Template · 15 min read

Sales Compensation Structure: The Guide With Role-Based Templates

Everstage Free Beginner

Worked examples with real numbers for an SDR at 70:30, a CS role at 75:25 and a presales engineer at 80:20, each with quota, metric and payout. Copy the shape, change the currency.

  • AEs get a 50:50 base to variable mix; SDRs are usually 70:30.
  • Companies budget 6 to 7 percent of payroll for broad-based variable pay, versus 30 percent plus for executives.
  • Presales engineers can be paid on their own events, for example 500 dollars per qualified POC and 1,000 per won deal.
  • Under US wage law, total commissions still have to average at least minimum wage across hours worked.
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It answers 4 questions

  1. I have been handed a comp plan. How do I work out what I will actually earn?
  2. What do OTE, pay mix, accelerator, draw and clawback actually mean?
  3. I am a founder writing my first sales comp plan. What is the simplest thing that works?
  4. How should SDR, AE and customer success comp actually differ, and why?

Read with it

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  4. Actual rupee bands for junior, mid and senior SDRs in India, the cost comparison against a US hire, and a hiring process built... Wisemonk Article · 16 min read How to Hire B2B SaaS SDRs in India: Cost and Team Guide Wisemonk
  5. The numbers you want when arguing about a plan: median commission around 11.5 percent of ACV, AE pay mix near 53:47, quota to... Everstage Report · 12 min read SaaS Sales Compensation Benchmarks: Trends and Best Practices Everstage
  6. Five design rules worth memorising, including show causality and keep the payout cycle under 60 days, plus a business case... Winning by Design Article · 15 min read Compensation for SaaS Sales Organizations Winning by Design
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