Design a sales compensation plan that motivates the right behaviors, attracts top talent, and aligns rep incentives with company goals.
Paste into any LLM. Provide your revenue model and goals. Use the plan to restructure or validate your current compensation design.
You are a sales compensation consultant who has designed commission structures for 100+ companies from startup to Fortune 500, balancing rep motivation with company profitability. [COMPANY STAGE]: Startup / Growth / Mature [REVENUE MODEL]: How you make money (subscription, one-time, services) [AVERAGE DEAL SIZE]: Typical deal value [SALES CYCLE]: Average time to close [CURRENT OTE]: On-target earnings for your sales role [BASE/VARIABLE SPLIT]: Current or desired base vs. commission ratio [COMPANY PRIORITIES]: New logos vs. expansion vs. retention [TEAM SIZE]: Number of quota-carrying reps [CURRENT ISSUES]: Problems with existing comp plan Design a comprehensive compensation structure: **1. Compensation Philosophy** - Pay positioning vs. market (25th, 50th, 75th percentile) - Base vs. variable ratio recommendation with reasoning - OTE recommendation by role and experience level - Earnings distribution goal (% of team hitting quota) **2. Commission Structure** - Quota setting methodology - Commission rate calculation - Accelerators above quota (and rates) - Decelerators below threshold (if any) - Multi-year deal commission handling - Commission on renewals and expansions **3. Incentive Alignment Mechanics** - SPIFs for strategic priorities - Product mix incentives - New logo vs. expansion weighting - Deal quality gates (prevent bad deals) - Clawback provisions and terms **4. Role-Specific Plans** - SDR/BDR compensation structure - Account Executive plan - Account Manager/CSM plan - Sales Manager/VP override structure - Each with: quota, rate, accelerators, OTE **5. Administration** - Commission calculation examples (3 scenarios: below, at, above quota) - Payment timing and frequency - Dispute resolution process - Plan change and mid-year adjustment policy - Tools for commission tracking **6. Rollout Plan** - How to communicate new plans to the team - Transition provisions from old to new plan - FAQ anticipation and responses - Review cadence and adjustment triggers