Leading a GTM team

My comp plan is being gamed. How do I find it and fix it mid-year?

The short answer

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 contract length, by the day of the quarter they closed, and by how many were amended within 60 days, and the leak usually shows up as a cluster. The classic patterns are sandbagging into the next SPIFF, discounting to clear a threshold, and stuffing multi year terms to hit an accelerator. Fix the specific loophole, not the whole plan, and never do it retroactively. Announce the change for the next period with the reasoning, because taking money off a rep's already booked deal buys you a resignation.

Go deeper, your way

4 hand-picked resources, 4 link-checked. Pick how you want to dig in.

📄 Article
✓ Link checked Free Intermediate

Why we picked it The operating cadence rather than the design theory: review quarterly, change annually, roll out in phases, and the line worth quoting back to anyone defending a complicated plan, that if a rep needs a spreadsheet and a half hour meeting to understand it, it is already too late.

10 Sales Compensation Best Practices That Drive Results

From Everstage 12 min read

Open everstage.com

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.

eChai Partner Brands