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dkokelley | 2 years ago
The good: setting a target comp that is realistic and explained (e.g. "I expect you to hit $200K 4/5 times with this plan.")
The bad: plans with complicated rules (x% up to $Y in sales with a kicker + incentives for certain deal structures) can be demotivating and incentivize the wrong sales behaviors
The ugly: some high-intensity salespeople might thrive on the chaotic and unpredictable nature of comp structures. I don't love the idea of hijacking the "gambling/variable reward" centers of the brain to get what you want out of your people. Be fair and simple.
marcus0x62|2 years ago
The only simpler plan I've ever heard of is just a straight percentage of gross margin, but then the commission management scams move away from the comp plan and into expenses that eat into gross margin...