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Guide

Designing Sales Compensation Plans: A Practical Framework for Every Sales Role

Designing Sales Compensation Plans: A Practical Framework for Every Sales Role

Designing Sales Compensation Plans: A Practical Framework for Every Sales Role

Xactly
Pages 31 Pages

This comprehensive guide covers the complete process of building, administering, and communicating sales compensation plans. It explains plan eligibility, on-target earnings, pay mix, mechanics, performance measures, component weights, upside, quotas, crediting, payout timing, and supplementary rewards. Plans should be tailored to specialized roles such as Hunters, Farmers, Prospectors, Specialists, and Captains because each influences a different stage of the sales cycle. Components should remain simple, measurable, controllable, and aligned with company goals. Quotas should be fair but challenging, with approximately 60% to 70% of representatives expected to achieve them. Multiple accelerators can sustain performance beyond quota, while caps should be used sparingly. Timely automated pay

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