Setting up sales team structures at startups is tricky.

“Going from (a sales team of) 1-100 is really hard,” according to David Baga, CRO of Lyft. “The struggle is constant and rewarding.”

It’s not as simple as hiring top sales talent and having them sell your product. There is much more involved than that.

You’re still establishing product/market fit, who your ideal audience is, and the best ways to reach them. You need to run experiments to identify what works regarding demand generation, outreach messaging, rep types, and sales team structure.

Further complicating matters, things continuously shift and evolve, making it necessary to adjust based on what you are learning in real time.

Your startup’s sales structure selection affects all aspects of sales, including lead generation, conversion rate, and speed to close. And as conditions change along the way, it’s important to recognize when to adjust your sales organization. Otherwise, you risk sales stagnation and customer dissatisfaction.

So, if you’re trying to figure out the best sales team structure for your startup, we’ve got you covered.

Factors that impact sales team structures at startups

There is no one-size-fits-all sales team structure. Consider the following factors to build the best sales organization for your business:

Stage of growth

Your stage of growth influences your needs and requirements. Early on you’re still working through product/market fit and determining the best way to reach your ideal customer. Where you are on your journey can dictate available resources, staffing requirements, and your need for flexibility.

Product/service

The complexity and variety of your products or services influence your sales team structure and team member selection.

More complex or diverse products may require highly specialized sellers to ensure a greater understanding of what they are selling.

Sales motion

The length of your sales cycle and how you sell your product affect your sales team structure. A transactional sale involving only one buyer requires a different type of sales organization than a more complex sale to a buyer team that necessitates collaboration and communication for success.

Account sizes

Selling to enterprise accounts is different than selling to small businesses. So, it’s common to structure sales teams based on account size. This enables reps to better understand the needs, challenges, and concerns of their specific prospects and sell more effectively to them.

Geography/market/territory

Consider the geographic distribution of your customers and how you plan to designate territories. Sometimes, it makes sense to group customers by geography if in-person engagement is needed to sell your product. However, you can divide territories based on geography, company size, industry, or alphabetically.

The market you are in may influence the sales team structure as well. You may want to look at successful competitors to see what’s working for them. You don’t necessarily want to duplicate what they are doing, but you can use it to reduce the experimentation needed as you get started. Then, you can adjust it to suit your needs.

Budget

Budgetary considerations are a key factor. Sales team costs include salaries, commissions, training, and sales tech. And a bigger sales team isn’t necessarily better. Sometimes a lean, scrappy, cost-effective team allows you to evolve and scale your sales team more effectively.

Common sales team structures for startups

Now for some popular sales structures to consider:

The island

This sales structure, commonly used in traditional sales operations like real estate or financial services, gives sales reps minimal supervision. This sort of sales team includes a team of individual sales reps reporting to a sales manager. Sellers in this model are responsible for the entire sales process from lead generation to the close.

This structure is best suited for simple sales processes for products requiring one or two calls to close the deal. This structure has the potential to work in various industries but limits brand messaging control due to the inherent rep independence.

The assembly line

An assembly line sales structure got its name by imitating manufacturing. As the name would indicate, each rep on a team specializes in one aspect of the sales process and the team members report to the sales manager.

A team of this sort might include:

• Qualifiers, a.k.a. Sales Development Reps (SDRs)
• Closers, a.k.a Account Executives (AEs)
• Farmers, a.k.a. Customer Success Managers (CSMs)

As a lead advances through the sales process, the prospect is handed off to the next sales rep on the “line.”

This structure creates a predictable business flow, makes identifying issues and adjusting accordingly easier, and is efficient. As you’re getting started, the biggest challenge here is initially having an insufficient number of reps. To overcome this challenge, break up the sales cycle differently across the reps until you can expand your team.

The Pod

The Pod sales team structure is like the “assembly line” structure, but the entire team works collaboratively and communicates continuously instead of individual team members working in isolation. These pods are tight-knit groups that are customer-centric. 

So, instead of SDRs competing within your organization, teamwork is developed within each pod, and individual pods compete with one another as your salesforce grows.

Pods tend to develop stronger customer relationships, and each pod can focus on a different customer type, product line, or geography. Plus, pods tend to be more flexible and adaptable as conditions evolve.

Team variations

The island, assembly line, and pod sales team structures can be further adapted to your specific requirements as follows:

Geography/Territory

This focus allows individual sales reps or teams to learn the nuances of their specific geographic area or territory. They develop stronger relationships with those in their area and gain a deeper knowledge of competitors in their assigned region.

Assessing rep performance based on the potential of their market can be easier in a geography/territory structure but can be isolating for individual reps functioning in an “island” type team structure.

Product/Service Line

A sales team structure based on product or service lines makes sense when diverse offerings exist. This structure enables reps to develop a deep knowledge and expertise in their specific products, allowing them to communicate the value and use cases more effectively to potential clients to close more business.

Customer/Account Size

Setting up sales teams based on customer account size is a popular approach. This simplifies processes like hiring, training, and compensation.

Selling to SMBs is vastly different than selling to enterprise accounts because these businesses are organized differently and have different goals, buying processes, and budgets.

Industry/Vertical

Like many of these variations, an industry/vertical structure enables reps on these teams to become more deeply knowledgeable of their area of focus. These sellers are better equipped to position your offering meaningfully to prospects and have a deeper understanding of potential use cases.

Best practices to keep in mind when structuring

As you implement your selected sales team structure, remember these best practices to boost your success.

Principle 1: Understand the company’s goals and objectives.

The sales team structure should be aligned with the company’s overall goals and objectives. This structure acts as the roadmap for achieving them.

For example, if the company aims to grow revenue quickly, the sales team structure should focus on generating leads and qualifying prospects.

Principle 2: Consider the company’s product or service.

The sales team structure should be tailored to the company’s product or service.

For example, if the company’s product or service is complex, the sales team structure should include technical sales reps who can understand the needs of their target customers.

Principle 3: Be flexible.

The sales team structure may need to be adjusted as the company grows and changes.

For example, if the company starts to sell to a wider range of customers, the sales team structure may need to be expanded to include more specialized sales reps.

Principle 4: Invest in training and coaching.

Sales reps are the face of the company, so it is important to invest in their training.

Make sure they have the knowledge and skills they need to be successful. Research by CSO Insights shows that reps who receive sales training and consistent coaching achieve 32% higher win rates and 27.9% improvement in quota attainment. And these results help you hit your growth numbers.

Principle 5: Create a comp plan fit for a startup and provide visibility into sales, attainment, and commission progress.

As your business scales, you don’t want to adjust your comp plans continually at every stage. So, keep your plans as simple as possible.

The key is to optimize to drive desired sales behaviors, but don’t change the plan every time you hire a new sales team member. Save the changes for major growth milestones, like when you have a salesforce of 50 sellers.

Sales reps are happiest when they know how much to expect in their paycheck. Keep reps motivated by giving them the visibility to track their attainment of personal and company goals.

Choose your sales team structure

Selecting the best sales team structure for startups is essential but tricky. Start by considering your growth stage, offering, sales motion, account sizes, and budget. Then, leverage them to guide your choice of sales team structure. As you’re implementing your new sales organization, remember to remember our best practices to increase your success.

Need help creating your first comp plan fit for a startup? Check out this resource.

Then, see how QuotaPath can help you save time by automating commission tracking and payouts of sales compensation. Sign up for a free 30-day trial with QuotaPath, or schedule a chat with a team member.

This is a guest post on aligning compensation plans with business objectives written by RevPartners, a management and consulting firm that designs and executes revenue engines to supercharge their customers’ growth with services such as HubSpot Onboarding, RevOps as a Service, and SEO/PPC. Through automation and tools, the RevPartners team orchestrates, optimizes, and reports on their client’s marketing, sales, and operations processes. RevPartners’ mission is to democratize revenue operations by making it accessible, consumable, and actionable in HubSpot.

It’s vital for companies to have harmony between their compensation plans and business objectives.  But this intricate and often complex task is not an overnight process. To do it right, companies need to take a holistic approach and blend strategic planning and execution. 

Let’s take a look at some of the most important objectives for a business and how compensation plans can align accordingly.

Customer Acquisition Cost 

One metric to consider is customer acquisition cost (CAC), which speaks volumes about a company’s health and efficiency. The lower the CAC, the more profitable the company is.

When calculating CAC, it’s important to consider all the expenses associated with acquiring new customers. This includes marketing costs, advertising campaigns, sales team salaries, and any other expenses directly related to customer acquisition. Companies can gain valuable insights into their overall financial performance by analyzing these costs.

Balancing CAC with employee compensation is essential. Pay structures that incentivize employees to drive down the cost of acquiring new customers can enhance a company’s profitability. However, ensuring that such incentives do not lead to compromised quality or customer experience is crucial.

Examples of how to align comp plans to CAC

Performance-based bonuses

Perhaps the most basic example is when companies offer bonuses based on the ability to bring in customers at a lower cost.   

Referral programs

Companies can create/introduce employee referral programs that reward employees for referring customers who are more likely to be acquired at a lower cost. 

Customer quality metrics

Companies can measure the quality of customers brought in by employees and align compensation with the long-term value of customers, ensuring that employees focus on acquiring customers who are likely to stay and spend more.

Long-term goals

When companies design compensation plans that consider the long-term impact of customer acquisition, employees could earn more if the customers they bring in have low acquisition costs and contribute to the company’s growth over time.

Gross revenue retention

Gross revenue retention (GRR) is another indicator of business health. A high GRR means that a business retains its revenue, irrespective of its growth. Ensuring that compensation plans encourage practices that enhance GRR is critical.

Examples of how to align comp plans to GRR

Renewal performance bonuses

When companies provide bonuses to sales teams for successfully renewing contracts with existing customers, it encourages them to focus on acquiring new customers and retaining the ones they already have.

Customer health metrics

When compensation plans are tied to customer health metrics (e.g., usage frequency, satisfaction scores, engagement levels), employees who contribute to improving these metrics can earn additional compensation.

Retention-linked bonuses

If companies design bonuses that are tied to specific retention targets, teams or individuals who meet or exceed these targets can earn extra compensation.

Reducing customer complaints

Companies can create compensation plans encouraging teams to promptly and effectively address customer complaints. Fewer complaints can lead to higher customer satisfaction and retention.

Predictive analytics bonuses

When employees use predictive analytics to identify customers at risk of churning and successfully intervene and prevent churn through targeted efforts, they can receive bonuses.

Net revenue retention

Distinct from GRR, net revenue retention (NRR) considers the revenue growth from existing customers. An ideal compensation plan should both safeguard existing revenues (GRR) and cultivate growth (NRR).

Regarding NRR, it’s important to understand the significance of nurturing and expanding relationships with existing customers. By focusing on retaining and growing revenue from these customers, businesses can establish a stable foundation for long-term success.

Examples of how to align comp plans to NRR

Expansion revenue incentives

Companies can design compensation plans that provide additional rewards to sales and account management teams when they successfully upsell or cross-sell additional products or services to existing customers.

Customer satisfaction metrics

When companies link compensation to customer satisfaction scores or feedback, teams that maintain high customer satisfaction levels are rewarded for their efforts to nurture positive relationships.

Customer education success

Companies can reward employees who effectively educate customers about the full range of offerings and how they can benefit from them. This can lead to customers using more services and products, increasing their value.

Customer feedback utilization

Companies can give bonuses to employees who actively gather and apply customer feedback to improve products, services, and overall customer experience. This showcases a dedication to nurturing relationships.

Customer success milestones

Companies can create compensation milestones based on the length and strength of customer relationships. The longer and more successful the relationship, the higher the compensation.

Customer lifetime value

Customer lifetime value (CLV) is a metric that businesses use to understand the net profit they can expect to generate from a customer over the entire duration of their relationship. Companies can make informed decisions about resource allocation, marketing strategies, and customer retention by analyzing CLV. The higher the CLV, the more beneficial it is for the company, as it indicates a greater return on investment.

Calculating CLV involves various factors, such as the average purchase value, purchase frequency, and customer lifespan. By considering these variables, businesses can gain insights into the potential value of each customer and make strategic decisions accordingly.

However, understanding CLV is important for financial forecasting and plays a significant role in shaping compensation design and employee motivation. 

Examples of how to align comp plans to CLV

Tiered commission structures

Companies can implement tiered commission structures that reward higher commissions for customers demonstrating greater CLV. This encourages employees to prioritize customers who are more likely to make repeat purchases and remain loyal over time.

Profit sharing

Companies might consider implementing profit-sharing plans that tie a portion of employees’ compensation to overall company profitability, which can be influenced by increased CLV. This fosters a sense of ownership and encourages employees to work collectively to enhance customer value.

Long-term focus

Companies can design compensation plans that emphasize long-term gains over short-term wins. This discourages quick, transactional behavior and encourages strategies that enhance CLV over time.

Sales cycle length and velocity

The sales cycle length and velocity significantly affect the rate of revenue generation and cash flow. A streamlined process usually indicates a more efficient team and organization.

Compensation plans that reward employees for shortening the sales cycle and increasing its velocity resonate with business growth. Incentives catering to these metrics ensure the business has a smooth cash flow and remains competitive.

The sales cycle length refers to the time it takes for a potential customer to move through the entire sales process, from initial contact to making a purchase. This can vary greatly depending on the industry, product complexity, and customer behavior.

A shorter sales cycle can have several advantages. First and foremost, it allows for a quicker revenue generation, as deals are closed faster. This can be particularly beneficial for businesses that rely on a steady cash flow to cover expenses and invest in growth initiatives.

Also, a shorter sales cycle can lead to increased customer satisfaction. Customers appreciate efficiency and promptness, and if they can make a purchase or get the desired solution without unnecessary delays, they are more likely to be satisfied with their overall experience.

Conversely, velocity refers to the speed at which deals move through the sales cycle. It measures how quickly prospects progress from one stage to the next, indicating the overall efficiency of the sales process.

A high velocity suggests that deals are progressing smoothly and efficiently, with minimal bottlenecks or delays. This can be achieved through effective lead nurturing, clear communication, and a well-defined sales process that eliminates unnecessary steps or redundancies.

Examples of how to align comp plans to sales cycle

Time-based incentives

Companies can introduce incentives that reward sales representatives for closing deals within a shorter time frame. This could be in the form of bonuses or commission multipliers for deals closed ahead of schedule.

Early progress bonuses

Companies can offer bonuses or rewards for hitting certain milestones early in the sales cycle. This approach encourages sales reps to maintain momentum and engagement throughout the process.

Win-win commission structures

Companies should design commission structures that balance sales cycle length with deal value. For example, higher commissions could be offered for shorter sales cycles, but also consider factoring in the overall revenue generated.

Lead scoring

Companies can introduce a lead scoring system that helps sales reps prioritize leads with higher potential to close quickly. Compensation can be tied to successful conversions of these high-priority leads.

Wrapping up

Creating a balance between business objectives and compensation plans involves continual monitoring and fine-tuning to determine what works best for the organization and its employees.

By focusing on the metrics identified above and aligning them with compensation plans, businesses can drive profitability, growth, and employee satisfaction concurrently.  When compensation plans are in tune with business objectives, they pave the path for a win-win situation.

Looking for the right company to help align your sales compensation plans to your business objectives?   Look no further than QuotaPath!

To learn more about RevPartners, visit revpartners.io.

Boards are increasingly calling for improved business efficiencies today. This should come as no surprise after a bank crisis, massive layoffs, and a recession still looming on the horizon.

Many companies have shifted their focus to shore up their growth efforts via customer retention and related metrics for efficiencies, including customer acquisition costs (CAC), increased customer lifetime value (LTV), net revenue retention (NRR), and gross margin.

Adjusting your sales compensation plan supports these goals by incentivizing the right sales behaviors and discouraging costly actions.

This post reviews 10 compensation levers to help you drive business efficiencies and meet your organizational goals.

10. Comp on highest onboarding-related NPS scores

One of the keys to retention is successful onboarding. In fact, 86% of survey respondents said they’re more likely to remain loyal to a business that invests in onboarding. To encourage your customer teams to deliver exceptional onboarding experiences, consider offering bonuses (i.e.: $100) or SPIFs to your customer-facing reps who earn the highest NPS scores tied to onboarding.

9. Bonus on better payment terms

Positive cash flow is essential during challenging times as it provides a buffer against future financial difficulties. To address cash flow in your comp plans, promote better customer payment terms by SPIF’ing reps on deals that sign with Net 30/Net 60-day payment plans.

8. Reward ICP deals with higher rates

Your ideal customer profiles (ICP) are the ones who see the most success on your platform and are the most likely to renew. These customers tend to have greater LTV and future upsell/cross-sell potential. To promote retention and contain CAC, offer higher commission rates for any new business deal that aligns with your ICP.

7. Reward SPIFs or kickers for products that generate higher gross margins

At organizations that offer multiple products, you’ll often find that some products generate more profit than others.

To motivate your team to sell and upsell those ones, pay your team higher rates on new business or renewals, including products that yield higher gross margins.

6. Comp as high (or higher) on upsells

Many companies offer lower commission rates on upsells than net new business. But during an economic downturn, upsells are one way to continue to grow your business. If a key metric for your business this year is NRR (net revenue retention), you should pay as much as new business, if not more, for upsells.

For example, if you pay 10% on new business, consider paying 12% on upsells.

5. Use decelerators on deals that threaten gross margin

As much as we’d love to think every deal is good, that’s not always true. Some deals fall outside of ICP and require intense technical assistance and investments to ensure a successful implementation. This increases onboarding costs and drains valuable resources.

To solve for gross margin and to encourage your reps to focus on the deals with more efficient onboarding, pay a decelerated commission rate on deal types that require more resources.

4. Award a bonus or higher commission rate on non-discounted deals

Who here has a discount-happy sales team? Let’s promote full-price deals by adding an extra $100 bonus (for example) on top of every deal that closes without a discount.

Incentivizing your sales team to sell at full price encourages them to focus on selling value and improves CAC.

3. Shift commission payments to invoice payment

Is cash flow a concern? If so, and if you’re paying commissions at the time of contract signature, switch to commission payout eligibility at invoice payment.

This reduces chargebacks and enables you to issue commission payments with funds collected instead of funds anticipated.

2. Incentivize early renewals

Early renewals shore up revenue and prevent unexpected dips in cash flow due to delayed renewals.

To address retention and improve GRR, offer fixed bonus rates for renewals that AMs bring in early. For example, give $150 on renewals that close 90 days ahead of schedule and $100 for those 60 days in advance.

1. Pay higher rates or SPIFs on multi-year deals and renewals

Multi-year contracts are your biggest ticket to predictable revenue on the renewal side and on the new biz size. The best way to get your team to present multi-year options is to pay them more when they sell them.

Up your rates or bonuses for any contract of two years or higher. Check out these compensation templates to help: Single Rate Commission with Contract Term Multiplier and Commission with Multi-Year Accelerators.

Pull comp levers to improve business efficiencies

Adjust your compensation plans with these levers to achieve business efficiency improvement where you need them most. You’ll stabilize your revenue, minimize risk, and encourage business growth.

To issue changes to your comp plans quickly and automatically track the outcomes, check out QuotaPath for free.

Sync your CRM, like HubSpot or Salesforce, build your comp plan in a few steps, or use one of our compensation plan templates, and invite team members to begin tracking compensation immediately.

For our HubSpot customers, we have continued to direct time and resources into the HubSpot commission tracking integration to ensure a seamless experience in calculating and paying sales commissions.

It has paid off. 

Since 2021 (when we launched the integration), we have earned the most installed sales compensation tool on the HubSpot marketplace.

And today, HubSpot named QuotaPath one of 20 Essential Apps for Sales.

Learn more about our partnership and integration below.

How QuotaPath enables HubSpot commission tracking

QuotaPath ingests data directly from HubSpot to provide a transparent and accurate sales compensation source of truth for Sales, RevOps, and Finance teams. 

With QuotaPath and HubSpot:

• Automate commission tracking
• Provide team-wide visibility into sales compensation
• Build sales compensation plans effortlessly in-app with a flexible plan builder
• Align compensation plans to financial goals 
• Motivate and rally selling behaviors around business targets
• Streamline earning calculations, deal approvals, payments, and amortization of commissions

Our integration also includes quick implementation times to set up fully, real-time data syncs, customizable mapping of fields, and rep-level commissions viewable directly in HubSpot. We wear the “HubSpot Certified App” proudly, too. 

“When I’m reviewing commissions in QuotaPath, I’m not checking to see if they’re right in QuotaPath. I’m checking to see if the deals and fields in HubSpot are correct. Knowing that the data comes from HubSpot is a huge peace of mind. I can trust it,” said Katie Cooper, Muck Rack’s Senior Business Manager of Business and Data Operations.

How the HubSpot integration works

We mentioned earlier that our HubSpot integration involves a pretty seamless setup. In fact, it’s as easy as a three-step guided process. 

First, sync QuotaPath with HubSpot in one click. This can be done directly within QuotaPath. 

Next, map your compensation plans to your data. Once your HubSpot data begins feeding into QuotaPath, you’ll need to train QuotaPath which HubSpot fields map to your QuotaPath fields. 

Then, assign plans to the variable-earnings members of your team. 

Our setup guide is available if you need more help on this.

Other Essential Apps for Sales

We’re thrilled to be in such great company alongside sales tech staples.

Check out the full list of HubSpot’s Essential Apps, which includes:

• Gong
• Pandadoc
• Aircall
• Ebsta
• Qwilr
• Intelligence360 (MediaFly)

Getting started

We want you to have full commission transparency with your HubSpot data – across all departments in your company. If you want to learn more, schedule a call with our team or start your free trial of QuotaPath today.

What did LinkedIn rank as the most in-demand job of 2023?

Head of RevOps. 

Revenue operations (RevOps) is a rapidly growing field responsible for aligning sales, marketing, and customer success teams across the customer lifecycle. You’ll often hear many RevOps leaders classify their work into these three buckets: people, processes, and data. 

As part of the people focus, one of the trends we’ve noticed is RevOps leaders joining sales candidate interviews, which makes a lot of sense. RevOps presence in sales interviews creates a great opportunity to gauge the candidate’s understanding of the sales process and the metrics that matter most in driving revenue. 

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You can do this by asking candidates questions that assess their knowledge of these areas and their ability to think strategically about achieving their targets. 

Including RevOps in the sales interview process is also a good idea to ensure the candidate is a good fit for the company’s culture. RevOps can ask questions about the candidate’s experience with cross-functional collaboration and ability to work effectively with people from different departments, particularly Marketing, Customer Success, and Product.

Additionally, RevOps can help identify any potential gaps in the candidate’s skills or knowledge and offer suggestions for how the candidate can improve their skills or knowledge in these areas.

We say all this while fully recognizing that RevOps remains a relatively new field. With that in mind, many folks in their first RevOps title are conducting sales interviews for the first time. 

So, to help those of you who will represent RevOps in a sales interview, we curated 15 relevant questions to ask.

15 questions

1. What are the key metrics you track to measure sales success? Asking a sales candidate this question can give you valuable insight into their understanding of sales metrics and their ability to measure success. Can they communicate what their current org.’s metrics are? Can they explain how their compensation plan or sales process aligns to these? The more they can, the higher the caliber of the candidate.
   
2. What do you think about cross-functional collaboration? The candidate’s answer to the question can showcase their:

• Experience with cross-functional collaboration: Have they worked on projects that involved multiple teams? What were their roles in these projects?
• Approach to cross-functional collaboration: Do they believe in a “siloed” approach, where each department works independently? Or do they believe in a more collaborative approach, where teams work together to achieve common goals?
• Communication style: How do they communicate with people from other departments? Are they clear and concise? Do they listen effectively?
  

3. How have you leaned on data in the past to inform your decisions or strategy? Their response will give you a peek into how much (or little) they value the importance of data-driven decision-making. Maybe they A/B tested email copy for outreach or looked into what times of day they’ve had the most success getting replies. By asking them for examples, you can gauge their experience diving into their data.
   
4. How would you find 10 new leads today? This is one of my favorite questions and gives you insights into their lead-generation skills, creativity, proactivity, problem-solving skills, knowledge of the industry, and confidence. You’ll learn a lot about the person in how they react to answering this with little to no context.
   
5. How would you enter the 10 leads into your pipeline for consistent follow-up? If you ask question No. 4, this should be the next question. Ask this one to get a pulse on the candidate’s sales process. Their answer offers insight into how they typically organize and track their leads, their attention to detail, their willingness to follow up with leads, and how they leverage their CRM and other tools to make follow-ups more efficient and consistent. 

6. What do you think about a lead versus a contact versus an account? A great way to test your candidate’s sales terminology is by asking them to discuss how they treat and define a lead, contact, and account. If you’re hiring for a less senior role, I’d ask this question to measure just how green they are in their sales career.
   
7. What are some key admin tasks you complete daily to be successful? For a glimpse into the candidate’s time management skills and attention to detail, ask them questions on sales admin tasks, like updating accounts and opportunities, scheduling follow-ups, creating new contacts, etc.
   
8. Have you worked with RevOps in the past? If so, how did they support you? What would you like to see more of from RevOps at your next organization? Learn more about the candidate’s experience in working with RevOps and how they understand the value RevOps brings. This is also a great opportunity to sell your organization and what your RevOps team delivers if they had a poor experience or never worked with RevOps.
   
9. What’s an ideal customer profile, and what do you think ours is? This question again tests their knowledge of industry terms and how much research they’ve done on your organization. It also allows them to let their curiosity and honesty shine through if unfamiliar with the term.
   
10. How does your approach to a sale change when it’s a short cycle compared to a long one? The candidate’s answer to this question will reflect their adaptability and showcase their experience.
    
11. Have you asked a closed/loss prospect why they didn’t move forward? What did you take from it? The response to this question, assuming the first answer is “yes”, will show you good qualities, such as accountability, selflessness, humility, and pro-activeness. Reps who put their egos aside to learn the why behind the “no” are interested in better positioning the company and themselves in the future. All green flags.
    
12. What’s your least favorite part of the sales process and why? You’re looking for honesty and a candid answer that isn’t riddled with excuses and complaints. This response sheds light on areas where RevOps can assist, and for you to highlight how you can help them overcome their least favorite part. 
    
13. What sales technology have you used in the past? What did you like about it? What would you have changed about the tech stack? Not only will this question reveal what platforms they have experience with (in case that’s not evident on their resume and/or you forgot to look ahead of the interview), but it will also show you their level of tech competence. The more specifics they can provide about their likes and what they would change, the more likely they will be heavy users (and ambassadors) of their previous tech stack. 
     
14. How do you learn and get better at your role?  A question focused on self-motivation for improvement will demonstrate how coachable they are and how independent they are to own their training and development versus requiring a ton of support and guidance from leadership.
    
15. How do you approach forecasting? This question will show you if they care about their forecast or have been held to it in the past. For greener reps, this will also test their sales knowledge. 

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What other questions would you ask?

About QuotaPath

QuotaPath partners with revenue teams from fast-growing SaaS companies to align RevOps, Finance, and Sales leadership over their sales compensation strategy. By providing visibility and insights into commissions, forecasts into attainment and earnings, and guidance in designing and implementing compensation plans, QuotaPath is the only commission tool built with custom views and usability for every stakeholder tied to variable pay. 
Start a free 30-day trial of QuotaPath (no credit card necessary) to run commissions more efficiently.

Sales quota management refers to the process of setting, tracking, and achieving specific sales goals for certain periods of time. It is a critical part of sales management and can be used to motivate sales reps, boost and measure performance, and reward sellers who reach their goals.

The best sales quotas are realistic, backed by math, and aligned with company goals. 

And, the worst? 

Reps will say the worst kinds of quotas are restrictive, unrealistic, and therefore demoralizing. Most leaders will agree with the reps while also classifying bad quotas as those that they’ve set too low, which can lead to complacency. 

So, how can you find the right balance between a quota that pushes reps to achieve individual and company targets while ensuring that they’re actually attainable? 

The key is in your sales quota management strategy. 

Below we look at common terminology to set sales quotas, key components of effective sales quota management, and sales analytics to drive selling behaviors. 

Understanding sales quotas: definitions and purpose

First, let’s review the basics of sales quotas.

What are sales quotas? Sales quotas are quantitative goals set for sales reps or teams over a period of time, like monthly, quarterly, or annually.

They are typically expressed in terms of revenue, units sold, new customers acquired, or sales activities, such as the number of new opportunities. Quotas are an important part of sales management because they provide sales reps with clear goals to work towards that help the entire company reach its financial targets. 

Sales managers also use quotas to track their team’s performance and identify areas where they need to improve.

Quotas by role: Quotas typically differ by role. For instance, reps selling to enterprise clients will follow longer quotas with larger quotas. That’s because enterprise deals take longer to close and are usually much higher in value. 

Where an enterprise account executive might have one quota tied to annual recurring revenue, a sales development representative could have two or even three quotas. We’ve seen SDR sales compensation plans that have a quota based on number of demos booked, plus a quota tied to a revenue target.

Meanwhile, account managers usually have quotas tied to gross or net revenue retention — or both.

Quota attainment: A sales quota is the total number that the seller should aim to achieve while the attainment of quota is the percentage of progress toward that goal. This metric is especially useful for sales leaders to review to understand who is overperforming or underperforming on their team.

On-target earnings (OTE): To properly set quotas, you also need to have a solid understanding of on-target earnings, more commonly referred to as OTEs.

This number represents the total compensation a rep can expect to earn should they achieve 100% of their quota. It consists of the rep’s base salary and variable pay. The split between salary and variable pay is called paymix, which in SaaS is often 50:50. 

Additionally, in SaaS, your quotas should sit about 5x higher than your OTEs. However, this number fluctuates between 3x and 8x depending on your organization’s size. (Larger companies that pack a lot of resources and marketing spend behind each deal typically have larger OTE multipliers closer to 8 or 9x.)

How to set quotas

Before you can manage sales quotas, you first need to set them. 

That’s where that OTE multiplier comes in. You can set your quotas by using our recommendation above or finding a healthy quota:OTE ratio using our free calculator. 

You can also work from the top down by taking your company-wide new business goal for the year and dividing it by the number of reps on your team. Then, divide by your quota frequency, which will depend on your sales cycle. 

For instance, a quarterly quota makes sense if your average sales cycle lasts about 90 days. If it’s less than that, shoot for a monthly one. Anything significantly longer than 90 days should be set for annually. 

Just remember to review it. Adjust quotas as you learn more about your business and as the market changes. 

Learn more about how to set sales quotas in this blog.

Importance of sales quota management

Now, let’s talk about the importance of sales quota management.

Sales quota management is the process of setting, tracking, and managing sales goals for individual sales reps or teams. It’s essential for any sales organization, especially for driving results and informing future compensation strategies.

One of sales quota management’s key benefits includes its impact on sales productivity. 

Providing sales reps with clear goals to work toward can help them stay focused and motivated. This also helps to increase rep accountability because they are held to a target that often impacts their earnings potential. 

Additionally, the performance (or lack thereof) of quotas can help forecast future revenue goals, which makes it easier for leadership to plan for future growth and make better decisions around resource allocation. 

Plus, when you align quotas with the company’s overall goals, you ensure reps focus on activities that drive the most important metrics of your business. 

Key components of effective sales quota management

But, to make sales quota management effective, several key components must be considered.

First, you have to commit to evaluating your quotas and possibly adjusting them throughout the year. 

How to evaluate sales quotas

Look for the following sales performance metrics to indicate bad quotas.

Automate quota tracking

Setting up automated quota attainment tracking will make evaluating quotas easier for you and more accurate. 

You can use a sales compensation system like QuotaPath to track commissions as well as attainment progress at the individual and team levels. This can help leadership prioritize where to spend their coaching time, especially if reps are just shy of achieving quota or if a rep is consistently underperforming. Plus, it’ll save your team time and the headache of manually tracking and calculating deals and earnings. 

Automating the process can:

• Improve tracking accuracy
• Provide insights into team performance
• Motivate your team
• Inform better decision-making around resources, sales team strategy and compensation.

Provide reps with visibility to quota progress

You can also use an automated tool to give your reps visibility into their progress.

Studies have shown that when you consistently check daily progress toward a goal, you’re more likely to reach it.

Think about weight loss. 

If you check your weight daily while on a new exercise program and see the small “gains” over time, you’re more likely to stick to the plan until you reach or surpass the target.

The same applies to quota attainment.

When you give your reps visualizations filled with real-time and forecasted progress, they can see how close they are to the goal or how the next deal pushes them over the finish line. This helps motivate them to hit their targets. It also helps hold them accountable by helping them think through, “Am I doing everything I can today to help me reach my goal tomorrow?” And, “If I get a deal in this week, then I only need one more to get me to my goal.” 

Leveraging data analytics for sales quota management

How else can data analytics impact your sales quota management, you ask?

In sales quota management, data analytics can track progress, identify trends, and make better decisions.

One way to ensure the data is updated and accurate is by syncing your customer relationship management (CRM) to whatever automated solution you use to track quota progress. QuotaPath, for instance, syncs with CRMs such as HubSpot, Salesforce, Copper, Pipedrive, and more so that deal data comes directly from the team’s direct source of truth. 

QuotaPath’s insights can help you measure how successful your compensation plan is at driving your reps toward achieving quota. 

This, in turn, drives efficiency across your process.  For example, if you pay a higher commission rate on multi-year contracts that includes quota retirement, you can see how many reps take advantage of that compensation lever. 

Use data analytics for sales quota management to: 

• Track progress: Track progress towards quota attainment. This can be done by tracking individual sales rep performance, team performance, or overall company performance.
• Identify trends: Identify trends in sales performance by tracking historical data and looking for patterns.
• Make better decisions: Data analytics can be used to make better decisions about sales and compensation strategy and resource allocation. 

Here are some additional tips for leveraging data analytics for sales quota management.

By following these tips, you can leverage data analytics to improve your sales quota management process.

To learn more about how QuotaPath can support sales quota management, connect with our team, or log in with a free 30-day trial to see for yourself. 

FAQs:

What are the benefits of automating sales quota management processes?

There are many benefits to automating sales quota management processes. Here are a few of the most important ones:

Increased accuracy: Automated quota management systems can help to ensure that quotas are accurate and up-to-date, which reduces the risk of inaccurate sales forecasts and missed targets.  

Improved efficiency: By automating quota management, you can free up sales managers and reps to focus on other tasks and increase productivity and efficiency as a result.

Improved visibility: Real-time visibility into quota progress helps sales leadership make adjustments, prioritize coaching, and create a culture of goal setting. 

Build sales strategy alignment: Having a source of truth for quota attainment progress helps to facilitate collaboration between sales managers and reps and build alignment as everyone works toward the same goals.

Sales team motivation: Giving reps a system to track their quota progress means they will always be up-to-date on how they’re trending toward their goal. This helps to build rep ownership of their performance while keeping them focused and motivated. 

If you are looking for ways to improve your sales quota management process, then automating it with a tool like QuotaPath is a great option. 

How can companies overcome challenges in sales quota management with SaaS solutions?

SaaS solutions such as QuotaPath can help companies overcome challenges in sales quota management by automating quota management and providing real-time visibility into progress. 

For instance, if you have a sales compensation plan that includes commission tiers based on quota attainment, you need to know when the rep crosses into the next tier to track and pay correctly. That, and how much more they earn upon doing so. A sales quota management system can provide visibility to the rep and leadership to show how close they are to unlocking higher earnings while also automatically tracking the calculations. 

Plus, as an organization scales and additional quotas follow, SaaS solutions can save time from manually calculating and tracking quota management. This makes adding or removing employees, implementing compensation plan changes, and providing transparency to each rep and stakeholder tied to the compensation and quota process easier. 

Overall, SaaS solutions can be a valuable tool for companies that are looking to improve their sales quota management process. By automating the process, providing real-time visibility, and being flexible and scalable, SaaS solutions can help companies to overcome the challenges of sales quota management and achieve their sales goals.

How does quota management increase sales productivity?

Quota management increases sales productivity by enabling teams to set clear goals with progress toward those goals widely visible. It also helps leaders and reps to manage performance, motivate sales reps, and improve sales efficiency.

In fact, we found that companies that use quota management systems are 25% more likely to meet their sales goals. Plus, a study conducted by Salesforce found that companies that use quota management tools are 10% more likely to increase their sales revenue.

QuotaPath’s Auto Commission Rate tool calculates and sets rates on the backend, so you don’t have to. No formula required.

While commission rates are simple to calculate with single-rate commissions, the same can’t be said for multiple rates. 

Variable pay splits, multipliers, and a growing sales team make rate calculations increasingly difficult. Plus, they often call for extensive formulas, which can confuse your reps when they try to understand their compensation plans. 

Today, we’re excited to share that QuotaPath will now calculate rates for you. We’ll show your reps exactly how they are calculated — without requiring math from your end. 

Called Auto Commission Rates, this feature lives in our Plan Builder tool. 

Now, when you add or modify compensation plans using our intuitive Plan Builder, you will start by filling out plan requirement questions, like if the plan contains a single rate or multiple rates and how long quota cycles are.

From there, you will add inputs such as attainment percentages, multipliers, and variable pay splits. These inputs trigger the calculation on the backend by QuotaPath, which removes the need to build complex formulas to calculate earnings. 

That’s it. 

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!

— Claire King, RevOps Associate Director at Muck Rack

We’ll do the rest to make the calculations viewable and digestible to your team to foster comp plan understanding and buy-in. 

Plus, our Plan Verification tool, which enables in-app distribution of compensation plans for rep signature collection, will now include this data to provide reps with a complete picture of their entire compensation plan. 

Get started with a free trial today, or learn more by scheduling time with our team.

About QuotaPath

QuotaPath partners with Finance, RevOps, and Sales teams to manage sales compensation more efficiently. With a library of free resources to inform compensation plan design and strategy and an automated commission tracking system, QuotaPath aligns teams, saves time, and increases earnings accuracy. 

Commission management includes the process of tracking, calculating, and paying commissions to sales reps. It is an essential part of any sales compensation plan with the ability to make a big impact on the motivation and performance of sales reps, as well as those who oversee compensation.

Take Executive Vice President of Revenue Operations Dennis Dube, for example. 

Dennis leads EverView’s 100+ person sales team. Today, they use QuotaPath to set up commission structures and automate commission tracking. 

But that wasn’t always the case.

Before implementing our help, Dennis and his team calculated commissions manually for 80 reps under one of 35 compensation plans.

“At the time, sellers didn’t know how much their paychecks would be until they received those checks,” Dennis said. 

What’s more, a survey revealed that his reps spent two hours per week trying to track and calculate their earnings in Excel. Plus, half of them didn’t understand their comp plans or how they earned commissions.

These survey results, and a text message on a Saturday that read “If you don’t approve a commission calculation within the next hour, then our sellers won’t get paid on time,” led Dennis to QuotaPath. 

“It was then that I knew it was time to get a better system in place,” Dennis said.

What’s more, after adopting QuotaPath, EverView had a record sales year. 

A well-designed commission management system can help to ensure that sales reps are motivated to sell, and that they are compensated on time for their efforts. 

Solutions like ours can also help to track the effectiveness of the sales compensation plan and showcase where adjustments are needed. But maybe even most importantly, it can remove the need for any panic-fueled texts on a weekend for those who oversee commission payments. 

Read on to learn more about commission management.

Commission Management: Understanding the Basics

First, we’ll start with the basics of commission management. 

You should begin your compensation strategy by setting clear goals and objectives that align with your organization’s key north star metrics.

As an example, if gross revenue retention (GRR) is your company’s biggest focus, your compensation strategy should support that across every role. 

In practice, this would look like account executives earning higher commission rates on multi-year contracts and higher bonuses for sales development reps who qualify leads that classify as your ideal customer profile. For account management, you could incentivize GRR by paying higher bonuses or commission rates on early renewals or those that convert from monthly to annually, or annually to multi-year. 

Some other best practices include: 

Free Sales Commission Calculator Template

A free spreadsheet to simplify the commission tracking process. Track what you or your team have earned in 4 inputs.

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Commission Structures

There are several commission structures available to organizations, each designed to drive different behaviors and business outcomes. Here are the most commonly used models:

1. Flat Commission
   Also known as a single rate commission, this is a straightforward approach where reps earn a fixed percentage for every deal closed. It’s simple to administer and easy for reps to understand, but it lacks nuance when it comes to rewarding strategic behaviors or deal quality.
   
2. Tiered or Accelerated Commission
   In this model, reps earn higher rates once they reach certain quota thresholds (e.g., 10% up to 80% of quota, then 12% from 81–100%, and 15% above that). Tiered plans encourage overperformance and align well with growth-stage businesses looking to maximize top-line revenue.
   
3. Revenue-Based or Margin-Based Commission
   Revenue-based commissions incentivize closing large deals regardless of margin. On the flip side, margin-based structures reward reps based on profitability, ideal for businesses prioritizing efficient growth or operating in lower-margin industries.
   
4. Draw Against Commission
   Typically used during ramp periods, reps receive a guaranteed payment (draw), which is later reconciled against commissions earned. Non-recoverable draws offer stability during onboarding, while recoverable draws are treated like advances that must be paid back.
   
5. Milestone or Bounty-Based Bonuses
   Instead of percentages, reps receive fixed dollar bonuses for specific achievements, like bringing in a new logo or selling a strategic product. These are easy to track and can supplement other plans to reinforce key behaviors.

How to Choose the Right Commission Structure: A Step-by-Step Guide

Selecting a commission plan isn’t just a matter of preference; it requires thoughtful alignment with financial strategy, rep behavior, and business goals.

Here’s how to do it:

Step 1: Assess Your Sales Cycle and Revenue Goals

Start with your revenue targets and work backward. Are you focused on rapid ARR growth? Expanding within existing accounts? Boosting cash flow?

• For fast ARR growth: Consider accelerators or new logo bounties.
• For account expansion: Blend in upsell or multi-year contract incentives.
• For cash-focused metrics: Incentivize prepaid or upfront payments.

Step 2: Map Incentives to Deal Types and Roles

Differentiate between roles and motions. An AE closing enterprise deals should be comped differently than an SDR sourcing pipeline.

• AE plans may include multi-tier accelerators and margin bonuses.
• SDRs often benefit from a mix of bonuses for meetings booked and qualified pipeline generated.

Step 3: Balance Motivation and Profitability

While aggressive accelerators can drive revenue, they can also erode margin if not monitored. QuotaPath recommends ensuring total commissions paid on a deal don’t exceed 25% of deal value. Higher rates may indicate comp inefficiencies.

Use reporting tools to monitor your deal-level commission rate and uncover hidden comp costs across overlays (BDRs, SEs, managers).

Step 4: Prioritize Transparency and Rep Engagement

Plans should be easy to understand and track. Real-time visibility into pipeline-to-earnings forecasts empowers reps and reduces disputes. As Thomas Egbert, Head of Finance at Prefect, said:

“The whole point of having generous incentives is to energize the team and not have it be mysterious”.

Step 5: Test and Model Before You Roll Out

Use scenario modeling to simulate outcomes under different rep performance bands. Tools like QuotaPath help forecast commission impact across plans, so finance can see how comp decisions will affect CAC, gross margin, and attainment—before a single dollar is paid.

Streamline Sales Compensation to Drive Revenue Without Overspending

Incentive compensation can be both a growth lever and a financial liability.

For finance leaders, the challenge lies in maximizing the return on every commission dollar, ensuring reps are motivated and rewarded, without inflating the company’s cost of sales.

QuotaPath helps finance teams find this balance by giving them the tools to:

Lower the True Cost of Compensation

When plans are too complex or built in spreadsheets, inefficiencies snowball, leading to costly errors, delayed payments, and rep frustration. By automating plan logic, approvals, and payouts, QuotaPath enables you to reduce administrative burden and increase accuracy, all while staying GAAP-compliant and ASC 606-ready .

Align Payouts to the Metrics That Matter

Paying reps more doesn’t automatically generate better outcomes. Instead, tying earnings to high-margin products, multi-year contracts, or ideal customer profiles helps steer GTM teams toward outcomes that grow the business efficiently. Our platform makes it easy to layer in these levers without adding complexity. More on this below.

Visualize Real-Time Financial Impact

With centralized reporting and CRM-connected dashboards, finance can see commission accruals, deal-level payout rates, and quota attainment in real-time. This visibility means you can prevent runaway comp costs—and spot overpayment risks before they affect your P&L.

Iterate Faster With Scenario Modeling

When revenue slows or priorities shift, waiting until the next fiscal year to update comp plans isn’t an option. QuotaPath’s modeling tools allow finance teams to test new structures against historical data and project their impact before rolling anything out. No more flying blind.

By adopting a platform like QuotaPath, finance can confidently manage compensation as a strategic tool, not just an operational cost.

Key Metrics & KPIs to Track

When finance leaders evaluate the health of their compensation strategy, it’s no longer just about how much is being paid out; it’s about why, to whom, and what outcomes those dollars are driving. The right metrics give you the visibility to manage sales compensation like a business investment, not just an expense line.

Here are the three key KPIs every CFO should monitor regularly:

1. Commission Cost of Sales (CCoS)

CCoS is one of the most critical metrics in your compensation program. It indicates the percentage of revenue allocated directly to commissions. According to QuotaPath data, when CCoS exceeds 30% on a per-deal basis, you’re likely overspending.

Tracking CCoS across reps, deal types, and territories helps pinpoint inefficiencies. It also supports strategic decisions around margin protection, comp plan design, and headcount planning. For finance leaders, this is the north star KPI that ties comp directly to gross profit.

Pro tip: Use QuotaPath’s deal-level commission reporting to uncover where blended comp rates are quietly eating into margin.

2. Forecasted vs. Actual Payouts

Missed commission forecasts can throw off everything from cash flow to payroll operations. With tools like QuotaPath, finance leaders can compare real-time earnings forecasts (driven by CRM pipeline data) against actual payouts to spot gaps, anomalies, or sandbagging behaviors.

This visibility helps ensure accruals are accurate, budgets stay intact, and that comp plan expectations are being met in real financial terms.

3. Quota Attainment & Accuracy Rates

A healthy comp plan should drive consistent quota attainment, without making it too easy or impossibly out of reach. Tracking attainment distribution across the team highlights if your targets are realistic, and whether accelerators or tiered payouts are doing their job.

QuotaPath’s data shows that only 9% of companies currently have 80%+ of their team hitting quota, despite that being the ideal benchmark for sustainable growth. Monitoring this alongside plan “accuracy” (how closely payouts match expected earnings) ensures you’re balancing motivation with predictability.

Common Challenges

Common challenges when it comes to sales commission management include overly complex plans, manual processes, and a lack of compensation visibility across the team. Below, we delve into each one. 

First up is the complexity of commission plans. 

Out of a survey we conducted with 400+ RevOps, Finance, and Sales executives, 30% ranked “maintaining simplicity” as the biggest challenge during the sales compensation plan design process.

That’s because leadership tends to complicate commission plans as companies scale, which leads to errors and disputes. This often leads to misalignment of sales activities, distrust from reps on how they’re paid, and illogical comp plans that double dip on pay or motivate incorrect selling behaviors. An example of this might occur when a company pays a higher commission rate on a product they plan to sunset versus a new product.  

Manual processes also pose challenges. According to data from last year, 60% of businesses still rely on spreadsheets to manage commissions, which can be time-consuming and error-prone. When errors happen, reps are more likely to quit. In fact, we found that 66% of companies reported losing between 1-9%of their salesforce to commission errors every 1-2 years. 

Lack of visibility marks another challenge and one that Dennis’s team experienced first-hand. Sales reps often don’t have visibility into their commissions and how they’re calculated. When they don’t understand how they’re rewarded for performance, how can leaders expect them to perform? 

Another issue that’s popped up over the last decade is compliance. ASC 606 revenue recognition compliance introduced new accounting standards that called for businesses to account for commissions in new ways. This has led to confusion that the use of spreadsheets for manual tracking and amortization scheduling has contributed to. 

Fortunately, all of these challenges can be mitigated with the help of trusted sales and commission tracking software.

Sales Compensation Calculator

Calculate OTEs, sales quotas, and commission rates to design your sales compensation plans.

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Effective Commission Management Implementation

You’re probably thinking, “Okay, but can automated commission management really address all these challenges?” 

Yes, if implemented correctly.

An effective commission management implementation will typically include the following: 

• Compensation plans that are simple, logical and fair
• Reps have visibility into commission calculations and when to expect payouts
• Sales compensation stakeholders have access and custom views based on roles and responsibilities
• Individual tasks in the commission management system are surfaced with quick access to complete
• Full onboarding delivered in a timely manner
• Friendly user interfaces appropriate for various roles in commission processes
• Insights into sales compensation strategy effectiveness
• In-app collaboration to resolve disputes, address questions, and more
• Ability to save, duplicate, and edit compensation structures to quickly add or remove new teams, sellers, or comp plans
• Forecasting features that enable leadership and sellers to see real-time attainment and earnings progress and future forecasts based on pipeline

Most importantly is leadership’s compensation communication plan of your organization’s  strategy and any changes throughout the year. This will help to build trust and understanding between your team and your sellers.

To see if QuotaPath will work for your organization, chat with our team today. 

Fairness and Transparency in Commission Management

In addition to a successful implementation, your company should base your commission management philosophy off two key principles: fairness and transparency.

What is fairness in commission management? Fairness in commission management means that all sales reps are treated equally and that their commissions are based on their performance. This means that the commission plan should be clear, concise, and easy to understand. It should also be aligned with the company’s overall goals and objectives.

What about transparency?

Transparency in commission management means that sales reps know how their commissions are calculated. This means that they have visibility into the factors that affect their commissions, such as the sales goals, the commission rates, and the calculation methodology.

Both of these pillars are vital to your selling team. 

First, they help motivate and retain sales reps. When sales reps know that they are being treated fairly and that their commissions are transparent, they are more likely to be motivated to sell and stay with the company.

Second, fairness and transparency help to build trust between sales reps and the company. When sales reps trust that the company is treating them fairly, they are more likely to be open and honest with the company. This can lead to better communication and collaboration, which can ultimately benefit the company.

Third, fairness and transparency help to avoid disputes. When sales reps understand how their commissions are calculated, they are less likely to dispute their commissions. This can save the company time and money in the long run.

How to Ensure Your Fair and Transparent

To ensure fairness and transparency throughout your commission management process, create a clear and concise commission plan. Make sure your reps understand how their commissions are calculated and show the math behind your comp plan. 

You should also provide your sellers with visibility into commissions so that they can check to see what they’re getting paid on and peer into the calculations behind each deal to clear up questions on upcoming commissions checks.

Pro-tip: recruit the help of QuotaPath to do so. 

Lastly, include a session on your commission management system as part of your new hire onboarding for employees across RevOps, Finance, and Sales. This will help ensure that they know how commissions are being calculated and tracked, and, of course, how to use it.

See how this Business and Data Operations Manager added an onboarding session to cover their compensation policy and processes using QuotaPath. 

What is a Sales Commission Management System?

A sales commission management system is a software solution designed to automate and streamline the tracking, calculation, and payment of sales commissions. It integrates with CRM and payroll systems to ensure accurate and transparent commission payouts based on predefined compensation plans. By reducing manual errors and providing real-time visibility into earnings, it helps sales teams stay motivated while enabling finance and RevOps teams to manage compensation efficiently​​.

How Does a Sales Commission Management System Work?

A sales commission management system works by integrating with a company’s CRM, payroll, and accounting systems to automatically track sales performance and calculate commissions based on predefined compensation plans. It collects deal data, applies commission rules (such as flat rates, tiered structures, or accelerators), and provides real-time visibility into earnings for sales reps and finance teams. Once approved, the system processes payouts, ensuring accuracy, compliance, and alignment with business goals while reducing manual errors and administrative workload

Key features and benefits of commission management systems

So, what are the main benefits of commission management solutions? We’ve mentioned several throughout the article, but here are the key value adds:

Challenges of Manually Managing Commissions

Actually managing commissions presents several challenges, including:

1. Errors and Inaccuracies – Spreadsheets and manual calculations often lead to miscalculations, overpayments, or underpayments​.
2. Time-Consuming Process – Admins and finance teams spend hours reconciling data, verifying calculations, and approving payouts​.
3. Lack of Transparency – Sales reps often struggle to track their earnings, leading to confusion and potential disputes​.
4. Delayed Payouts – Approvals and manual data entry slow down the commission process, impacting rep morale​.
5. Difficulty in Scaling – As teams grow, managing commissions manually becomes increasingly complex and inefficient​.
6. Data Silos – Disconnected systems (CRM, payroll, finance) create inconsistencies and additional reconciliation work​.
7. Limited Auditability – Without automated records, tracking past payouts, approvals, and plan changes is cumbersome​.
8. Compliance Risks – Errors in commission calculations can lead to tax compliance issues or financial reporting inaccuracies​.
9. Inability to Model & Forecast – Manually managing commissions makes it difficult to analyze trends, forecast costs, or optimize comp plans​.
10. Low Sales Motivation – Unclear or incorrect commission payments can frustrate sales reps and reduce motivation​.

Switching to an automated sales commission management system helps overcome these challenges by improving accuracy, efficiency, and transparency.

Future Trends in Commission Management

Finally, what can you expect over the next few years from commission management tools? We’re already seeing an uptick in AI (think: ChatGPT) language processing to support comp plan design. 

In fact, we’ve introduced our own AI tool for building and translating compensation plans within QuotaPath.

Another trend we’re noticing is with mutli-year accelerators for account executives and account managers.

Multi-year deals tend to be better for the company. With current economic conditions, predictable revenue growth is more important toward profitability.

— Andrew de Geofroy, SVP, of Global Revenue Platform for Quantive

Executed in an AE comp plan, this might look like a standard commission rate of 10% on 1-year deals, with accelerated rates of 12% on 2-year contracts, and 15% on 3-year congrats. On the renewal side, you might see an AM earn 8% on a multi-year deal (or grab a flat bonus for converting an annual customer to a multi-year), versus 4-5% on a 1-year renewal. 

Our third trend relates to SPIFs. 

SPIFs have always been popular in sales to quickly motivate or change a specific selling behavior. More frequently, however, we’ve encouraged (and noticed) companies leveraging SPIFs to test potential changes to upcoming compensation plans.

So, want to see if a 2% increase in a commission rate will impact the number of multi-year contracts? Test it out for a quarter with a SPIF first before adding it into your plan. Maybe you’ll find you need to increase the rate in order for your reps to ask for longer terms. 

In conclusion, the biggest thing to remember regarding the future of commission management is that technology is on your side. 

Make your process more efficient for you and your team  with QuotaPath. 

To learn more, schedule time with our team or start a free trial. 

FAQs:

How does a commission management solution help streamline sales compensation processes?

A commission management solution can help streamline sales compensation processes in a number of ways, including:

• Sales performance management: Companies with sales incentive programs can use commission management solutions for sales performance management. Using attainment leaderboards and forecasted earnings from pipeline, leadership can get a quick pulse on real-time team performance and what’s to come.
  
• Automating commission calculations: A commission tracking solution can automate commission calculation, which can save time and prevent errors when it comes to commission payout.
  
  Try QuotaPath for free for 30 days
  
• Tracking sales activity: By integrating with a CRM, a commission management solution can track sales activity automatically to ensure that commissions are calculated correctly and that sales reps are compensated fairly.
  
• Providing visibility into commissions and incentive compensation: A commission management solution can provide visibility into commissions, commission reconciliation, as well as your sales compensation planning process. This can all help to bolster sales force motivation, rep accountability to track their progress, and fair commission allocation to ensure compensation plans are equitable and fair.
  
• Managing compliance: A commission management solution can help to manage compliance with tax laws and other regulations.
  
  Read: What does ASC 606 revenue recognition mean for commissions?
  
• Reporting and analytics: A commission management solution can provide reporting and analytics, which can help to track the effectiveness of the sales compensation plan and to make adjustments as needed.

How do commission management software handle complex commission calculations?

Compensation technology can handle complex commission calculations by using a variety of methods, including:

• Rules-based calculations: Rules-based calculations are based on a set of rules that are defined by the company. These rules can be used to calculate commissions based on a variety of factors, such as the type of product or service sold, the amount of revenue generated, and the number of deals closed.
• Formula-based calculations: Formula-based calculations use mathematical formulas to calculate commissions. These formulas can be used to calculate commissions based on a variety of factors, such as the sales price of a product or service, the cost of goods sold, and the profit margin.
• Algorithmic calculations: Algorithmic calculations use algorithms to calculate commissions. These algorithms can be used to calculate commissions based on a variety of factors, such as the customer’s lifetime value, the number of leads generated, and the number of sales opportunities created.

The specific method that is used to calculate commissions will depend on the complexity of the commission plan and the needs of the company. However, commission management software can typically handle even the most complex calculations with ease while providing transparent commission tracking.

How can businesses choose the right commission management solution?

When choosing the right commission management solution, you should consider:

• The complexity of your sales commission structure
• Guidance and expertise in compensation plan design
• Size of sales team/user limits
• Budget and pricing transparency
• Ease of use
• Flexibility
• Scalability
• Sales performance analytics and visualization
• Support
• ASC-606 Compliant
• Time to value
• Integration to tech stack

You can try QuotaPath’s commission automation for free by signing up for a free trial (no credit card required).

Customer referrals are your most valuable asset when it comes to conversions and renewals.

Did you know, for instance, that customers referred by other customers have a 37% higher retention rate?

They also spend 200% more than non-referrals and convert at a rate 3 to 5 times higher than any other marketing channel (Annex Cloud). 

But it’s not only the high conversions. 

For many buyers, purchasing processes kick off by asking for peer recommendations from a trusted B2B referral program.

“I start by getting recommendations from people I know who have used a few of the tools we’re looking at,” said QuotaPath RevOps Manager Brandon Smith. 

Then, once Brandon receives the green light from his network, he’ll reach out directly to learn more.

On the other side, you have SaaS businesses on the prowl — and in some cases, desperate — for customers they’re in good standings with who can share their positive experiences. What does this process look like at your company?

For early-stage businesses, it’s often a communication chain: Rep is on a call with a prospect who requests a referral. Rep then reaches out to CSM or AM and asks for names of contacts. AM or CSM, when they finally have time, then confirm a contact they can reach out to. 

Surely there’s a better, more efficient way, right? 

Below, we share a few best practices to grow your customer reference processes. 

Community referrals

Professional communities are a great place to grow and amplify your customer referral program. 

We, for example, are active in RevOps Co-Op, Pavilion, Women in Sales, and RevOps Alliance. These virtual spaces give us the opportunity to share helpful content and resources and answer questions that relate to our area of expertise: sales compensation.

They also provide the chance for our happy customers to suggest QuotaPath when someone asks for commission tracking recommendations. 

To ensure QuotaPath comes up, our community lead collaborates with our account management team to create a shareable document with every active customer across these professional communities who reported high NPS scores.

That way, when someone asks for referrals, the community lead can send a quick Slack message to those customers and direct them to comment if they feel comfortable. This also allows you to track who you’ve asked to respond so that you can get a healthy mix of referrals.

Additionally, your team can reference this document when you need referrals in other scenarios.  We recommend updating it quarterly to account for new referral contacts, point of contact exits, and churn or poor experiences. 

CRM checkbox

Another way to streamline your referral process is to use your CRM to notate accounts and contacts willing to be referrals. This is also a great way to build out contact lists when you need a wave of positive reviews across sites like G2, Capterra, and TrustRadius. 

You can do this by asking your RevOps or SalesOps teams to build a field that enables your team to put a checkbox on the account record for easy updating and reporting. 

Sales enablement should follow to:
1. Encourage your reps to ask customers if they’d be willing to be referrals
2. Build this step into the reps’ daily CRM hygiene processes

RevOps, this will likely fall to you to update every quarter or midway through the year to ensure references aren’t over-contacted and to keep the list timely. 

Ask for a reference on your customer satisfaction survey

If you want to put in place another avenue to add customers to your referral list, you can plant a question in your customer satisfaction survey.

Some sample copy to consider: 

“Would you be willing to provide your contact information so that we can follow up with you about becoming a referral?”

“How likely are you to recommend our company to a friend or colleague?”

And, if they say “no” to those, you could follow up with this: 

“What could we do to make you more likely to refer our company to a friend or colleague?” This question gives you specific feedback on how you can improve your customer experience and make customers more likely to refer your company to others.

Follow up with customers after they offer a reference

Lastly, remember to follow up with customers after they give a reference. 

This can fall to marketing, the reps, or a member of your leadership team. 

Following up will show that you appreciate their time and that you are serious about using their reference. Send a “thank you” note, swag, or even an update on how you used their referral. The better the experience, the more often your contact will be to act as a continued reference. 

About QuotaPath

QuotaPath partners with RevOps, Finance, and Sales teams to manage sales compensation more efficiently — and more effectively. With a library of free resources and an automated commission tracking system that aligns teams, saves time, and increases earnings accuracies, QuotaPath is the only sales compensation management software with a free trial. Sign up today. 

The following blog explores the sales jobs with the highest commissions.

One in eight jobs in the U.S. (nearly 13%) are full-time sales positions, but only 39% of salespeople plan to go into sales.

Despite what appears to be a reluctance to enter sales, a sales career has its benefits. For instance, salespeople develop many skills they can use in other facets of their life like communication, trust-building, analytical thinking, and problem solving.

These skills easily transfer to other career paths, so accepting a sales role, even temporarily, provides growth opportunities.

Plus, a career in sales is never boring thanks to the ever-changing marketplace. 

Sales offers plenty of flexibility and solid promotional paths. It’s a field that is both challenging and rewarding with high earnings potential.  

Most positions pay a base salary plus commission, often giving reps unlimited earning potential — one of the most enticing aspects of sales.

But not all sales roles are created equal in terms of income potential. High-commission sales jobs typically result in higher total earnings.

If that’s what you’re after, we’ve got you covered with this list of 10 sales jobs with the highest commissions. 

Read on to plan your next sales career move.

Highest commission sales jobs

1. Enterprise Sales/Account Executive

Our first of the sales jobs with the highest commission is the enterprise sales rep. Enterprise sales executives typically work in a business-to-business (B2B) environment and are responsible for managing and expanding their company’s largest customers. 

Since deals with enterprise clients tend to have a higher dollar value, the income potential is much greater for these sales roles. But this earning potential comes at a price: more responsibility and stress from dealing with the business’s biggest and most important clients.

Most candidates for enterprise sales executive roles must work their way up through the ranks to qualify, but someone with an MBA can occasionally get their foot in the door at this level.

— Source

2. Medical Device Sales Representative

A medical device sales rep sells medical equipment to medical professionals like surgeons and physicians. These sales professionals often demonstrate their medical products in doctors’ offices and hospitals. Some reps are even present in the operating room during medical procedures to confirm surgeons are using their devices correctly.

Although medical sales reps aren’t required to have a medical background, they usually need to have a bachelor’s degree, a thorough understanding of the potential impact of their medical device, and the ability to comfortably watch medical procedures.

— Source

3. Printing Sales Representative

A printing sales rep sells printing services and printed materials to businesses within a designated territory. This role involves creating relationships with current and potential customers, writing contracts, bidding on large commercial print jobs, and servicing existing clients. Additional responsibilities of printing reps include maintaining existing active accounts, following up with customers to confirm their level of satisfaction, or assisting with reorders. These reps also create presentations and proposals for business and keep abreast of their company’s new product and service offerings.

Printing sales reps don’t necessarily need any special educational requirements, but those with prior printing industry knowledge or experience are most likely to land the highest commission sales jobs.

— Source

4. Pharmaceutical Sales Representative

Pharmaceutical sales reps visit doctors’ offices, hospitals, and medical facilities in their designated territory. Their goal is to develop relationships with doctors and educate them about the proper use and benefits of the drug and manufacturer they represent with the intent of driving more prescriptions.

Pharmaceutical sales roles are highly sought after. A bachelor’s degree from a leading university plus a high GPA is typically required to break into the industry.

— Source

5. Solar Sales Representative

A solar sales rep sells solar energy systems to residential and commercial customers. Responsibilities include determining if each location is a good fit for solar, creating cost and saving estimates, and responding to customer questions. In this role, reps may also need to develop strategic plans for sales territories, demo equipment, and keep up to date with product changes. Plus, some solar salespeople are required to prospect for leads while others are tasked with calling on warm inbound leads. It’s worth noting that this position typically pays solar sales commission with no base salary.

— Source

6. Territory Account Manager

A territory account manager estimates the potential of increasing sales goals or closing deals in a geographic territory. This role also manages a sales team. Other duties include developing sales plans, monitoring costs, improving customer service, gathering data, and reporting results.

This role requires strong management and communication skills. A bachelor’s degree in business or marketing and proven field sales experience are common requirements of a territory account management position.

— Source

7. Realtor

Realtors are consistently on the sales jobs with highest commissions lists. A realtor sells commercial or residential real estate. They represent buyers, sellers, or both. They help people buy or sell a property and earn a percentage of the sales price as a commission. A selling agent is responsible for things like listing and marketing the property, hosting open houses, and completing closing paperwork. Buyer’s agents help clients find properties, craft offers, and assist people throughout the property buying process until the sale is complete.

The main requirement to be a realtor is completing training and passing a licensing exam in the state where they sell properties.

— Source

8. Sales Engineer

The sales engineer role combines sales, engineering, science, and technology. Companies that sell equipment, mechanical systems, or software products involving complex technologies often employ sales engineers. Sales engineers are typically responsible for assessing the client’s current equipment, mechanical systems, or software stack, understanding the customer’s needs, challenges, and goals, and creating a customized solution.

To qualify for a sales engineer’s role, an engineering bachelor’s degree or higher, or comparable experience, is typically required, due to the technical nature of this position.

— Source

9. Advertising Agent

An advertising sales agent works with potential clients to earn their firm’s advertising business. They typically initiate contact with the prospect to explain the various advertising services offered by their company. After conducting a thorough discovery call, they provide potential customers with quotes, handle paperwork, and make sales presentations to potential and existing clients. This role requires you to establish a good professional working relationship with clients. This facilitates identifying pain points and recommending advertising services that best meet their needs.

— Source

10. SaaS Enterprise Account Executive

A software-as-a-service (SaaS) enterprise account executive is responsible for generating new business within a portfolio of large enterprise accounts. They engage with C-Suite executives within prospect companies that meet their ideal customer profile and are most likely to need their solution. The sales cycle for these deals tends to be 6-12 months long and requires advanced strategic selling skills across a large buying committee. This role is quite demanding and extremely rewarding. That’s why these are some of the highest commission sales jobs available.

Our research revealed that the highest commission sales jobs in this category were Workday and PayCom. And those with the highest total compensation were Snowflake, Workday, and SumoLogic.

Although these aren’t entry-level sales jobs, they are ones to strive for as you advance your career.

— Source

Highest commission sales jobs, roles, and industries

As you can see, there are many different sales jobs with high commissions. The highest paying roles are enterprise account executives in both SaaS and non-software industries, followed by print sales reps. And the highest commission sales jobs from our list are SaaS enterprise account executives followed by solar sales reps. 

Automate sales compensation management and commission tracking with a 14-day free trial of QuotaPath or see it live in a guided demo with our team. 

Out of the 10 common commission structures we see, the commission-only sales job is one of the most polarizing. (Although, don’t get us started on compensation plans featuring cliffs or floors.)

Those who have excelled in a compensation model that only pays sales reps commissions based on the deals they win will tell you how lucrative it can be.

But with no base salary, the success of commission-only sales jobs depends entirely on pipeline strength. A spotty pipeline will equate to spotty success. And with no base to lean upon, reps can find themselves in precarious financial situations. 

I experienced this first-hand in a retail environment selling cell phones as a commission-only sales rep in my early 20s.

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At the time (the business has now switched to include hourly pay), reps earned between $40-$250 per device based on make and model and contract terms, shared across the floor with other reps. Some days, I’d make close to $1,000 a shift. But on other shifts, I might walk out with $20. 

Eventually, I gamed the system a bit to build a schedule at the busiest of stores with the best shifts that I’d try to fill with appointments of my own client base. However, if other reps passed me in the rankings, they had dibs on the shifts and stores. 

I found the eps and flows of predictable income challenging after a year and a half and pursued and moved into a salaried-plus commission leadership role.

Now, in my late 30s and with two kids, I can say with certainty that I would not take on a commission-only sales job again.

After running a LinkedIn poll, it seems most people agree. 

I wouldn’t do it again because I need to plan for a predictable income with my children. That, and I’m also admittedly not great at sales.

But for those who excel in this field or those who want to learn sales fast, some would say there’s no better way to get good at sales than to make your income entirely dependent on it. 

Below, we examine the pros and cons of commission-only sales jobs, what to look for when hiring sales reps on commission-only, plus commission-only comp plans.

Benefits of sales jobs commission only

First and foremost: no commission caps. 

Since the company eliminates the financial risk of paying for underperforming reps, very rarely do 100% commission roles come with caps. So, the sky is the limit for the rep. Pair that with high commission rates, and the earnings potential is very high. 

Secondly, as mentioned above, 100% commission roles require reps to learn the job fast.

“This type of comp plan works really well if you can stomach some of the risks because you might suck at it for a quarter or two,” said Asher Mathew, Demandbase VP of Go-to-Market Data & Sales Intelligence Cloud. “But it’s the fastest way to learn sales, customer success, and marketing while building your understanding of how to cultivate champions and get a budget allocated to the business initiatives your product supports.”

These roles also typically yield more independence and flexibility to build your own schedule.  

Challenges of commission-only sales jobs

Now for the challenges.

My biggest issue in a commission-only job was the volatility of paychecks. I’d have two consecutive quarters absolutely crushing it followed by a month of poor performance. This can cause stress.

Another challenge is high turnover. Since you’re either making money, or you’re not, the revolving door of reps leaving seems to never end. 

Plus, banks often flag 100% commission jobs as “high-risk” on house loans or refinancing applications.

Lastly, you are completely in the driver’s seat of your income. If you are not willing to put in the effort to build your pipeline, establish relationships, and close deals, then you will not be successful. This type of role works best for self-motivators who don’t cut corners. 

Hiring sales reps on commission only

In general, we see commission-only sales jobs more commonly in industries where the sale of a product or service is highly variable, like real estate or pharmaceutical sales. For example, the sale of a house or a piece of property can vary greatly depending on the location, the condition of the property, and the market conditions. 

In these industries, it is often difficult to predict how much a salesperson will earn in commissions. That’s why so many companies pay a commission-only model.

Plus, “Managing 100% commission-only reps is a beast because the people who will be successful in that sales role are lunatics. You may find a great salesperson, but most salespeople will be a drain on your resources,” said Ali Mirza, CEO & Founder of Rose Garden

However, if you’re looking to hire a salesperson for a commission-only role, here are some of the skills and qualities that successful commission-only reps share in common

• Proactiveness: You’ll need someone always looking for new opportunities to generate leads and close deals. They are not afraid to pick up the phone and cold-call potential customers.
• Persistence: They don’t give up easily. They keep calling on potential customers until they get a yes.
• Communication skills: Reps need to be able to clearly and concisely explain the benefits of their product or service to potential customers. They also need to be able to build rapport with potential customers and answer their questions.
• Negotiation skills: Salespeople who are successful in commission-only roles need to have good negotiation skills. They need to be able to negotiate the terms of a sale and close the deal.
• Self-motivation: Probably the most important quality is self-motivation. They need to be able to set their own goals and work independently to achieve them. They also need to be able to handle rejection and stay motivated even when they don’t make a sale.
• Problem-solving skills: Elite problem-solving skills are imperative. Reps need to be able to identify and solve problems that potential customers may have.
• Knowledge of the product or service: They should have a deep understanding of the product or service they sell.

In addition to these skills and qualities, successful commission-only salespeople are also typically driven, competitive, and have a strong work ethic. 

Plus, they manage their time effectively, set realistic goals, and accept the financial risk of commission-only sales jobs. 

Commission-only compensation plans

Next, we’ll get into commission-only comp plans, which are generally the easiest to build.

“Due to the simplicity of a commission-only compensation plan, you forgo a lot of risks — when your salespeople succeed, revenue increases; when they fail, you lose nothing,” wrote HubSpot.

When you create 100% commission comp plans, you’ll follow similar steps to your standard comp plan building process with a couple of key differences.

First, if your organization chooses to not offer a base salary, you will want to increase your commission rate substantially.

For instance, the standard commission rate in SaaS is 10%. But SaaS companies most frequently create on-target earnings that consist of a base salary and variable pay, with a 50/50 pay mix. 

More SaaS Compensation Trends Data

“The commission rate should be up to 2x that of normal rates,” said QuotaPath Chief of Staff Graham Collins, who has conducted over 500 comp plan consultations.  

With that in mind, think 18%-20% on sales. 

Secondly, you should avoid decelerators and commission floors. These measures require the rep to achieve a certain amount of sales or revenue before becoming eligible for commissions. 

How to build a commission-only comp plan

Step 1: Determine on-target earnings and quota. For most sales roles this will consist of variable pay and a salary. In this case, you will set a target total commissions number and pair that with a quota that is 5x-8x that number. 

You could also work top-down by starting with the company-wide annual recurring revenue goal.  Then, divide that by the number of salespeople, then again by the average contract value. Divive it a third time by the quarter or months depending on your quota frequency.

Step 2: Set your commission rate. This might fall anywhere between 5% to 45%, according to HubSpot. Keep in mind, the more responsibilities your reps have throughout the customer journey, then the higher the commission rate. 

Step 3: Decide when you’ll pay commissions. At the start of service? At the time of contract? For commission-only roles, 

Step 4: Define your clawback clauses. If commission-only reps hustle deals in only for them to dissolve shortly after, one way to deter this from happening is to build clawbacks into your commission policy. 

Step 5: Factor in onboarding and ramp times of new hires and set up a draw program. This will help offset the delay in commissions as they grow more confident in your sales process. 

Step 6: Create a compensation policy that outlines the process and get rep signature to show understanding. 

Commission-only compensation plan example

To help you build a commission-only comp plan, we’ve sourced two examples.

The first comes from Asher, who used our free Compensation Hub resource to build out a template according to his business metrics. 

His example includes a base rate of 25% and an accelerated rate of 37.%5 that kicks in once the rep archives 100% to quota. 

Other variables include:

• OTE: $150,000
• Annual quota: $600,000
• Average contract value: $20,000
• Deals per pay periods: 7.5

You can use a template of his plan to plug in your own business variables. 

HubSpot also put together the following plan: 

Broken down, that’s a quota of $500,000 for the year with a 20% commission rate applied to every deal, for an OTE of $100,000 take-home for the rep.

That means the rep would aim for $125,000 in revenue per quarter or $41,666 per month. 

Conclusion: Sales job commission only, you in?

So, what do you think now? Will you join the 6% of sales reps per our survey willing to accept a sales role? Employers, will you exchange less financial risk for less profit per deal? 

If “no” to the latter, you can explore other commission structures that make the most sense for your business.

For additional support in building sales compensation plans, check out our free library of adjustable sales comp plan templates. Once you develop a plan that’s simple, logical, and fair, sign-up for a free 30-day trial in QuotaPath to automate sales compensation management and prepare commission payments. 

You can also skip the trial and connect with our sales team. Learn how QuotaPath can run your commission processes more efficiently while motivating and building accountability across your team by scheduling a demo. 

QuotaPath is pleased to introduce our new brand, website, and refreshed product experience. 

This new brand is the culmination of many interviews with customers, prospects, partners, and team members, and represents our company’s growth and vision for the future. 

When QuotaPath first launched in 2018, individual sales reps leaned on our platform to track commissions accurately and forecast their potential earnings.

“Our initial goal was simple: Make sales compensation easy to understand for reps,” said QuotaPath Co-Founder and CEO AJ Bruno. “However, in partnering with our customers over time, it became clear that our focus on reps needed to expand to everyone impacted by sales compensation, including those responsible for plan design, commission calculations, and payouts.” 

As such, we introduced new tools, dashboards, and features to better support leaders from Revenue Operations, Finance, and Sales throughout the entire sales compensation process. These included custom compensation plan templates, self-serve integrations to CRMs and invoice systems, holistic views of the most valuable compensation data for reps and comp managers, and in-app collaborative tools to streamline the management process and save time. 

Our new brand reflects our product’s maturity, and our vision for the future: to rally revenue teams around shared goals through an effective variable compensation process.

“QuotaPath’s brand refresh, under the leadership of our CMO Sara Strope and Director of Brand Melanie Taube, reflects a much clearer point-of-view in empowering RevOps, Finance, Sales leaders and reps to be intentional and accountable for their team’s compensation needs,” said AJ. 

QuotaPath: Smart commission management

In previous years, QuotaPath was known as the sales commission tool “built by sales teams for sales teams.” We highlighted the fun, celebratory feelings reps hope to feel on payday. 

But paydays can also lead to frustration when expectations aren’t met.  

From the rep who celebrates a bump in commissions after surpassing quota, to the RevOps director quadruple-checking commission calculations just hours before payroll is due, and the accountant tasked with issuing a clawback, money is emotional. 

Our new brand reinforces our dedication to all the stakeholders impacted by commision management and acknowledges the importance and complexity of emotions felt about compensation. This new brand also spotlights our sales compensation expertise. 

Our core attributes

Four core attributes will guide every expression of our new brand.

Smart
QuotaPath is a smart solution to a complex problem.

Confident
We’re confident in that because we craft thoughtful experiences and content driven by data.

Mindful
We’ll listen, understand, and empathize.

Approachable
We’re your collaborative partner by offering candid and genuine help while doing our best to avoid jargon. 

New brand elements

Color palette

Our color palette balances familiarity with freshness. The deep green is an homage to money and spreadsheets. We recognize spreadsheets are a powerful, comfortable tool for revenue operations and finance teams, and you can upload and export spreadsheets from QuotaPath. Our bright lime green and lemon yellow show confidence, and modernity. The orange and blue used as secondary colors reflect our close connection to HubSpot.

Type

Simula (by Justin Sloane at Sharp Type) is a serious yet personable serif. Our new design system relies heavily on type as we frequently share insights, data, and guidance.

Illustration

Our new illustration style was inspired by scientific drawings, reflecting the principles of instruction and innovation.

Photography

Our photography captures authentic human emotion and reflects the collaboration between individuals. 

Product

We applied our new brand elements to our product, and the result is astounding. The new color palette and iconography bring clarity to essential compensation views. Key tasks and charts shine thanks to the lighter backgrounds and updated iconography. Go ahead, start a trial and take a look.

Have a look

Check out our new website. Sign up for a trial and experience our product.  Follow us on LinkedIn.

Or meet us in person!  We’ll be at HubSpot’s INBOUND and at SaaStr the first week of September. 

About QuotaPath

Sales compensation should rally your revenue team.

We see teams overcomplicate sales compensation pretty regularly. Balancing your core financial targets with the interest of your sales team is tricky. 

Our founders created QuotaPath in 2018 to partner with you on your compensation strategy and remove complexities that slow your revenue team down.

Through our sales compensation management solution and comp plan design expertise, we rally GTM teams through purpose-driven comp plans, commission visibility, and streamlined workflows.