A business development incentive plan is a type of compensation plan that rewards employees for generating new leads and business. It can be a valuable tool for businesses of all sizes, as it can help to attract and retain top talent, motivate employees, and increase sales.
When creating business development incentive plans, the biggest things to keep in mind are:
- Does your compensation structure promote quality and quantity of leads?
- Are quotas fair and realistic?
- Will the variable pay actually motivate the behaviors you’re looking for?
For first time business development incentive plans, remember that you won’t have a ton of data or have insights into what’s attainbable yet.
So, look at whatever historical performance data you have, as well as industry benchmarks, and start with a quota that seems attainable. You can adjust as more data unfolds in real-time.
Additionally, we have 5 business development and sales development rep compensation plan examples for you to experiment with, including:
- Closed Won Commission
- Qualified Opportunity Bonus
- Demo Completed Bonus
- Qualufied Opportunity Bonus & Closed Won Commission
- Opps Created & Demos Complete Bonus, & Closed Won Commission
For organizations with existing business development incentive plans looking to evaluate the success, check out this blog, How to assess your comp plan’s success.