Playbook
Sales Comp Plan Design
Revenue
7 min read
Principles
- Simple: the rep can compute their commission on a napkin
- 50/50 base/variable for AEs, 70/30 for SDRs, 80/20 for CS
- Accelerators only above 100% quota
- Clawbacks for churn under 6 months
Common failure modes
- Overpaying on the first deal in a new segment
- Underpaying for retention
- Comp plan changes mid-quarter (never do this)
Rollout
Draft → CEO + CFO review → 1:1 with each rep → email confirmation.
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