A demos completed bonus is a business development incentive structure that pays a business development representative (BDR) according to demos completed.
Sometimes companies will pay BDRs based on demos booked, but this plan puts quality control in place on the leads that BDRs pass to reps by only paying them on meetings that actually occur. That quality control extends to the BDRs’ account executive counterparts by reducing the risk of no-shows at scheduled demos.
It’s up to you on what dollar amount you want to reward per demo completed, but below is an example of one to consider.
On-target earnings: $75,000
Base pay: $51,000
Variable pay: $24,000
Annual revenue generated: $600,000
Quarterly revenue: $150,000
Using a sales funnel to help do the math for us, that means to hit those quarterly revenue targets and factoring in average contract value (deal size pf $20,000), qualified opportunity close rates (25%), and qualification rate following demos completed (50%), a BDR would have to send 60 demos that the AE completes quarterly to hit targets.
So, how much should they get paid each demo to meet their OTE of $75,000?
$100 per demo completed.
See the funnel below:
You can use this BDR compensation plan template to plug in your organization’s numbers and find an appropriate bonus rate.