RevOps is evolving as it rises in popularity, creating trends in 2023 like sales role changes, increased AI tool use, greater customer-centricity, and different organizational structures. For instance, our team is starting to discuss RevOps shifting from one department to a more distributed team with an ops person in marketing, sales, and customer success.

These trends will likely influence which metrics RevOps teams will pay attention to this year, in an effort to inform strategic actions and ensure operational success.

While there are many metrics to keep track of, it is a best practice to select one north star metric (useful in commission management) that’s the most important one for the quarter for your organization. This is essential as it creates alignment across your organization, so everyone pulls together to attain one shared goal.

“Alignment” most needed area of improvement in sales compensation management

Our Compensation Trends study revealed that aligning your organization’s north star metric with your incentive packages is the part of your sales compensation process that needs the most work.

Read More

What metrics are the most impactful for RevOps to track, and how do they translate these numbers into strategic actions? We sourced the top RevOps metrics to track with some guidance from three RevOps leaders.

What are Revenue Operations Metrics

Revenue operations (RevOps) metrics are key performance indicators (KPIs) that measure the efficiency and effectiveness of a company’s revenue-generating processes.

These metrics align sales, marketing, and customer success teams to track performance across the entire customer lifecycle.

Some common RevOps metrics include customer acquisition cost (CAC), customer lifetime value (CLV), lead conversion rates, sales cycle length, and net revenue retention (NRR). Organizations can identify bottlenecks, optimize processes, and ensure sustainable revenue growth by monitoring these metrics.

Why Measuring Revenue Operations is Important 

RevOps metrics are important because they provide a unified view of performance across sales, marketing, and customer success, enabling better alignment and collaboration. They help organizations identify inefficiencies, track progress toward revenue goals, and make data-driven decisions to optimize processes. By focusing on these metrics, companies can improve forecasting, enhance customer experiences, and ensure sustainable revenue growth. Ultimately, RevOps metrics drive accountability and efficiency across the entire revenue engine.

Sales RevOps Metrics

Sales metrics help you measure the performance of your sales and revenue-generating teams. These metrics also help you gauge lead quality generated by marketing.

Top sales RevOps metrics to track include:

Revenue 

The amount of new revenue generated is an essential RevOps metric. Revenue is the amount of proceeds generated from product or service sales. This measurement helps you assess profitability after deducting total expenses.

Forecasted revenue 

Forecasted revenue is the estimated revenue prediction based on the average closing percentage of customers in the pipeline. This metric helps estimate future cash flow.

Customer acquisition cost

Customer acquisition cost (CAC) is the total cost to win a new customer. Tracking this measurement allows you to gauge profitability compared to lifetime customer value (LCV). It’s also useful for assessing the cost efficiencies of the customer acquisition process.

Sales pipeline velocity

Pipeline velocity measures how quickly opportunities move through the stages of a sales process. It can be calculated by taking the total value of closed deals for a specific period divided by the average sales cycle length. This metric helps gauge the performance of the sales team and identify parts of the sales process requiring improvement. Sales pipeline velocity can also help forecast future revenue.

One best practice for managing your metrics came as a suggestion from John Quarles, Co-Founder at Direct Ascent. John suggests looking at real-time funnel data.

“I like to compare actual results versus the operating plan for volume (opportunity creation), velocity (cycle time), and conversion to see how well we are at managing,” said John.

John continued, “I also like to focus on rep attainment, specifically the distribution of attainment, since that tells me how hard it is in the field for the typical seller. Lastly, I want a financial understanding of which GTM motions are most efficient so I can continue directing investment where it has the highest monetization.”

Conversion rate

Conversion rate is the percentage of leads that advance through the sales process to become paying customers. Tracking this metric gives you a picture of the entire sales funnel across all revenue functions to diagnose why leads aren’t converting or where the roadblocks are in the process.

One of the best RevOps metrics best practices from Nicholas Gollop, Founder/RevOps & GTM Strategy Advisor at RevOps On-Demand, suggests using 1-2 KPIs per funnel section.

“This gives me an overview of what’s important and guides the next drill down of KPIs to look into, such as activities, meetings booked, revenue per segment, and attainment,” Nicholas said. “I usually do this by designing a full-funnel conversion report in Excel to identify bottlenecks within the business. I once managed to debunk a theory that the SDRs were doing poor conversions. It was actually the lead quality that was bad, but everything the SDRs were sending through was good and with high chances of closing.”

Customer lifetime value

The customer lifetime value (CLV) is the total profit or revenue a customer spends on your products or services throughout their entire relationship with your business. This metric is important to track to ensure profitability by comparing it with CAC. It also helps you identify your best-fit customers and prospects, reduce customer churn, increase CLV over time, and optimize sales and marketing efforts.

Marketing RevOps Metrics

Marketing metrics help you track campaign performance and provide insights into customer behavior. These measurements help you gauge the success of your marketing strategy to attract and convert qualified leads.

Some marketing RevOps metrics include:

Traffic

Traffic is the volume of website visits from various sources such as search engines, advertisements, third-party sites, email, and social media. This metric also reveals which pages of your site are visited most often and for the longest duration, as well as bounce rates. Tracking these figures collectively and individually allows you to identify which sources are most effective or require improvement.

Sessions

Unlike traffic, sessions capture user interactions with your website during a given visit and show you which pages they move through, for how long, and in what order, and terminate after 30 minutes of inactivity. Tracking this metric helps you gauge the success of your SEO to identify areas for improvement.

Clickthrough Rate

Clickthrough rate (CTR) is the number of clicks to your website or landing page from a specific ad or campaign. It is expressed as a percentage of the times the ad was displayed. For example, if an ad is displayed 100 times and you have 7 clicks, then the CTR would be 7%. Tracking this metric helps you measure the success of your ad copy, keyword selection, and graphics choice.

Session-to-Contact Rate

The session-to-contact rate is the percentage of website visitors that complete a form or take an action. Tracking this metric helps you gauge the effectiveness of your web copy and calls to action and the amount of visitor engagement.

Attributed revenue

Revenue attribution ties marketing activities to revenue to help determine which marketing efforts are most effective along the buyer’s journey. Tracking attributed revenue helps you see which marketing channels or initiatives drive the most sales. This enables you to make informed decisions about how to spend marketing dollars, decrease CAC, and boost profitability.

Customer RevOps Metrics

Customer retention is essential to the long-term growth of your business as acquiring new customers is less profitable than retaining and growing existing customers. So, it’s important to track how well you are serving and supporting existing customers to protect recurring revenue.

Some customer RevOps metrics you should track include:

Revenue Retention

Revenue retention shows you the percentage of recurring revenue from existing customers you are keeping. Tracking this metric helps you determine things like if you are targeting the right customers and how effective your new customer onboarding, service, and support are.

Customer Churn Rate

Customer churn rate is the percentage of customers that cancel or stop paying for your product or service during a specific period. The lower your customer churn rate, the easier it is for you to hit your growth targets, and the more profitable your business will be.

Although churn rates vary by industry, 5.6% is an average benchmark across businesses, according to Recurly Research. Tracking this metric helps you gauge the overall effectiveness of your customer service and support functions.

Renewals, upgrades, and cross-sells

Renewals, upgrades, and cross-sells are measurements of customer loyalty. The more customers that repurchase, upgrade their existing purchasing with your business or expand their engagement with your company by adding more users or features, the better.

This is another way of measuring customer retention and growth. When these numbers are up, you are protecting and growing your recurring revenue. This reduces the pressure for new customer acquisition.

Net Promoter Score

Net Promoter Score (NPS) measures customer satisfaction. This feedback is typically gathered through a survey asking customers to rate their experience following an interaction with your business. This score is an aggregate measure of overall customer experience and a predictor of customer loyalty.

Time to Value

Time to Value (TTV) is how long it takes from the time of purchase for a customer to see results from using your product or service. A shorter TTV is important because it improves customer experience, builds trust by delivering on sales promises, and builds customer loyalty. Tracking this metric helps you gauge the effectiveness and efficiency of your customer onboarding and implementation processes.

Consumption/Usage/Adoption

The consumption, usage, or adoption rate measures the percentage of active customers versus the total number of customers. This metric shows you how actively customers are engaged with your products or services after they sign up. This helps you gauge product success and influences lifetime value, customer loyalty, and company revenue. A low product adoption rate can be a predictor of customer churn.

One additional best practice as to how to manage your metrics came at the suggestion of Seth London, Senior Director of Revenue Operations at Meltwater. Seth suggests building a go-to-market scorecard that spans all your commercial teams as follows:

“For the executive level, highlight the top 2-5 metrics per commercial team, and at the business unit level, go deeper, possibly using a dozen metrics for organizations like marketing. This gives you a platform to craft the high-level narrative for the executive leadership team and operationally with the business unit leaders.” 

Revenue Metrics Dashboard Examples

A RevOps metrics dashboard is a centralized tool that visualizes key performance indicators (KPIs) to help teams monitor and optimize revenue processes. Here are some examples of dashboards and the metrics they might include:

1. Revenue Growth Dashboard

• Total Revenue: Monthly, quarterly, and yearly revenue.
• Revenue by Channel: Breakdown of revenue by sales, marketing, or partnerships.
• Customer Lifetime Value (CLV): Average revenue generated per customer over their lifecycle.
• Net Revenue Retention (NRR): Percentage of retained revenue after upsells, renewals, and churn.

2. Sales Performance Dashboard

• Quota Attainment: Percentage of sales reps meeting or exceeding their quotas.
• Win Rate: Percentage of deals closed out of total opportunities.
• Sales Cycle Length: Average time to close a deal.
• Pipeline Value: Total value of deals in the sales pipeline.

3. Marketing Efficiency Dashboard

• Lead Conversion Rates: Percentage of leads converting to opportunities or customers.
• Customer Acquisition Cost (CAC): Total cost of acquiring a customer.
• Marketing Qualified Leads (MQLs): Volume of leads meeting marketing-defined criteria.
• Return on Marketing Investment (ROMI): Revenue generated per dollar spent on marketing.

4. Customer Success Dashboard

• Customer Retention Rate: Percentage of customers retained over a period.
• Churn Rate: Percentage of customers lost during a specific timeframe.
• Expansion Revenue: Revenue gained through upsells or cross-sells.
• Net Promoter Score (NPS): Customer satisfaction and likelihood to recommend.

5. Forecasting and Predictive Dashboard

• Revenue Forecast: Predicted revenue for upcoming months or quarters.
• Deal Probability: Likelihood of deals closing based on historical data.
• Pipeline Velocity: Speed at which deals move through the sales process.
• Goal Tracking: Progress toward revenue and team-specific goals.

These dashboards can be built using tools like HubSpot, Salesforce, Tableau, or Looker, providing real-time insights for RevOps leaders to make data-driven decisions.

Start Tracking Your Revenue Operations

Identifying and monitoring the metrics that will best help you achieve your business goals is essential to business success. Consistently tracking the right metrics allows you to adjust your strategies accordingly for continuous improvement.

While there are many metrics to track, it’s best to identify one north star metric for all revenue units to focus on each quarter. This creates better team alignment and allows a cohesive effort toward attaining a shared goal. QuotaPath can guide comp plan designs that support the main metric and track, forecast, and report on attainment, earnings, and compensation plan performance and efficiency metrics. Schedule time with our team to learn more.

FAQs

What are RevOps KPIs?

RevOps KPIs are measurable indicators that track the performance and efficiency of revenue-generating processes across sales, marketing, and customer success. These KPIs, such as customer acquisition cost (CAC), customer lifetime value (CLV), net revenue retention (NRR), and sales cycle length, help organizations align teams, optimize workflows, and drive revenue growth. By focusing on these metrics, companies can make data-driven decisions to improve their overall revenue strategy.

How can MRR and ARR be increased?

MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) can be increased by acquiring new customers, upselling or cross-selling to existing customers, and reducing churn rates. Improving product value, expanding into new markets, and offering tiered pricing or add-ons can also drive revenue growth. Additionally, optimizing customer success efforts and enhancing the onboarding experience help retain customers and encourage long-term commitments.

How to forecast revenue accurately?

To forecast revenue accurately, leverage historical data, analyze sales trends, and account for seasonality or market conditions. Use tools like CRM systems to track pipeline stages, deal probabilities, and sales velocity for predictive insights. Regularly update forecasts based on real-time data and involve cross-functional teams to ensure alignment and accuracy.

CLV vs CAC ratio

The CLV (Customer Lifetime Value) vs. CAC (Customer Acquisition Cost) ratio measures the profitability of acquiring customers by comparing the revenue a customer generates over their lifetime to the cost of acquiring them. A healthy ratio, typically 3:1 or higher, indicates efficient customer acquisition and strong long-term profitability. Monitoring and optimizing this ratio helps businesses balance growth and sustainability.

While women comprise over half of the workforce, only 30% hold sales positions, with most filling customer service or account management roles, according to a survey by Zippia.

Fewer women climb the ladder to become sales leaders. 

This gender disparity is often attributed to societal biases, a lack of female role models, and limited access to resources. 

But it’s time to change the narrative.

This curated list of 15 of the best sales books, compiled with the help of the incredible women in our Women in Sales community, which we’re a proud partner of, celebrates the voices and experiences of successful female sales leaders and authors. These books offer practical advice, actionable strategies, and inspiring stories to help you break down barriers and achieve your sales goals.

Whether you’re a seasoned sales professional or just starting your career, read the following books on sales for valuable insights that can help you:

• Develop your sales skills and confidence: Learn from the experiences of successful women in sales and discover proven tactics that work.
• Overcome challenges and stereotypes: Equip yourself with the knowledge and tools to navigate the unique obstacles women face in the sales world.
• Find inspiration and motivation: Connect with inspiring stories of resilience, perseverance, and success.
• Build a strong brand, network, and community: Discover valuable resources and connect with other women in sales who understand your journey.

No matter your experience level or background, this “best books on sales” collection has something for everyone. So, grab a book and a hot beverage, settle in, and prepare to be empowered by the wisdom and experience of these talented women.

Top Sales Books by Women Authors

1. Buyer First by Carole Mahoney

About the Book: Stuck in a sales rut? “Buyer First” is your secret weapon. Forget the endless hacks and gimmicks. This book goes deeper, tackling the root cause of sales struggles: your mindset. Discover how to shift your perspective, prioritize collaboration, and watch your business soar.

About Carole: Carole Mahoney, the “Sales Therapist” of Harvard Business School, empowers entrepreneurial MBA students to unlock their sales superpowers. Recognized as a top influencer, coach, and leader, she guides future business leaders through the mental hurdles of sales and into thriving careers.

Read Buyer First

2. Go for No by Andrea Waltz

About the Book: Ever heard a “no” that felt like a punch in the gut? You’re not alone. But what if “no” isn’t the enemy? What if it’s actually the key to unlocking your biggest wins? “Go for No” is your guide to rethinking rejection, bouncing back with resilience, and turning “no” into a resounding “yes” for your career.

About Andrea: Andrea Waltz co-authored this book alongside Richard Fenton. Andrea, a member of Women Sales Pros, was named one of the “25 Sales Experts You Should Follow On Twitter” by Hubspot and “25 Sales Influencers to Follow on Twitter” by Salesforce and Live Hive. She’s also listed in the “Top 5 Female Sales Experts To Follow For Tips on Increasing Sales Productivity” by Marketcircle and “51 Top Sales Influencers You Should Follow On Twitter Immediately” by ringDNA.

Read Go for No

3. SNAP Selling by Jill Konrath

About the Book: “SNAP Selling” equips you with fresh sales strategies to captivate today’s busiest prospects. Uncover the hidden criteria they use to judge you, learn to navigate their tight schedules, and keep the deal moving forward. Master “SNAP Selling” and turn fleeting attention into lasting connections (and closed deals).

About Jill: For 20 years, Jill Konrath has been the voice shaping the future of sales. She’s a sales oracle with a loyal following of over 450,000 on LinkedIn and 100,000+ weekly newsletter readers. Featured in “The Story of Sales,” celebrated by Salesforce as a 21st-century icon, and trusted by high-growth companies, Jill’s impact is undeniable. Her four bestselling, award-winning books testify to her dedication to solving today’s toughest sales challenges.

Read SNAP Selling

4. The Sales Leader’s Problem Solver: Practical Solutions to Conquer Management Mess-ups, Handle Difficult Sales Reps, and Make the Most of Every Opportunity by Suzanne Paling

About the Book: Skip the sales management training limbo. This book is your 24/7 coach, offering battle-tested solutions for every dilemma a sales leader faces. Forget “no” to your development; grab this practical guide and unlock your leadership potential.

About Suzanne: Sales management guru Suzanne Paling boasts 25+ years of helping companies soar. Her consulting and coaching have boosted performance for 55+ firms across diverse industries, from manufacturing to software. Recognized as a top blogger and author of two award-winning books, Suzanne is your go-to for sales leadership success.

Read The Sales Leader’s Problem Solver

5. Crushing Quota: Proven Sales Coaching Tactics for Breakthrough Performance by Jason Jordan and Michelle Vazzana

About the Book: Ditch the cookie-cutter coaching. “Crushing Quota” redefines sales coaching with its groundbreaking approach. Backed by rigorous research and tailored to your specific needs, it unlocks the full potential of your team, making it the ultimate resource for sales leaders in any industry.

About Michelle: Michelle Vazzana is the co-founder and Chief Strategy Officer at VantagePoint Performance, a sales performance company offering diagnostic-based training and consultations rooted in academic-led, agile sales research. In addition to “Crushing Quota,” Michelle co-authored “Cracking the Sales Management Code: The Secrets to Measures and Managing Sales Performance.” 

Read Crushing Quota

6. Radical Candor by Kim Scott

About the Book: “Radical Candor” is about giving and receiving feedback in a kind and direct way. It argues that the best way to build strong relationships and improve performance is to be honest with each other, even when it’s complicated.

About Kim: Kim Scott empowers leaders to build thriving teams with straight talk and respect. The author served as a CEO coach at Dropbox, Twitter, Qualtrics, and other large tech companies. She also served as faculty at Apple University and led AdSense YouTube, and DoubleClick teams at Google.

Read Radical Candor

7. Women Don‘t Ask by Linda Babcock and Sara Laschever

About the Book: Named a Forbes Magazine “The 75 Smartest Books We Know,” “Women Don’t Ask” aims to unlock the power of negotiation for women. Backed by research and real-world stories, it empowers women to ask — and organizations to embrace the ask.

About Linda and Sara: These two have teamed up on this book and “Ask for It! How Women Can Use the Power of Negotiation to Get What They Really Want.”

Sara, a founding faculty member of the Carnegie Mellon Leadership and Negotiation Academy for Women, has written extensively about women in business, with publications like The New York Times and The Harvard Business Review featuring her work.

Linda, former dean at Carnegie Mellon’s Heinz College and current James M. Walton Professor of Economics, also founded and is the faculty director of faculty director of the Program for Research and Outreach on Gender Equity in Society.

Read Women Don‘t Ask

8. Powerful Women in Partnerships by Partnership Leaders (eBook available)

About the Book: Shattering ceilings and forging alliances, these women in tech redefine partnership success. This book celebrates their journeys, explores the power of mentorship, and offers invaluable advice for navigating the industry’s future.

About Partnership Leaders: Partnership Leaders is an exclusive professional community for those who work in Partnerships, Channels, Alliances, Business Development, and Ecosystems worldwide.

Read Powerful Women in Partnerships

9. Live it, Love It, Sell It: How to Win at Sales with the Art of Human Conversation by Jules White

About the Book: Reading this book will reveal how everyday skills translate directly into powerful sales tools. You’ll discover your innate strengths and learn to leverage them for success. By understanding your motivations and aligning them with your ideal client’s needs, selling becomes a natural, fulfilling process.

About Jules: Jules boasts more than 30 years of selling experience and earned an investment from Peter Jones after successfully pitching him on “Dragon’s Den” for her business, Truly Madly Baby.

Read Live it, Love It, Sell It

10. Go Big or Go Home by Diana Kander

About the Book: Underdogs closing impossible deals? Forget logic; tap emotions. This book cracks the code of rainmakers, showing you how to forge gut-level connections that make clients say, “This is it.” No fancy slides, just pure emotional resonance. Your blueprint for winning hearts and deals.

About Diana: A keynote speaker, New York Times bestselling author, and serial entrepreneur, Diana has launched and sold millions of dollars worth of products and services throughout her career. 

Read Go Big or Go Home

11. She Sells: Attract, Promote, and Retain Great Women in B2B Sales by Lori Richardson

About the Book: The future of B2B sales is diverse. Will your organization embrace it or fall behind? For decades, Lori Richardson has seen the potential of underrepresented talent. This book guides unlocking it, building a more robust sales team, and dominating the market. Don’t just sell; lead the change.

About Lori: If you’re a woman in sales, you’ve likely heard of Lori. The sales expert and top LinkedIn and Salesforce sales thought leader launched Women Sales Pros, founded The She Sells Summit and hosts the award-winning podcast “Conversations with Women in Sales.”

Read She Sells

12. Beat the Bots by Anita Nielsen

About the Book: Described as a “love letter to sales professionals,” this book aims to remind B2B sales pros to emphasize what makes them human (empathy, compassion, relationships, understanding emotions) in a world where bots are beginning to replace roles.

About Anita: With more than 20 years of experience in B2B sales, enablement, and support, Anita is a sales consultant and performance coach who works with senior sales leaders to foster high-performing revenue teams. 

Read Beat the Bots

13. LinkedIn for Personal Branding: The Ultimate Guide by Sandra Long

About the Book: Learn how to best position yourself on LinkedIn based on real-life examples and including best practices for each profile section. Make yourself more searchable and uncover ways to measure your LinkedIn reach. 

About Sandra: Sandra has nearly 30 years of B2B sales and leadership experience and founded Post Road Consulting to help companies make the most out of LinkedIn for sales and recruiting. She also coaches job seekers and professionals looking to better their LinkedIn presence. 

Read Beat the Bots

14. Naked Sales: How Design Thinking Reveals Customer Motives and Drives Revenue by Ashley Welch and Justin Jones

About the Book: Learn how to create deeper human relationships with your prospects and grow your pipeline (and deal size), all while reducing the time it takes to schedule your first call. It is a quick read that others have described as “without the ego” that comes with most sales books. 

About Ashley: Ashley Welch co-founded Somersault Innovation, a Design Thinking consulting firm offering a unique sales development approach. Before Somersault Innovation, Ashley spent 20 years as a leading sales professional for a leadership development company.

Read Beat the Bots

15. The TOP Sales Leader Playbook: How to Win 5X Deals Repeatedly by Lisa D. Magnuson 

About the Book: This is an excellent read for leaders looking to grow their average contract size who experience talent gaps between the skill levels of their team members and leadership. 

About Lisa: Founder of Top Line Sales, Lisa’s an accomplished author with multiple books, including “The 48-Hour Rule” and “The TOP Seller Advantage: Powerful Strategies to Build Long-term Executive Relationships).  

Read The TOP Sales Leader Playbook

Conclusion

And there you have it. Which book will you start with? 

We’re considering kicking off our new reads with Powerful Women in Partnerships since partner selling will play a huge role this year. 

Still, regardless of which one you pick up first, these 15 publications offer a rich tapestry of knowledge, practical strategies, and inspiring stories from talented female authors. 

Equip yourself with the tools to navigate the sales landscape, overcome challenges, and succeed. 

Remember, your journey matters. Embrace the wisdom and experiences shared within these pages, and let them empower you to reach your full potential. As Maya Angelou said, “Do the best you can until you know better. Then, when you know better, do better.”

So, turn the page, dive into these books, and write your own next.

About QuotaPath

QuotaPath empowers sales leaders to achieve their goals with software solutions to manage their sales compensation processes effectively. From automating commission calculations to providing real-time performance insights, QuotaPath takes the guesswork out of sales management and allows you to focus on what matters most — driving revenue.

Learn more by connecting with our team or signing up for a free trial. 

An effective sales kickoff (SKO) promotes team collaboration, alignment, and motivation. Start this trend as you prepare for a successful sales kickoff with collaborative planning to align the entire go-to-market (GTM) team. 

Cross-departmental collaboration gets all relevant parties on the same page and aligned with business, sales, and marketing goals. This allows key contributors to collectively decide on a relevant theme, plan the event, and create content that all ties back to the theme.

Gather input from the entire group, then leverage Marketing’s expertise for a more cohesive experience with consistent messaging.

Key departments that should be included in this collaborative effort include:

• Sales: Defining sales objectives, goals, and expectations
• Operation: Ensuring the logistical and technical aspects of the event run smoothly
• HR and Training: Addressing team-building activities and skill development sessions
• Marketing: Creating a compelling sales kickoff with engaging and consistent on-brand messaging, strategic guidance, and event creation and promotion expertise

Guide: Master Saleskickoff Excellence

Learn what it takes to strike success at your sales kickoff — including how to get your sales team hyped for the year ahead (and their new comp plans).

View Guide

Why Involve Marketing in Sales Kickoff Planning

It’s essential to involve Marketing in the SKO planning process. Aligning sales and marketing goals ensures a unified message and avoids confusion.

It makes sense to leverage Marketing’s expertise for effective event promotion and engagement. This builds excitement around the SKO event.

Plus, Marketing can enhance the overall branding and messaging strategy for the event through collaboration with the group.

Collaborative Sessions: Marketing’s Role in Sales Kickoff

Let’s explore some sessions to consider when adding Marketing to the SKO agenda.

Option #1 – Branding and Messaging Workshop:

A marketing-led workshop at a Sales Kickoff (SKO) focused on messaging alignment is a valuable opportunity to ensure the entire sales team is on the same page regarding the company’s messaging strategy.

Here’s an outline of what such a workshop might entail:

Title: Crafting a Unified Message: Marketing-Led SKO Workshop

This workshop fosters collaboration between the marketing and sales teams, ensuring a unified and compelling message that resonates with the target audience.

Option #2 – Customer Personas and Target Audience Workshop:

This marketing-led workshop aims to empower the sales team with a deep understanding of their target audience through the creation and utilization of effective customer personas.

Title: Know Your Audience: Crafting Effective Customer Personas for Sales Success

Option #3 – Product Roadmap Insights:

This product marketing-led workshop aims to empower the sales team with a deep understanding of the product roadmap, effective communication strategies, and alignment with upcoming milestones for successful sales outcomes.

Title: A Product Marketing Workshop for Sales Success

Additional workshops to consider

Some additional workshop options you might add to your SKO agenda include:

• Unveiling new products or features: Guidance on how the sales team can effectively communicate these launches with interactive
• Demos and Workshops: Hands-on sessions showcasing marketing tools and resources plus collaboration between marketing and sales on effective demo strategies
• Content Strategy Roundtable: Discussing upcoming marketing campaigns and content strategy and gathering feedback from the sales team for future improvements

Measuring Impact and Feedback

As you plan the SKO, remember to establish metrics to measure the success of your collaborative efforts. For example, you can look at lagging indicators such as deal velocity, deal size, and sales team turnover.

Then gather feedback from both sales and marketing teams for continuous improvement with anonymous surveys or questionnaires. These help you understand what worked well and what to adjust for future events.

Post-Event Integration Strategies

Once the event ends, integrate sales kickoff insights into ongoing marketing campaigns. Then conduct a collaborative debrief with the planning committee to identify successes and areas for improvement of future events.

Conclusion: Collaboratively plan your SKO with marketing

Marketing’s experience makes them valuable members of any SKO planning committee. They are adept at creating unified messaging, possess expertise in effective event promotion and engagement, and are most familiar with branding and messaging strategy.

With so much to contribute, it’s essential to include them on the team. Plus, sales and marketing are better when functioning collaboratively. So, consider SKO planning as a practice and continue working collaboratively moving forward for greater success.

About QuotaPath

QuotaPath is your trusted partner in streamlining and optimizing sales compensation. Whether rolling out new compensation plans at your SKO or enhancing ongoing commission tracking processes, QuotaPath empowers your sales teams, simplifies complexities, and ensures accuracy and transparency in commission payouts.

Schedule time with our team to learn more, or sign up for a free trial. 

Imagine your sales team, energized and united, laser-focused on a single, decisive goal. Picture workshops buzzing with ideas, speakers igniting passion, and activities that drive home key messages like never before. 

This isn’t just another sales kickoff – it’s an SKO delivered under one unified theme to propel your team toward stratospheric success.

Think of a regular sales kickoff like a bag of mixed nuts: a handful of valuable insights, a sprinkle of motivation, and a lot of…well, mixed results. It might satisfy for a moment, but it won’t leave you feeling truly energized or focused.

On the other hand, sales kickoff themes operate like a gourmet chocolate bar: each element crafted with intention and each bite bursting with flavor and purpose. It’s an immersive experience that resonates deeply, leaving your team with a clear direction and an insatiable hunger to achieve. Just as the chocolate market evolves to cater to diverse tastes, a well-designed sales kickoff theme should adapt to the varied preferences and motivations of your sales team.”

So, how do you transform your next SKO from scattered to stellar? 

Mastering Sales Kickoff Excellence

Learn what it takes to strike success at your sales kickoff — including how to get your sales team hyped for the year ahead (and their new comp plans)

Read Guide

By harnessing the power of unifying sales kickoff themes. 

In this blog, we’ll explore the magic of thematic SKOs, unveil inspiring theme ideas, and show you how to build a sales kickoff agenda that rocks.

Get ready to ditch the mixed nuts and savor the gourmet experience. Your sales team’s future self will thank you.

Why SKOs Matter

Before we jump into sales kickoff themes, let’s discuss the importance of a well-executed SKO.

Your SKO sets the first brushstroke on the canvas of your sales year. 

It’s where you define the colors, set the mood, and hint at the masterpiece waiting to be revealed. A strong, thematic SKO isn’t just about immediate excitement; it’s about planting the seeds for sustained motivation, shared purpose, and laser-sharp focus.

Here’s why that first stroke matters:

• Shared Vision: Imagine your team sharing the same mantra and marching toward the same goal. That’s the power of an SKO. It melts individual anxieties into a united front, propelling everyone forward with collective purpose.
• Sustainable Motivation: A well-crafted SKO isn’t just a sugar rush; it’s a slow-release energy capsule. It equips your team with knowledge, tools, and camaraderie that fuel their fire throughout the year, not just until the next meeting.
• Strategic Alignment: Most importantly, it’s about aligning your team with your organization’s goals. Goals become more than numbers on a screen when you imbue them meaningfully. An SKO helps your team internalize the “why” behind their targets and ties their job roles directly to those. This helps every action feel purposeful and connected to the bigger picture.

But remember, just like any masterpiece, an impactful SKO requires careful planning. 

A generic agenda can compromise your overarching messages, hence the importance of a powerful theme. Choose workshops that resonate, speakers who inspire, and activities that drive home your message like never before.

Why It’s Beneficial to Create Your SKO Around a Theme

Sales kickoff themes represent more than window dressing.

A theme binds your event and transforms it from a scattered gathering to a powerful experience that fuels your team’s drive and direction.

Here’s why a theme takes your SKO to the next level:

Cohesive Narrative: A theme provides a central thread, weaving together speakers, workshops, and activities into a coherent narrative. This story resonates with your team, making them feel invested in the journey, not just passive observers.
Theme examples:

• Overcoming the Mountain of Market Disruption
• Unleashing the Inner Sales Warrior

Engagement and Interest: A well-chosen theme sparks curiosity and excitement. It’s no longer just another “blah blah blah” meeting. Attendees are drawn in, eager to see how the theme unfolds and how it applies to their individual goals. Think gamified activities, interactive sessions, and speakers who embody the theme’s spirit. Engagement becomes effortless, and the learning sticks.

Theme examples:

• Adventure/Quest-Themed:
  • “Expedition to Exceed: Charting the Course to Sales Domination”
    • Engagement: Interactive map displays progress toward goals, gamified activities like “boss battles” for difficult clients, and scavenger hunts for sales tips.
    • Interest: Appeals to the competitive spirit, sense of discovery, and desire for achievement.
• Transformation/Evolution-Themed:
  • “Metamorphosis: From Sales Caterpillar to Revenue Butterfly”
    • Engagement: Workshops on skill development, personalized “transformation plans,” before-and-after photos of team growth.
    • Interest: Captures the desire for personal and professional growth,and emphasizes the power of change and continuous improvement.
• Space/Exploration-Themed:
  • “Galactic Growth: Launching Your Sales Rocket to New Heights”
    • Engagement: VR simulations of sales scenarios, “mission control” rooms for strategy sessions, team building activities focused on collaboration in a high-stakes environment.
    • Interest: Taps into the fascination with space, emphasizes the power of innovation and teamwork, fuels a sense of boundless possibility.
      

Workshop Framework: A theme guides the development of workshops and sessions. It provides a clear focus, ensuring each activity contributes to the overarching message. Think “Conquering Customer Canyons” or “Building Bridges of Trust.” These themes naturally translate into workshop topics like objection handling, building rapport, and mastering advanced sales techniques. 

The theme becomes the roadmap, ensuring every session delivers value and reinforces the core message.

 Enhanced Impact: Lastly, a unified theme amplifies the overall impact of your SKO.

It’s not just about presentations and speeches; it’s about creating a memorable experience long after the event ends. 

Consider energizing activities, branded giveaways, and a consistent visual identity that reinforce the theme. This multi-sensory approach leaves a lasting impression, motivating your team to carry the theme’s spirit into their daily work.

Additional Sales Kickoff Themes and Session Examples 

Theme: Customer Retention

If securing loyal customer relationships is your north star metric for the year ahead, consider building your SKO around the theme: “Retention Revolution: Building Fortresses of Customer Loyalty.” 

Sales kickoff themses like thie one aren’t just catchy phrases; they represent strategic manifestos. It defines your mission and guides every aspect of your event.

Imagine interactive workshops like “Building Lasting Relationships,” where your team dives deep into strategies for fostering emotional connections and exceeding customer expectations. 

Or, “Retaining Your Champions,” where they learn to identify and nurture high-value clients, turning them into brand advocates. 

Featured speakers could be customer success champions from within your own ranks, sharing their stories of loyalty-building magic. Industry experts on retention could offer insights on navigating challenges and building long-lasting partnerships. Or, you could ask one of your long-term customers to share their experience. 

But the engagement doesn’t stop there. 

Role-playing exercises can put your team in customers’ shoes, helping them hone their communication skills and handle feedback gracefully. Awards for top customer retention achievements can spark friendly competition and celebrate successes. 

By weaving this theme into every fiber of your SKO, you’ll ignite a passion for customer loyalty in your team, equipping them with the tools and inspiration to build fortresses of customer relationships that stand the test of time.

Theme: Goal Alignment

If achieving harmonious unity between individual goals and company objectives is your guiding star for the year ahead, your SKO theme could be: “Synergy Symphony: Orchestrating Individual Goals for Collective Triumph.” 

Potential workshops could include: “Aligning Individual Goals with Organizational Objectives,” where your team learns to translate broad company visions into personal action plans. Or, “Creating a Unified Vision,” where they collaborate to craft a shared roadmap for growth, fostering a sense of collective purpose. 

You could invite executives or board members from your team as speakers to paint a vivid picture of the company’s future and how your goals get us there. 

Interactive goal-setting sessions can guide your team through setting SMART goals that align with their strengths and ambitions. At the same time, team-building exercises around common objectives can strengthen their sense of unity and collaboration. 

Every element of your SKO, from the keynote address to the closing activity, should echo the theme of synergy, reminding your team that their efforts are the instruments in a grand orchestra, each note contributing to the harmony of collective triumph. Orchestrate an SKO around this theme to create a powerful symphony of ambition and alignment, ensuring your team marches in lockstep towards achieving their goals and exceeding their potential.

Theme: Upselling and Cross-Selling

If unlocking hidden revenue within your existing customer base is your strategic mantra for the coming year, consider anchoring your SKO around the theme: “Beyond the Buy Button: Orchestrating a Crescendo of Upselling and Cross-Selling.” 

This theme acts as a clarion call to action, urging your team to explore the fertile fields of customer potential beyond the initial sale.

Example SKO workshops might look like “Mastering the Art of Upselling,” where your team delves into the nuances of value proposition, psychological triggers, and objection handling to turn “maybes” into resounding “yeses.” Or “Effective Cross-Selling Techniques,” where they learn to identify complementary offerings, weave compelling narratives of customer benefit and build seamless upselling and cross-selling journeys. 

For speakers, you could have your top-performing upsell/cross-seeling rep share their best practices and strategies or invite industry experts who specialize in perfecting land and expand sales techniques. 

Then, tie in immersive role-playing exercises to put your team in the driver’s seat of real-world upselling scenarios, honing their skills and building confidence. Group discussions on successful cross-selling campaigns can foster collaboration, share best practices, and spark innovative approaches. 

Every element of your SKO, from the keynote address to the interactive sessions, should pulsate with the rhythm of “Beyond the Buy Button,” reminding your team that every customer encounter holds the potential for a revenue crescendo. 

Need more theme ideas? Check out this blog. 

Your SKO Theme Team

We’ve discussed themes and how they can help elevate your SKO. But who should be involved in deciding what theme works best? Crafting a genuinely impactful SKO experience takes the right ensemble.

Below, we look at who to include on your “Theme Team.”

1. Sales Leadership and Enablement: These conductors set the tone and ensure the theme resonates throughout the event. They’ll provide strategic guidance, oversee workshop development, and champion the theme’s message to the entire sales force.

2. Marketing and Event Planning Specialists: Think of them as the stage crew, crafting the visual identity, designing engaging activities, and ensuring a seamless flow from pre-event hype to post-event follow-up. Their expertise in storytelling and logistics will bring the theme to life in every detail.

3. Top Performers and Key Stakeholders: These are your star performers — on stage and behind the scenes. Involve top-performing sales reps in workshop development, panel discussions, and role-playing exercises. Their real-world experience and insights will add invaluable authenticity to the theme.

4. Cross-Functional Collaborators: Remember to include the instrumentalists from other departments too. Invite marketing, customer success, and product development teams to contribute their unique perspectives to workshops and discussions. This cross-pollination will enrich the theme and foster a sense of company-wide ownership.

The key is to choose skilled and enthusiastic individuals about the chosen theme. Their contagious passion will ensure your event resonates long after the final curtain falls.

Bonus Tip: Consider forming a smaller “Theme Champion” sub-team who can act as internal cheerleaders, keeping everyone engaged and on message throughout the planning process.

Conclusion: Sales Kickoff Themes

You should feel prepared now to scheme up a theme aligned to next year’s goals, and with the crew in place to execute it to perfection.

For additional sales kickoff resources, check out QuotaPath’s latest guide, Mastering Sales Kickoff Excellence. This ungated guide shares SKO planning best practices, including budget-friendly activities, sales kickoff agenda recommendations, compensation planning rollout tips, and more. 

Schedule time with our team today to see how QuotaPath can streamline your sales compensation management and payment processes. 

Podcasts have rapidly risen in popularity from 274.8 million listeners worldwide in 2019 to 464.7 million in 2023. With over 5 million podcasts, there’s something for everyone, including sales professionals, with over 10,000 active sales podcasts available.

Whether you’re a first-time sales development representative or a seasoned CRO, staying informed and inspired in the ever-evolving sales world is essential. This is especially true with current economic and market volatility influencing buyer preferences and behaviors. 

Podcasts provide an excellent (and accessible) opportunity to level up your skills and benefit from on-demand, free professional development. In fact, 74% of podcast listeners reported tuning in precisely to learn and grow. 

So, what are the best sales podcasts you should add to your rotation? 

In partnership with Women in Sales, which we’re a proud partner of, we compiled a list of everyone’s favorites. 

Best Sales Podcasts to Add to Your Queue

10. Topline by Sam Jacobs, AJ Bruno, and Asad Zaman

Every week on the Topline podcast, Pavilion Founder and CEO Sam Jacobs, QuotaPath Co-Founder and CEO AJ Bruno, and Sales Talent Agency CEO Asad Zaman discuss and debate the trends, news, and developments impacting the B2B SaaS world. Tune in for hot takes, strong opinions, and dry humor.

9. Taking the Lead with Christina Brady

Taking the Lead is a podcast for B2B tech professionals, leaders, and executives who want to learn and be inspired. Spekit SVP of Sales Christina Brady interviews top female icons at the forefront of revenue teams. She highlights their unique stories, journeys, wins, and challenges to help tech professionals understand the industry, trends, and how to navigate the B2B Tech landscape.

8. Sales Pipeline Radio with Matt Heinz

On Sales Pipeline Radio, Heinz Marketing Founder and President Matt Heinz interviews B2B sales and marketing entrepreneurs, experts, and professionals. The show covers topics like incorporating empathy in your sales strategy, using AI to find prospects, and how to use your sales data. 

7. Conversations with Women in Sales with Lori Richardson

Conversations with Women in Sales began as a resource for women in sales. In this podcast, Women Sales Pros Founder Lori Richardson talks with women sales leaders about their careers and practical sales tips. This show launched in 2018 due to the lack of women in sales roles and on panels. Episodes cover topics like how to avoid imposter syndrome, build a sales funnel, and succeed in tech sales.

6. Outbound Squad with Jason Bay

The Outbound Squad podcast delves into topics like sales prospecting, cold calls, outreach sequencing, and discovery calls to help reps land more meetings. Outbound Squad Founder and CEO Jason Bay interviews a sales expert or top rep and ends each episode with an actionable tip.

5. Rep Matters hosted by Zoya Segelbacher and Caroline Jones

The Rep Matters podcast is for sales professionals eager to develop their business acumen and become top performers. In each episode, Gong Sales Enablement Leader Zoya Segelbacher and Business English Instructor Caroline Jones explore salespeople’s real-life experiences, obstacles, and successes. This allows listeners to learn valuable insights into the strategies, mindsets, and skills that drive success in sales.

Guide: Mastering the SKO

Unlock the secrets to a successful Sales Kickoff (SKO) with our comprehensive guide.

Read Guide

4. Ashley & Katrine’s Infinite Revenue Playlist powered by Commsor

On Ashley & Katrine’s Infinite Revenue Playlist, Commsor Head of Sales Katrine Reddin and Parentaly Account Executive Ashley Coghill candidly discuss their experiences working in tech sales. Their goal is to help women navigate challenges in the workplace and develop as revenue professionals.

3. Big Boss Energy Podcast with Kayla Burke

The Big Boss Energy Podcast, hosted by Microsoft Enterprise Sales Specialist Kayla Burke, showcases inspiring success stories. This podcast empowers people to identify tools and strategies to boost career success, mindset, and finances. 

2. 30 Minutes to President’s Club by Nick Cegelski and Armand Farrokh

The podcast 30 Minutes to President’s Club ranks as the #1 sales podcast in the world. It provides sales professionals with actionable tactics to help them achieve their sales goals. During the show, Hosts Nick Cegelski and Armand Farrokh interview top sales performers and leaders or they share their insights and strategies. Nick and Armand designed each episode to help you improve your sales skills and close more deals.

1. Sales Gravy hosted by Jeb Blount

The Sales Gravy podcast features best-selling author, speaker, and Sales Gravy CEO Jeb Blount. Episodes range from 10 minutes to an hour, so you can select the episode that best suits your schedule. Topics covered include sales management techniques, managing customer price increases, and creating an accountability culture.

How to Make the Most of Sales Podcasts

Now that you’ve got a solid list of new content, here are a few tips to optimize your listening experience. 

Like many things, learning from podcasts takes more than simply listening. 

According to historical research by Hermann Ebbinghaus, we only retain about 25% of what we learn and forget up to 70% of new information within 24 hours unless we review the information again.

Fortunately, there are various ways to overcome this without repeatedly listening to the same episodes, such as the following:

1. Take notes

Taking notes while listening helps you focus on what is being said. Note-taking has been found to boost your retention and recall of the information learned. Plus, notes allow you to refer back and review the information for reinforcement while making it easier to implement newly learned sales strategies.

2. Hit pause

Podcasts allow you to pause the recording or replay a segment whenever necessary so you can contemplate complex ideas before moving on to the next idea. This lets you consider how new information applies to your day-to-day work and where it might help.

3. Discuss

Explaining what you learn has been proven to improve learning and information recall. So, discussing a podcast with someone else would likely have the same benefit. Taking this step is a great way to put newly learned skills and techniques into practice, further reinforcing the information.

4. Focus on the most useful information

Although a particular podcast may contain helpful information, it may not all apply to your current situation. So, prioritize the bits that are most useful to you in the present and put them to use. Otherwise, you may be overwhelmed by too many options and not implement any of your newfound insights.

Future Trends in Sales Podcasting

Sales podcasts cover a diverse range of emerging topics to address the evolving needs and challenges in the sales industry. 

Some noteworthy topics include:

These topics reflect the dynamic nature of the sales industry. Podcast hosts often invite experts, thought leaders, and industry practitioners to share their insights and experiences on these emerging themes. Explore recent episodes from relevant sales podcasts for the latest and most specific information.

Listen and Learn

Podcasts provide easy access to a huge array of sales-related topics to help boost your continued professional growth. Ensure you get the most from your listening by taking notes, reviewing them, discussing new concepts, and putting them into practice. Get started with your recommended podcasts; you may find a new favorite to add to your rotation.

About QuotaPath

QuotaPaths’s sales compensation management platform is designed to help revenue leaders automate, streamline, and optimize their sales compensation process. With QuotaPath, build fair and motivating compensation plans, provide plan and earnings visualizations, model and test compensation proposals against previous data, and gain insights into the performance of our compensation strategies. 

Spend less time on administrative tasks and more time focusing on what matters: coaching your team, closing deals, and driving revenue.

Learn more by scheduling time with our team or by signing up for a free trial. 

Account executives (AE) owning the renewal process is common practice in SaaS. 

But not all SaaS companies follow suit.

In this sector, particularly among mid-sized to large companies, account executives often take responsibility for managing and renewing customer subscriptions. This approach allows account executives to maintain a direct relationship with customers, understand their evolving needs, and ensure a seamless renewal process.

Conversely, early-stage companies typically leave renewals to account managers (AM) or customer success managers (CSM). This allows the AEs to focus exclusively on growing the customer base by adding new logos versus retaining existing ones, which can muddy priorities.

Our Compensation Plans Templates library contains 10 example AE compensation plans for the latter. 

So, what about the mid-size to large companies who need comp plans with a renewal component? 

Enter this blog.

AE comp plan renewals

For your AE comp plan with a renewal focus, generally, you’ll create two quotas for the AE.

1st Quota: New Biz

2nd Quota: Net Revenue Retention (NRR)
      or Gross Revenue Retention (GRR) with an upsell component

Then, you will dedicate a specific amount of the AE’s variable to each quota. You’ll base this on how much time you want the AE to spend on each while also considering how much you want to compensate them for doing so. 

For example, if their variable is split 50/50 (50% New Biz and 50% NRR), and it’s easier for the AE to secure renewals and upsells, your rep will most likely spend more time there. However, if you dedicate 10% of their variable toward renewals, that’s likely not enough to motivate your reps to focus on renewals.  

TIP: Carefully lay out the splits and recognize that the splits will vary by company. If your AEs are the only ones responsible for retention and upsells, a 50/50 play may work. Remember that if renewals are easier than new logos, your reps may slip on the new biz under this comp structure.

Other comp structure considerations:

• Some companies will pay the AE on renewals but offer it in addition to their on-target earnings (OTE), offering a nice bump in compensation to the rep.
• Usually, the commission rate on renewals will be less than that of new biz (think: 4% versus 8%)
  • You could also offer single-rate or fixed bonuses for high-risk churns that end up renewing
• We’ve also seen AEs not earning on renewals but still having a renewal quota. Reps earn nothing compensation-wise for renewals but are penalized if they don’t hit a renewal target.
  •  We do not recommend this for obvious reasons.
• You could pay AEs only on upsell, as well, versus renewals and upsells. For instance, if the contract value increases from $100K to $150K, the rep earns commission from just the $50K.
  • Note that this structure sends the message that your org. weighs renewals and churns the same. For that reason, we do not recommend this comp model.
• Lastly, we highly recommend including multi-year accelerators or incentives at the new-biz and renewal levels. This secures predictable retention and lengthens the contract term, which gives your team a longer runway to build and establish value and adoption for your customer. 

Build and test comp plans

Understand what your comp plan proposals’ potential commission earnings and team quota attainment will calculate to with existing deal data.

Learn More

AE Comp Plan Renewal Focus Best Practices

When designing an AE compensation plan with a renewal component, several key considerations are crucial to ensure alignment with business goals and motivation for the sales team:

• Clear Objectives and Metrics: Clearly define the objectives tied to renewals and establish measurable metrics. Whether it’s renewal rates, customer satisfaction scores, or upsell opportunities within renewals, having specific metrics will guide performance expectations.

• Balance with New Sales: Strike the right balance between rewarding new customer acquisition and successful renewals. Motivating AEs to focus on both aspects is essential, fostering a holistic approach to customer lifecycle management.

• Renewal Complexity: Consider the complexity of your product or service renewals. If renewals involve substantial account management efforts, a tiered commission structure can be effective based on the required level of effort.

• Customer Success Collaboration: Encourage collaboration between AEs and Customer Success teams. Incentivize AEs to work closely with Customer Success to ensure a smooth renewal process and promptly address customer concerns.

• Long-Term Value (LTV): Align the renewal component with the customer’s long-term value. Consider factors like upsell potential, cross-selling opportunities, and overall customer lifetime value when determining renewal incentives.

• Retention and Churn Mitigation: If churn mitigation is a significant concern, structure the renewal component to reward AEs for retaining customers. Implement measures to address potential churn factors and provide bonuses for successful retention efforts.

• Timing of Payouts: Define when renewal commissions are paid out. It could be upon contract renewal, staggered throughout the renewal period, or tied to achieving specific milestones during the renewal process.

• Performance Thresholds: Set performance thresholds that AEs must meet to qualify for renewal incentives. This ensures that rewards are earned through sustained effort and success rather than automatic entitlement.

• Communication and Training: Communicate the renewal component of the comp plan to AEs and provide training on effective renewal strategies. Ensure that AEs understand how their efforts contribute to short-term and long-term business objectives.

• Data Accuracy and Reporting: Implement robust systems for accurately tracking and reporting renewal metrics. AEs should have access to real-time data to monitor their progress and understand the impact of their efforts on renewals.

By carefully considering these factors, companies can design AE comp plans with renewal components that motivate sales teams, drive customer retention, and contribute to overall business growth.

About QuotaPath

For additional support designing compensation structures, check out some of our other resources:

• 3 commission pay examples for Account Management & Customer Success
• What to include in your VP of Sales compensation package
• For you to download: AE compensation policy template
• Download an SDR compensation policy template
• Compensation Plan Templates
• Sales Compensation Calculators and Tools

Interested in automating your sales compensation process? Schedule time with our team today to see how QuotaPath can help you run commissions more efficiently and accurately. Or, explore our platform by signing up for a free trial. 

A well-designed and executed sales compensation plan is essential to company success. It is intended to communicate expectations and motivate sales behaviors that drive business goal achievement. If the comp plan is confusing, sales reps won’t understand how they earn commissions and will not effectively prioritize sales activities that drive the desired results.

Every leader we surveyed for our report cited at least one issue during the design process, and 30% identified “maintaining simplicity” as the most challenging setback. Our survey also revealed a pattern of overcomplicated plans.

2024 Compensation Trends Report

Our most recent survey, Solving the Biggest Sales Compensation Challenges, evaluated today’s biggest issues with sales compensation design, management, and execution.

Read Report

Don’t worry; we’re here to help simplify your comp plans and boost their effectiveness.

This blog will review the pitfalls of overcomplicated plans, aligning objectives/metrics with comp plans, streamlining, communicating, reviewing adjustments, Sales and Finance collaboration, and plan feedback.

Understanding the pitfalls of overcomplication

Complex sales compensation plans often lead to setbacks.

Our revenue leaders surveyed said overly complicated plans are harder to execute (18%) and too complicated to understand (17%). They also indicated that “simplifying it” (22%) was the most needed improvement in sales compensation management.

Plus, 19% of participants reported that their comp plan doesn’t motivate reps. So, it’s unsurprising that 60% of reps take 3 to 6 months to understand how they are paid.

The solution? Simplifying sales comp plans.

For example, EverView had 35 comp plans, some of which had as many as 12 components.

When EverView leaders surveyed their sales team, they found that 50% of their reps didn’t understand how they earned commissions. So, under the guidance of the QuotaPath team, they simplified and consolidated them into 8 plans.

This newfound clarity motivated their sellers so much that 70% of the team hit quota, and an additional 20% met 90% of the quota.

It’s amazing how motivating a comp plan can be when your reps understand it.

Clarity in objectives and key metrics

Survey participants identified maintaining plan alignment with business goals as the biggest challenge in sales compensation management. It’s essential to clearly define objectives and identify metrics that align with them so the plan motivates behaviors that drive business goals.

“You have to eliminate any disconnect between the business’s performance and your team’s performance,” said QuotaPath VP of RevOps Ryan Milligan. 

Focusing on metrics aligned with business objectives and creating comp plans based on those metrics helps your business drive profitability, growth, and seller satisfaction.

This is a win-win where reps are rewarded for sales actions while the business achieves its goals.

Streamlining commission structures

Although simplifying tiered commission structures makes them easier to understand, you must ensure they motivate your sales reps. A great way to achieve this is by limiting each plan to three components, like an accelerator, a standard commission rate, and a bonus.

Then, evaluate the balance between simplicity and competitiveness. Make sure that your plan is well aligned with industry and market trends. Otherwise, you could encounter difficulties recruiting and retaining top talent, especially in a competitive hiring market.

EverView illustrates successful streamlining commission models. QuotaPath partnered with them to get their plans down from 35 to 8 and then to 1. As a result, they had their best sales year immediately after simplifying their comp plans, with 70% of the team hitting quota.

Transparent and understandable communication

Clear communication is essential when introducing a new or adjusted sales compensation plan. You don’t want sales reps to experience an unpleasant surprise when their commission check differs from what they expected after pushing for that big deal based on the previous plan.

Failure to share plan changes with sellers before launching a new commission plan leaves reps feeling blindsided, disappointed, and suspicious. This can even cause some reps to quit over miscommunication of comp plans.

That’s why you must create a compensation communication plan when designing a new commission plan. This is where you plan to clearly explain the plan, what has changed, and why, and answer questions about the plan. Then, confirm that everyone understands how they earn commissions by completing a plan verification process. This step creates alignment and transparency across the comp planning process.

Tips for effective communication to avoid misunderstandings include:

• Use consistent messaging each time you share the plan to avoid confusion.
• Employ various methods to communicate the new plan because everyone learns differently.
• Start broad and become more detailed each time the plan is shared and in increasingly smaller audiences, such as the entire sales team vs individually 1:1.
• Create a Frequently Asked Questions (FAQs) document.
• Include calculation examples based on various scenarios within the plan documents.
• Explain why the plan is changing.
• Share the benefits of the new plan.
• Plan documents should be sufficiently long to provide details without being overly lengthy.
• Avoid using legalese and technical or confusing jargon in the plan document.
• Clearly define how performance ties to incentives.

Regular reviews and adjustments

Your work doesn’t end there once you have a simple, logical, and fair compensation plan.

As the market changes, your business goals also change, calling for your team to revisit and adjust your compensation plans accordingly. This way, your plans continue to motivate your reps and drive business goals. Otherwise, you could fall behind quickly and incentivize behaviors misaligned to the changing goals.

What should you look for when you assess your comp plan’s success?

Here are some best practices for continuous improvement and adaptability:

• Make sure your compensation plans are aligned with your most important business metrics.
• Check to see if you’re on target to hit the current quarter’s targets and what percentage of your team has or is on pace to finish the quarter at goal.
• Look at the difference between earnings and attainment of your lowest-performing rep and your highest.
• Make sure you aren’t paying commissions when your team isn’t hitting targets.
• Gather rep feedback to see how they feel about the current plan.

How Sales and Finance can work better together this comp plan season

Learn what preemptive steps you can take before inviting Finance into your compensation plan discussions and how to have productive and aligned conversations.

Read Blog

Collaboration between sales and finance teams

Sales and Finance should work together throughout the sales comp design and implementation process to ensure rep confidence in the program. Collaborating early and often aligns Sales and Finance to ensure plan simplicity and accuracy, increasing its effectiveness.

For example, our VP of Finance, Ryan Macia, and Senior Financial Analyst Jonathan Mann are excellent examples of how Finance and Sales can partner throughout the sales compensation design and implementation process.

Ryan and Jonathan both suggest that Sales engage with Finance after creating a plan proposal.

“I prefer when Sales comes to us with options and pre-proposals,” Ryan said. “I don’t like starting from scratch. If you can come to me with some concepts that will motivate the team, we can determine if it will break the bottom line.”

Employee feedback and involvement

Another way that Sales and Finance work collaboratively on the comp plan design is for Sales to gather feedback from quota-carrying team members. Soliciting feedback from sales representatives during the process helps you understand what actually motivates them, what they’ve liked in previous plans, and what they would’ve changed.

Involving sales teams in the process by requesting their input enhances plan acceptance when it is implemented. This also builds a culture of openness and responsiveness to feedback that creates trust.

Achieve sales compensation plan simplicity

The most challenging issue leaders have when creating comp plans is maintaining simplicity. You can employ several key strategies to resist overcomplicating sales compensation plans.

Doing things like getting clear on your business objectives and metrics, simplifying tiered commission structures, and communicating the new plan are a good start.

Then, remember to conduct regular reviews to assess plan performance, encourage Sales and Finance collaboration during the design and implementation process, and gather feedback from quota-carrying reps.

Taking these steps helps you achieve sales compensation plan simplicity and clarity and drives sales team success. It might also be worth exploring automating the process to deliver visibility and insights into your compensation plans’ performance and test and measure plan changes — schedule time with our team to learn more.

As we approach the end of another year, it’s time to reflect on the incredible journey we’ve shared at QuotaPath. 

2023 presented a unique challenge for many tech companies, including us, as we navigated market volatility. Despite the economic environment’s uncertainties, our commitment to empowering revenue leaders to optimize their sales compensation processes remained unwavering.

In fact, we doubled down on our technology and services to make QuotaPath users’ experiences more efficient and impactful by releasing nearly 50 new features and product updates — many of which came directly from listening to our customers and turning feedback into innovation. 

These include enhancements to our free trial, streamlined setups in QuotaPath, tools to draft and test compensation plan proposals, and role-specific holistic dashboards to prioritize task management and deliver more transparency into compensation. 

We’ve listened closely to your feedback and prioritized developments that address your most pressing needs.

“QuotaPath continues to listen to customer feedback on ways to evolve the payout process in the platform by updating workflows and improving the reports available for my teams,” said a Director of Finance who uses QuotaPath.

Here’s a glimpse into the key areas we focused our efforts:

Accelerated Onboarding and Time to Value

• Free Trial enhancements
• Sample compensation plans and data (sandbox)
• Streamlined set up

First, we focused on getting started in QuotaPath more quickly.

Chances are that if you’re evaluating QuotaPath, you’ve already experienced snafus with your sales compensation management process. 

To help realize the value of automation faster,  this year, we launched enhancements to our Free Trial, filled new QuotaPath workspaces with sample plans and data, and streamlined plan setup. 

The latter took getting started in QuotaPath down to just 3 steps that follow an intuitive, guided process. So, the first time you log in, you’re greeted with a setup dashboard that takes you through building a comp plan, syncing deal data, and onboarding team members. 

Enhancements to Comp Plan Builder 

• Advanced Path Dependencies
• Fractional Attainment
• Auto Commission Rates
• Draft Plans
• Plan Details

Next, we invested in our Plan Builder tool to accommodate deeper comp plan complexities.

These adjustments included advanced path dependencies, fractional attainment (think: an SDR that is paid based on demos set), auto commission rates, draft plans, and plan details. 

Each of these has led to huge improvements in building out comp plans in our system.

For instance, auto commission rates calculates commission rates on the backend (and shows you how the rate was calculated). This allows you to skip building complex formulas the next time your comp plan calls for variable pay splits, multipliers, and more. 

“The automatic commission rate feature at the rep level will support an expedited process around plan configuration, increase visibility, and minimize opportunities for errors. I’m excited that QuotaPath continues to enable our team at Muck Rack to execute with enhanced precision and transparency!”, said Claire King, RevOps Associate Director at Muck Rack.

And we recently introduced Draft Plans so those responsible for proposing comp plan changes can test their structures against previous sales data to see how they would perform. 

This feature came at the request of several of our customers, who were thrilled to see it live.

“So excited to use this for building next year’s plans ahead of time. Kudos to your team for getting this out there before then,” wrote one customer. 

Lastly, we made editing and monitoring the ongoing performance of comp plans in a new Plan Details view easier. This dashboard pulls earning paths within each compensation structure, the deal data used to calculate commissions, and lists the reps who follow that plan. A performance section within this view also shows how your team is progressing to plan and displays total earnings, average effective rate, and plan attainment by rep.

Streamlined Commission and Data Management

• Home for Admins & Reps (including a mobile view for Reps)
• Mobile view for Reps
• Deal Search and Deal Details
• Member Details
• Visual Design Updates
• Streamlined Payouts Workflow

The new Plan Details view skims only the surface of our efforts to streamline commission and data management. Throughout 2023, we also rolled out visualizations, design updates, and workflows tailored to the various roles of our users. 

For example, Home for Admins and Home for Reps surface compensation notifications, such as lingering deal approvals, flagged deals that need resolving, or comp plans awaiting rep signatures. 

Admins see total earnings across their teams, payouts and effective rates, and trends according to quota frequencies.

“This view brings forward the right data that I need to complete the commission process faster and close the loop on discrepancies,” said a customer.

Meanwhile, reps gain an overview of their earnings per month or quarter and plan payment breakdowns and payouts, fostering seller accountability, understanding, and ownership of their sales compensation. 

Then, we cut the time to process commissions in QuotaPath in half by organizing deal and payout information by rep. Called Streamlined Payouts Workflow, this enhancement enables those who run commissions to approve earnings and schedule payouts from a universal view in a guided process.  

“Streamlined Payouts is huge for me,” said one of our customers, who is an accountant for a SaaS company.

New integrations with leading CRM and Payments/Accounting platforms

• Self-service integrations syncs (including Pipedrive, Copper, Quickbooks, GoogleSheets, and Stripe)
• Okta
• Microsoft SSO

Last but not least, 2023 marked a watershed moment for QuotaPath, as we empowered revenue teams with unprecedented autonomy and efficiency by launching self-service integrations within our platform. 

Now, you can seamlessly bridge the gap between your existing tech stack (Pipedrive, Copper, Quickbooks, GoogleSheets, and Stripe) and QuotaPath with just a few clicks. 

Plus, to simplify login processes and enhance user security, we enabled customers to login to QuotaPath using their Single Sign-On accounts with Okta and Microsoft Azure SSO. 

About QuotaPath

These advancements are a testament to our unwavering dedication to providing you with the best possible tools to manage your sales compensation effectively. 

We’re confident that these new features will empower you to:

• Get started in QuotaPath quickly and easily.
• Design and test compensation plans with greater accuracy and confidence.
• Manage commission payouts and deal data more efficiently.
• Integrate QuotaPath seamlessly into your existing technology ecosystem.

As we move forward, we remain committed to listening to your feedback and evolving our platform to meet your ever-changing needs. We’re excited to continue bringing innovative features to the market. Speaking of which, we have two exciting additions coming in January involving customized reporting that will provide valuable insights into commissions for our customers.

Thank you for being a part of the QuotaPath community! Want to be a part of it? Schedule time with our team to learn more about how QuotaPath can help you 

Congress passed the Sarbanes-Oxley Act in 2002 to mitigate fraudulent financial reporting, requiring public companies to run audits with an independent auditor every year.

But what about startups? Are they required to hold audits?

While not mandated by law, a few situations may call for it. It’s a pretty standard procedure between startups and investors, and a good one at that. 

Take, for instance, QuotaPath — one of our lead investors calls for an annual audit as part of our funding agreement. 

Potential investors and creditors alike may require an audit to ensure the company’s financial statements are reasonably accurate and reliable. They can also identify risks or problems and verify that the company uses its funds responsibly and ethically. The goal of any public or private audit is to assess the risk of material misstatement in a company’s financials.

Audit more efficiently with QuotaPath

Expedite your audit processes and keep ASC 606 and 340-60 compliant. Approve sales deals, schedule payments, create audit-ready reports, and amortize commissions in one workspace to ensure a smooth and aligned month-end process.

Learn more

Another instance when startups subject themselves to an audit occurs when a business wants to sell. If so, potential buyers may request it to check if they’re getting a fair price. 

So, while not required by law, it is in a startup’s best interest to be audit-ready if an investor requires it down the road or a sale is on the horizon. Plus, it’s a good business practice. 

Why startups should embrace audits

Beyond an investor’s request, additional benefits come from completing an audit.  

First, an audit can help you identify potential problems with your business. This includes accounting errors, financial mismanagement, and compliance issues. By identifying these problems early on, you can address them before they become more significant.

Second, your findings and recommendations from the auditor can improve your business operations. They can help you identify areas with room for improvement, like process inefficiencies, potential risks, and vulnerabilities, and offer solutions to address each.

And third, an audit can build trust with investors and partners. If you want to raise money or partner with other businesses, an audit can show that your business is well-run and you are serious about your business.

But one does not simply run an audit. Gathering documents and addressing auditor questions takes tremendous time, organization, and preparation. 

Tips for Your Startup Audit

Sound daunting? It doesn’t have to be.

While not many people get excited about “auditing season,” they are a necessary part of running a successful business. They can act as a valuable tool for identifying and addressing potential problems.

To help prepare for audit season, whether your first or your 10th, follow these best practices and tips from QuotaPath’s Finance team, our VP of Finance Ryan Macia, and Finance Manager Jonathan Mann. 

5. Be preemptive.

Anticipate where the auditors’ questions will come from and shore up as much as you can leading up to it. You’ll have adjustments to make, but by getting ahead of them, you can minimize the adjustments the auditor will request. 

4. Prioritize what to focus time on.

Audits require a considerable time commitment from your Finance team. And that’s in addition to their day-to-day responsibilities serving the company. 

To help with time management, choose what you want to focus more heavily on.

You want to make sure to complete all of the documentation. But if you identify areas to hold off on until the auditor’s recommendations, you can save time and direct your attention to more time-consuming but straightforward tasks.

3. Be collaborative with your auditing team (not adversarial)

“Think of your relationship with your auditor as a partnership,” Ryan said.

It’s not a you vs. them. 

When you work in lockstep with them, they can help you identify and correct errors, improve internal controls, and keep you compliant with laws and regulations while providing assurance. 

2. Ongoing financial hygiene 

Ryan and Jonathan also offered some advice on how to stay abreast of audit tasks outside of auditing season.

“Make the audit requirements part of your month’s end process,” said Ryan.

1. Score yourself

Lastly, Jonathan suggested popping open financial statements and scoring yourself line by line.

“Ask yourself, ‘How comfortable am I with this getting audited?’” Jonathan said. 

Check for adequate supporting documentation and ensure any assumptions are clear and grounded. If it’s not, get that documentation. 

How QuotaPath can help with auditing of commissions 

We appreciate Ryan and Jonathan sharing their advice and experience regarding startup audits. 

Now, when it comes to sales commissions, QuotaPath can help prepare commissions for auditing.

Our commission tracking software provides a centralized platform for tracking, managing, and amortizing commission payments.

Let QuotaPath house your commission data so that when you need to run a report that shows commissions, payouts, and clawbacks, you can quickly populate one over any period. 

Plus, use granular audit trails to reconcile payouts with accruals and minimize the need for true-up entries. Close the books faster, define eligibility rules for when commissions payout, and feed your financial model from live forecasts in QuotaPath. 

Talk to one of our reps today to learn more, or sign up for a 30-day trial and see for yourself. 

It’s that time of year: compensation plan design season.

Many companies are finalizing the compensation proposals throughout November and December to prepare them for sales kickoffs during the first quarter.

The sales compensation plan is one of the most essential tools in a sales team’s arsenal. It can be a powerful way to motivate and reward salespeople and align their goals with the company’s overall business objectives. Who builds the sales comp plan will vary according to the size and stage of the company.

For instance, at smaller companies without a RevOps team, it often falls to the sales leader (who may or may not have built a comp plan before) and only the sales leader. At organizations with RevOps, the responsibility shifts to them.

But it shouldn’t be put on one department’s shoulders.

Rather, the comp plan should include input from Finance, Sales, maybe even the board, and support from HR.

Involving multiple departments with different perspectives in your plan design increases rep trust in the comp plan.

This blog explores who to include in your comp plan design committee and at what stage during the building process to involve them.

Let’s get started.

Who to include in your comp plan design committee:

Our 2023 Sales Compensation Trends survey revealed that sales leadership often owns the plan design process at early-stage companies, where RevOps teams take over this responsibility as companies scale. However, it’s essential that the plan isn’t designed in a silo.

The best comp plans result from collaboration across multiple teams like Sales, Finance, HR, and Marketing.

Below, we discuss what each stakeholder contributes to the process.

Sales leadership

Sales leadership is essential to any comp plan design committee. They have the most profound understanding of the sales team’s goals and challenges and provide valuable insights into structuring the comp plan to achieve those goals.

Their knowledge and insights enable them to emphasize what’s best for reps, making comp plans designed by sales leadership the most trusted.

Sales leaders can also facilitate getting feedback from sales reps to understand better what motivates them and what they’ve liked and disliked about previous compensation structures. This input is essential as you build the new comp plan.

Finance

Finance is another vital member of this design committee.

They can provide insights into the company’s financial goals and constraints and help ensure the comp plan is aligned with those goals.

Finance will typically be the department that “approves” the plan, but our recent report indicated a disconnect exists between how leaders view the success and alignment of their plans. For instance, Finance felt more confident than RevOps and Sales leaders that their plans align with business goals and that they motivate sales reps. That’s likely because of their role by coming in at the end of the design process.

By bringing them into conversations early, you can help ensure confidence in the plan’s performance is universal across the organization.

Have a pre-design meeting with finance to share your thoughts. Then, they can give you a pulse check to determine if you’re on the right track. From there, you can build your sales compensation strategy.

Build and test comp plans with Draft Plans

With QuotaPath’s Draft Plans tool, run plan proposals against existing CRM data to estimate total teamwide commissions, identify potential edge cases, get a pulse on plan effective rates, and see how realistic (or unrealistic) attainment goals are.

Read More

Revenue operations (RevOps)

RevOps teams are responsible for designing and implementing sales processes and technologies. They know the data, sales behaviors, motivators, and business context. This enables RevOps to provide valuable insights into structuring the comp plan to support the sales team’s processes.

However, we found that RevOps-led comp plans are the second most trusted, indicating that RevOps has some work to do in that area. One way to accomplish this is through increased sales team engagement. Our Senior Director of RevOps, Ryan Milligan, handles this by hosting monthly one-on-ones with every member of the sales organization to check in and gather feedback.

Board of Directors and C-Suite

Consider including your board of directors and C-Suite in the comp plan design process. They can guide the company’s overall business goals and objectives and help ensure the comp plan is aligned.

Ask them to prioritize three to five strategic company initiatives. Then determine if the sales compensation plan can reinforce any of those priorities.

Human resources (HR)

Less commonly talked about is HR’s role in comp plan design.

HR can provide support on the legal and regulatory aspects regarding sales compensation. They can also help to ensure that the comp plan is fair and equitable for all employees by providing industry rates on OTEs and salary structures.

This ensures that comp plans are competitive and helps prevent discord on the design team regarding how much other companies pay their reps.

Marketing

Marketing should support compensation plan design if the SDR/BDR team falls under their jurisdiction and if any or all of the marketing team have variable pay as part of their compensation package.

Also, marketing plays a massive role in building the financial model for the next year by generating inbound leads and pipelines, which is necessary to set quotas and OTEs for reps.

When to include each stakeholder in the comp plan design process

Each participant plays an important role in the comp plan design. Below, we look at when these various stakeholders engage in the process.

Early stages

Involve sales leadership and finance early on. They can define the comp plan’s goals and objectives and develop a high-level structure. Together, these stakeholders can also do some preliminary pressure testing to ensure that your proposed plan won’t break the budget.

Later stages

RevOps, the board of directors, and HR should join the later stages of the comp plan design process. They can provide feedback on the plan’s structure and ensure that it is aligned with the company’s overall business goals and objectives so it will drive desired outcomes.

Build your sales comp plan

The sales compensation plan is essential to motivate and reward sales reps while driving business objective achievement.

Although Sales Leadership or RevOps typically drives the sales compensation design process, it’s critical to build them outside of a silo. Collaborate with various departments throughout the process and remember to consider sales rep input. The resulting plan will be more effective and trusted by the sales team.

Still need more support on industry sales compensation best practices? Schedule a chat with the QuotaPath team or run sales compensation more efficiently with a free trial.

Will your next sales kickoff (SKO) be one of the 25% that earns an “A” grade?

According to data from TaskDrive, a research analytics firm for B2B and marketing teams, nearly 75% of sales kickoff attendees claim their company’s SKO fails to meet “A”-level standards. 

Here’s why you should care: Your SKO sets the tone and direction for the entire sales team throughout the year.

A well-planned and impactful SKO fosters a sense of alignment, motivation, and collaboration among team members. It provides a platform for sharing knowledge, learning from top performers, and aligning individual goals with the company’s strategic objectives.

It offers a time to reset, re-inspire, and re-engage your team after one of the most challenging years growth teams have seen. 

Plus, employees who feel their SKOs are well executed are more likely to experience increased motivation, job satisfaction, and a sense of belonging, leading to improved performance, customer satisfaction, and long-term business growth. In essence, a successful SKO becomes a catalyst for enhancing the overall success and cohesion of the sales team.

To help with your upcoming SKO, we created our latest guide, “Mastering the Art of the Sales Kickoff.”

Delve into the intricacies of planning, executing, and maximizing the impact of your SKO event. Get ideas for budget-friendly sessions, speakers, and follow-up activities to ensure your team meets and exceeds its goals in the coming year. 

Whether you’re a seasoned leader or diving into SKO planning for the first time, this guide will equip you with the strategies and best practices to have your employees sing your praise. 

Read below to learn more about the book and upcoming QuotaPath events supporting SKOs. 

Master Sales Kickoff Excellence

Unlock the secrets to a successful Sales Kickoff (SKO) with our comprehensive guide.

Read Guide

Inside Our Guide, You’ll Discover:

• The Impact of a Well-Executed SKO:
  • Understand why an SKO is not just another corporate meeting but a pivotal moment to set the tone for the year.
  • Learn why early planning is crucial and how to align your SKO with the company’s goals.

• Purpose of an SKO:
  • Explore how a well-executed SKO can align team goals, boost motivation, and contribute to overall success.
  • Discover the impact of a successful SKO on team performance, collaboration, and morale.

• What Every Successful SKO Includes:
  • Uncover the essential elements of a well-planned agenda, from speakers and learning sessions to compensation plan rollouts.
  • Learn the importance of an award and recognition ceremony and how end-of-day team events contribute to team building.

• SKO Best Practices:
  • Get actionable tips on early planning, cost control, aligning SKO objectives with company strategy, and creating audience-centric content.
  • Understand the importance of varied content formats, team building, technology usage, and feedback mechanisms.

• Compensation Discussion:
  • Recognize the imperative of transparent communication about compensation changes.
  • Gain insights into conducting dedicated sessions at the SKO to align your team with organizational goals and compensation structures.

• Recap, Action Items, and Follow-Up:
  • Ensure your team leaves the SKO understanding expectations and key takeaways.
  • Learn how consistent follow-up, support, and accountability contribute to the long-term success of an SKO.

• Stay Agile:
  • Embrace flexibility and adaptability to overcome unexpected challenges during the SKO.
  • Get tips on proactive planning, contingency measures, and maintaining a calm demeanor in the face of unforeseen circumstances.

Celebrate Your SKO with Us

To continue on that 2024 SKO energy, we’re hosting virtual and in-person events throughout January and February in cities near you. 

Up first is our Jan. 11 webinar, The SKO Playbook for Revenue Growth: Aligning Your Team for 2024, featuring our CMO Sara Strope, CEO and Co-Founder AJ Bruno, and special guests Salesloft CRO Steve Goldberg, and Seismic President and CRO Hayden Stafford. 

Register here for the webinar 

Then, we’ll host six in-person bowling events in Austin, Chicago, Boston, New York City, Washington D.C., and San Francisco. 

Register here, and we look forward to celebrating with you in person.

• SKO Celebration Happy Hours
  • Jan 16: Austin
  • Jan 18: Chicago
  • Jan 23: Boston
  • Jan 25: New York City
  • Jan 30: Washington D.C.
  • Feb 2: San Francisco

We’ll see you there!

About QuotaPath

QuotaPath is your trusted partner in streamlining and optimizing sales compensation. Whether rolling out new compensation plans at your SKO or enhancing ongoing commission management processes, QuotaPath empowers your sales teams, simplifies complexities, and ensures accuracy and transparency in commission payouts.

Schedule time with our team to learn more, or sign up for a free trial. 

Master the SKO with QuotaPath and drive sales excellence for maximum revenue growth.

Ready to scale your business but don’t have the cash to pay a full-time sales rep? A freelance sales rep may fit the bill. 

A freelance sales rep is a 1099 employee and a form of outsourcing to use an independent contractor to sell your product or service. 

If you’re just hearing about it, you’re not alone. However, this model has existed for a while.

In fact, this topic came up in a recent episode of Pavilion’s Topline podcast. 

Sam Jacobs reported, “We’ve been experimenting with sales outsourcing and have had great success with it at Pavilion.”

Asad Azman, Sam’s Co-Host and CEO of Sales Talent Agency, also shared, “Force Management’s entire sales team consisted of former CROs making $500-600K. Consequently, Force Management grew substantially because they had the best people talking to their customers.”

As you can see, outsourcing sales can be effective.

Still, we had questions. What types or stages of companies is a freelance sales team most suitable for, and who makes the best reps?

For help, we connected with SalesStar USA Founding Partner and Practice Leader Frank Niekamp. Frank oversees a group of clients for hire as 1099 sales associates and has firsthand experience hiring contract, or what he calls “Uber,” sales reps.

According to Frank, although hiring for freelance reps has slowed overall, there are still growing companies and startups that don’t have the capital to hire a full-time sales rep. And if that’s the case, this might be the solution they seek.

Below, we’ll look at the pros and cons of this model, when to hire freelance sales reps, and how to hire and pay them.

Let’s get started.

Pros and cons of this model

There are many benefits to hiring freelance sales reps and a few drawbacks.

The positives of using 1099 salespeople include:

• Sales expense becomes a variable expense: Freelance sales reps are 1099 employees who are most frequently only paid when they sell something, directly tying sales expense to revenue — although some may work for an hourly rate. This eliminates the return on investment (ROI) lag experienced when employing a full-time sales rep.
• New salesperson ROI is immediate: Contract salespeople aren’t an expense, whereas a full-time employee in sales is an expense until they become fully ramped. When a new full-time salesperson is hired, business owners are looking for an ROI within 9-12 months, but it may take up to a year and a half to cover their overhead.
• Improves cash flow: Outsourced sales reps are only paid when they generate revenue, simplifying cash flow.
• Staffing flexibility: Using freelance salespeople gives you flexibility as you scale your business, navigate seasonal requirements, or expand into new markets.
• Existing relationships: 1099 sales reps often sell for multiple non-competing businesses that appeal to their existing network of prospects. This offers the potential to sell to the contractor’s existing sales contacts.
• Less training: Freelance salespeople have a depth of prior selling experience, requiring minimal training.
• Shorter ramp-up time: 1099 sales reps are often semi-retired individuals and professionals with years of experience.
• Longer potential tenure: Unlike traditional sales reps, who may only stay in a role for up to two years, freelance reps are often available longer since they aren’t looking to advance their careers.

Now, let’s look at the negatives:

• Less dedication: Contract sales reps often sell for more than one business, so they aren’t investing as much time promoting your product as a full-time employee.
• Reduced output: Time investment and results will vary by rep for the same reason as their level of dedication.
• Retention varies: Although you may be able to retain freelance sales reps longer, it depends on how well they sell your product, their specific situation, and the length of your sales cycle. If they sell your product well, they will likely be easy to retain. But if they don’t have sufficient savings and your sales cycle is longer than 90 days, you may experience a high turnover rate since they likely need steady pay.

When to hire a freelance sales rep

So, when should businesses consider hiring a contract salesperson?

Frank said, “I see 1099 reps as a better fit for a small business looking to scale. They don’t have the cash reserve to hire a full-time employee and are still working through some proof of concept. As a result, they don’t want the funding to run out before they find a concept that actually works.” 

He added that companies with shorter sales cycles work best for this model.

How to pay a freelance sales rep

If you decide to hire contract salespeople, they are typically paid a straight commission. 

“This will vary, but generally, you eat what you kill,” Frank said. 

Some of the commission-based structures that Frank has seen offered to 1099 sales reps include:

• Compensation for activities completed within the sales process, such as booking meetings, creating opportunities, or creating proposals.
• Commissions are paid if an opportunity converts to a closed deal. Commission percentage rates will vary by industry and margin levels of product. In SaaS, for instance, gross margins are double what a manufactured product would ever be able to capture. For example, manufacturing has margins in the high 30s and 40s, whereas SaaS margin rates are typically double that.

“The common thread is that compensation is generally higher for 1099 contracted employees and at least 1.5x to 2x the commission rates of a full-time employee,” said Frank.

Additionally, consider the following challenges when compensating freelance sales reps.

 “It’s not difficult to hire a 1099 salesperson. That’s the easy part,” said Frank. “Plenty of people are willing to work more independently with less predictable income in the first 90 days.” 

The sales cycle is where this becomes challenging. 

“If your sales cycle is so long that you can’t compensate your 1099 rep within 90 days, you won’t be able to retain them,” Frank said. 

To overcome this, Frank suggested rewarding behaviors like booking meetings or achieving a milestone you want to capture versus paying out on closed/won deals. 

How to hire a freelance sales rep

Ready to hire a sales freelancer? Follow these best practices.

First, before you hire a 1099 sales rep, determine what you want to achieve.

Then, based on your goals for your engagement with the freelance sales rep, you need to identify the key traits of an ideal candidate. For example, you might consider:

• A seasoned sales rep with experience selling products or services similar to yours with an established network of prospects they can contact
• Somebody with an established track record of success in yours or a similar industry
• Excellent communication skills
• Agreed-upon rates upfront

From there, decide where you will look for your freelance sales rep.

There are various places to look for the right professional to fulfill your requirements. Where you look will depend partly on the product or service you want to sell and your goals.

A few examples of where to find freelance sales reps include:

SalesStar, where you can work with Frank and his team to find the best rep to meet your needs and how to set up the best possible model.

Other options include agencies like Patrice and Associates or sales outsourcing companies like TheSalesConnection.com, Exceeders, or CommissionCrowd. Plus, there are job boards such as LinkedIn and Upwork where you can advertise your requirements.

Should you hire a freelance sales rep?

Freelance sales reps are a great way to scale your business or meet short-term selling requirements.

If your sales cycle isn’t too long, there are more benefits than drawbacks. And for a small, growing business, contract salespeople are paid straight commission is undoubtedly a huge plus.

Consider your goals before hiring a 1099 salesperson, and create a list of essential attributes to simplify your search. These steps will help you find the best rep to fulfill your selling needs.

Lastly, if you contract a sales team, use QuotaPath to run sales compensation management more effectively. 

Start a free trial or schedule time with our team for help figuring out your sales models and compensation structures.