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:

1. Understand the business model - Ask about their sales cycle, ACV, and customer retention patterns
2. Identify current problems - Determine if there are misaligned incentives or retention issues
3. Design aligned incentives - Help them create comp plans that drive the right behaviors
4. 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.