#sales-compensation

Design a motivating sales compensation plan. Components: 1. Base salary (40-60% of OTE). 2. Variable commission (tied to quota attainment). 3. Accelerators (>100% quota achievement). 4. SPIFs for strategic initiatives. 5. Team vs individual targets. Models: straight commission, tiered, revenue vs profit-based. Align with business goals (new logos, expansion, retention). Set achievable quotas (60-80% of reps hit). Pay frequently (monthly). Keep plan simple and transparent. Review annually. Benchmark against industry standards.