Doing the work

Do SPIFFs work, or do they just teach the team to wait for the next one?

The short answer

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 end push. Run one a quarter with a clear metric, live visibility of standings, and payment within days, and you get real lift. Run them constantly and reps start sandbagging deals into the next one, which is exactly the behaviour you were trying to avoid. Two design rules matter more than the amount: never winner takes all, because the other 90 percent check out immediately, and budget it as a percentage of the expected revenue lift so it does not quietly become a permanent line item.

Go deeper, your way

3 hand-picked resources, 3 link-checked. Pick how you want to dig in.

The same ground, at another level

How comp, quotas and territory reads from a different seat.

People also ask

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... Breaking into GTM 4 resources → 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... Breaking into GTM 3 resources → 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... Breaking into GTM 4 resources → 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... Breaking into GTM 4 resources → 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... Doing the work 4 resources → 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... Doing the work 4 resources →

Also in Starting Up

The same ground, over in Co-founders, team & legal, our Starting Up track.

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