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Comp, quotas and territory
Comp plans, quotas, OTE and accelerators, territory and segment design, in dollars and in rupees.
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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 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...
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...
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...