quota: 10% commission (standard rate). 100-120% quota: 15% commission (accelerator). 120%+ quota: 20% commission (super accelerat...
