Designing and managing sales compensation plans is probably the most critical and time consuming project for B2B executives. Our goal is to bridge the knowledge gap and provide everyone with best practices, industry trends and feedback on Sales Compensation.
As the founder of a Sales Compensation software company, I often receive messages from people who need to figure out the right sales compensation plan for their business.
It’s not an easy topic, and often sales compensation represents one of the most important expenses for a company. Also, mishiring or designing a sales compensation plan that doesn’t really motivate your team can often really harm your growth and set you months back.
Questions that I often hear:
- When should I hire my first sales reps? What is the right profile for a seed stage company?
- What is the right compensation plan for the first 3 sales reps that join my company?
- What is a fair quota? How can I keep the plan simple yet tailored to the objectives and the context of my company?
- When should I hire a first VP Sales? Should a VP sales own an individual quota or be only focused on management and hiring?
- How do non-recoverable draws work? What about New Hire guarantees?
- How do you design quota ramping?
- Topown quota setting versus bottom-up, what is right for me? What are the pitfalls of each method?
- Should I pay commission on bookings or on invoice collection?
- How should I compensate an AE during maternity leave?
- How do I build a sales culture that empowers and inspires individuals?
I could go on and on and on. There are so many questions and things to figure out in order to get sales compensation right.
Also, sales compensation is a very cross functional topic and often, designing sales comp requires feedback from HR, sales leadership, operations, finance, and the execs. The collaboration necessary to design sales compensation plans makes it even harder.
There are already many communities if you are working in finance, sales ops, product, engineering, etc.. But all these communities are vertical, i.e. meant for specific teams. There are no “horizontal communities” focused on a topic, i.e. sales compensation, and open to everyone, from HR, to finance, Sales ops to SDRs, etc..
That’s why we decided to create Sales Compensation Hub. It’s a free, discourse powered community. You can join by signing up to salescompensationhub.com
I’d love to see you there! We are a group of people passionate about sales compensation and eager to help companies inspire their teams with great comp plans!
Jean
Sales Compensation Hub