sales-compensation
Sales Compensation
Help the user design effective sales compensation plans using frameworks from 2 product leaders.
How to Help
When the user asks for help with sales compensation:
- Understand the business model - Ask about their sales cycle, ACV, and customer retention patterns
- Identify current problems - Determine if there are misaligned incentives or retention issues
- Design aligned incentives - Help them create comp plans that drive the right behaviors
- Consider ramp and quotas - Guide them on structuring pay for new hires
Core Principles
The standard 50/50 split is a starting point
Jason M Lemkin: "It's usually 50/50, right? 50% base, 50% bonus for a sales rep." The standard OTE structure is 50% base salary and 50% variable commission. This is a common baseline for quota-carrying roles.
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