Build effective, intentional, and widely understood compensation plans effortlessly with QuotaPath’s flexible plan builder that breaks down complex formulas and reduces confusion.
Sales compensation plans should strike the right balance between cost efficiency and adequately incentivizing desired business outcomes — which can be tricky. QuotaPath combines industry best practices with a compensation plan builder that breaks down formulas into the customizable components of a plan. Set your teams up for success by giving them compensation plans that they will understand from the jump.
Customize plans to fit any commissionable role in your business using our flexible plan builder. Build calculations off of any field in your deal data — meetings booked, deals closed, renewals won — to drive your teams toward their individual goals.
We know every good solution starts with a solid strategy, including your approach to incentive compensation. That’s why we built an extensive library of adjustable comp plan templates based on our learnings from 500+ comp plan consultations. Each plan includes 9 adjustable variables and a real-time modeler.
Want to build your own unique plan? Follow our plan builder to add quotas, rates, tiers, accelerators, bonuses, SPIFs, and other components to drive your teams toward their goals. Get best practices on how to design a plan for a new product or territory with this guide.
QuotaPath’s plan builder breaks down the different ways your team members earn commission into an understandable format. It reduces the guesswork for in-app plan creation and gives reps a clear point of reference when they have questions about why and how much they’re earning. QuotaPath handles the most complex plans:
Once your sales compensation plans are built, use QuotaPath to distribute and collect rep sign off to show that your reps understand how they’re compensated. Quickly add commission policies and agreements and track verifications in QuotaPath. Create more transparency around every commission payment and lean on one system for the entire verification workflow.
According to our Compensation Trends survey, 64% of companies pay out commissions upon the deal closing versus 20% at the time of invoice payment. Whatever your business needs are, QuotaPath’s payouts eligibility feature allows you to set custom payment periods and conditions.
Tracking commissions in spreadsheets was not viable when Botify grew to 150 commissionable roles. Botify chose QuotaPath over Xactly and CaptivateIQ because of the holistic approach to support finance teams, sales leaders, and individual reps. With QuotaPath, the finance team has reduced the time spent calculating commissions by 50% while managing 15 compensation plans for 110 users.
That’s up 17% from 2020. Standardizing plans is the foundation of a strong sales compensation strategy by reducing confusion, misalignment, and the risk of pay inequities.
Run commissions smoothly with our robust integrations. Automatically pull in data and start tracking and forecasting revenue. Data syncs happen in real-time so your team can stay up to date on earnings and performance.
Salesforce commission tracking? We got it. Sync data from Salesforce in real-time to automate commissions.
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Pull in payment details from Stripe to set eligibility rules for commissions payments and manage clawbacks.
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Integrate with Quickbooks to pull in invoice and payment data and set eligibility rules for accurate commissions payments.
Learn MoreThere are three things to consider when building compensation plans. The first is that comp plans should be simple. Make sure they can be explained quickly, and that they don’t involve too many moving parts. The second is that they are logical. You want your comp plans to accomplish the goals your company has set. Lastly, comp plans should be fair. They should be attainable and pay your sales team properly for the work they do.
The three main benefits of sales compensation software include transparency, error reduction, and motivation. Because compensation information is centralized in a platform, everyone involved in the commission process gains a new level of transparency. Automated calculations reduces the risks of human error. And when reps have visibility into their compensation and can trust their payouts will be accurate, they are motivated to sell more.
The departments typically responsible for designing sales compensation plans are sales leadership, revenue operations, and finance. However, the organization responsible for designing sales compensation plans varies as organizations grow. In early organizations, it’s generally sales leadership who designs compensation plans. And in large organizations, this responsibility typically falls to revenue operations teams. No matter who is in charge, it’s important that sales compensation plans are simple, logical, and fair.
Read more about sales compensation strategy in our ebook here.
The simplest commission structure for SaaS sales is a flat commission rate, usually around 10%. But most SaaS commission structures use accelerators to incentivize over-performance.
Some organizations use consistency bonuses that pay a set bonus amount for hitting quota every month or quarter. There’s no exact template for a perfect SaaS commission structure, but here’s more reading about standard commission rates for SaaS sales to further your understanding.
Compensation design plays a big role in motivating sales reps. A good compensation plan should be easy to understand and designed to drive specific behaviors. And, it should pay reps accordingly. Consider adding accelerators and bonuses to motivate your sales representatives to sell more business or specific types of deals.
The most common ways to calculate sales compensation are either using a spreadsheet or with commission tracking software like QuotaPath. For simple compensation plans, many people choose to calculate manually using spreadsheets. This method can work for small sales teams, however, it can become too time-consuming and unfeasible. If your sales team is scaling or you have more complex comp plans, using a tool can help you calculate sales commissions automatically. Then you can add that to a rep’s base salary to calculate their total compensation. Sales compensation software automates calculations, provides transparency, and removes mistakes.
OTE salary is an acronym that stands for on-target earnings. On-target earnings is the amount of money you can expect to earn if you hit 100% of your quota. It can be calculated by adding your base salary and any expected bonuses and/or commissions. Here’s ore reading on OTE salary, plus some examples.
Use QuotaPath to build and manage your sales compensation plans.
