Build the team
Comp, quotas and territory
Comp plans, quotas, OTE and accelerators, territory and segment design, in dollars and in rupees.
I have been handed a comp plan. How do I work out what I will actually earn?
Ignore the OTE headline and find four things: the base, the quota, what percentage of a deal you get, and when you get paid. Multiply your realisti...
What do OTE, pay mix, accelerator, draw and clawback actually mean?
OTE is base plus variable if you hit exactly 100 percent of quota, nothing more. Pay mix is how that splits: closing roles are usually around 50:50...
I am a founder writing my first sales comp plan. What is the simplest thing that works?
One page, one number, one rate. Base plus variable at roughly 50:50 for a closer, a single quota on new ARR, a flat commission rate, and an acceler...
What is a fair quota for my first rep when we have no history to go on?
Start from cost, not from ambition. The common anchors are quota at four to six times OTE, or David Sacks's rule of 10 where quota is about ten tim...
How do I set quotas that most of the team can actually hit?
Set them top down and bottom up, and treat the gap between the two as information rather than a negotiation. Top down is the revenue target divided...
How should SDR, AE and customer success comp actually differ, and why?
Pay variable in proportion to how much of the outcome the person controls. An AE controls the close, so around 50:50 with a real accelerator. An SD...
Do SPIFFs work, or do they just teach the team to wait for the next one?
Both, depending on how often you run them. A SPIFF is a tactical lever for a specific short window: a product launch, a stalled segment, a quarter ...
How do I split territories and segments without starting a civil war?
The test of a good split is not that it is equal, it is that every rep has an equal shot at quota. Balance on potential and workload, so a patch of...
How do I build a comp plan that pays for the strategy we actually have this year?
Write the strategy in one sentence first, then make the plan pay for that sentence and nothing else. If this is a new logo year, pay heavily on new...
What does sales comp look like for an India based team selling into the US?
The salary is Indian, the quota is not. A rep in Bengaluru selling US ACV costs a fraction of a US hire but is working against US deal sizes, so th...
My comp plan is being gamed. How do I find it and fix it mid-year?
Gaming is a design bug, not a character flaw, so go looking for it in the data before you go looking for it in people. Sort deals by discount, by c...
How much should the whole GTM org cost, and how do I know when we are overspending?
Stop looking at headcount and look at the magic number: net new ARR in a quarter divided by the fully loaded sales and marketing spend of the quart...
What does best-in-class quota attainment actually look like, and what does the shape tell me?
Read the distribution, not the average. Top quartile organisations get 65 to 75 percent of reps at or above quota in a given quarter, the median B2...
How do the best-run comp teams operate the plan through the year, not just design it?
They treat the plan as an operating system with a cadence. Review quarterly, change annually, and never surprise anyone. Every rep can see live att...
How do the best companies pay reps in a hybrid or product-led motion where the product sourced the deal?
They pay the rep and adjust the quota, rather than fighting about attribution. If self serve revenue lands in a rep's account and they had any hand...
How do the best companies handle territory and segment design once there are dozens of reps?
They design territories from data and then defend the design politically. Accounts get scored on multi dimensional signals, size, industry, technog...