Sales Compensation

Scope

Covers

• Designing compensation plans for revenue roles (typically SDR/BDR, AE, AM/CSM with expansion)
• Setting OTE, base/variable mix, quota, and ramp
• Defining commission mechanics (crediting rules, accelerators, clawbacks, payout timing)
• Aligning incentives with long-term customer value (retention / NRR), not just bookings
• Producing rep-facing plan docs + admin rules so payouts are actually operable

When to use

• “Design a comp plan for our first AEs/SDRs.”
• “What should our OTE and base/variable split be?”
• “Set quotas and a ramp plan for new reps.”
• “Create accelerators + rules so reps don’t game discounting.”
• “Our reps close bad-fit deals that churn—align comp with retention/NRR.”

When NOT to use