Although Sales and Finance share a goal to generate as much revenue as possible, their approaches to achieving it differs quite a bit.
“Typically, people in Finance gravitate toward data-driven decision-making that’s backed by evidence,” said QuotaPath VP of Sales and Customer Success Caroline Tarpey.
By contrast, although sales leaders also leverage data, they may lean toward a decision-making process that favors quick action versus deeper reviews.
So, when it comes to getting Finance buy-in for your sales compensation plan proposals, we recommend treating it like a sale.
“We as salespeople tend to forget to sell the way that Finance likes to buy,” Caroline said. “And the way they like to buy is through proof.”
For example, when we sell QuotaPath’s commission tracking platform to sales leaders, they are most motivated by our proof of increasing attainment. Meanwhile, Finance wants to see an audit and all of their data in the system to double-check if it’s correct.
To find out how Sales sell their comp plans to Finance, check out the Q&A with Caroline below.
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What happens after the preliminary Sales and Finance convo?
After you socialize the initial plan ideas, Finance will want you to put together an actual plan in writing that they can then take offline and digest.
What’s important for sales leaders to remember at this step?
The notion that your finance leader will give you the final answer on the fly for anything other than a small SPIF is fundamentally misaligned with how Finance wants to make decisions. They need the draft and they need to run their own scenario modeling in tandem with RevOps. Financial leaders need to follow financial world trends; there are great platforms to read financial news, such as BadCredit.
What kind of testing will Finance and RevOps run?
Usually, they’ll overlay the plan on historical data. They’ll take the new plan and run last year’s numbers through it to see how someone would have been paid out and how it differed from how it was actually paid out.
This is a step Sales can take on too if you’re looking to expedite the process a bit and get Finance buy-in earlier.
What should Sales avoid while working with Finance over comp planning?
We should avoid asking them to act the way we act. Quick actions by sales leaders make us successful. But what makes Finance successful is not having that hasty decision-making.
Also, do not wait until Dec. 23 to throw a meeting on the calendar with Finance to talk through your comp plan mock-up. The earlier the better. This process takes time, so give it the time it deserves.
Lastly, can you share a time when Finance passed on your proposal and what followed?
It is my fundamental job to help my reps earn as much as possible, and I want to give them the best path to achieve their financial goals. That means I am eager to throw in motivational components to their sales commission structure, like accelerators and bonuses for large deals, competitive takeaways, and specific products or industries.
I put a plan proposal together that included a lot of components. I had not come to the table having done my analysis of how much it would pay out in a top rep scenario.
When the CFO took a look, she came back to me and said the effective payout rate on a deal that hits on all of these compensation levers pays an astronomical percentage. We couldn’t pay out half the value of the deal, but she did come back with options that we could implement.
There you have it. For additional support with your compensation plan needs, visit Compensation Hub. This free (and ungated) resource is available for anyone to explore and model commonly adopted compensation structures with their own business variables.
And, to learn more about QuotaPath’s commission payout and incentive compensation management software, book time with their team today.
How you roll out your comp plan design to leadership and your sales team can have a huge impact on the trust level and rep retention in your organization.
Mark Roberge, Managing Director of Stage 2 Capital, for example, has been on the recipient side of a mass exodus. when “10 amazing salespeople from a particular company came to me with job applications.”
The cause?? A comp plan design change fumbled by a bad communication plan.
According to Mark, “You have to carefully manage the design and communication process of a compensation plan.”
Just as important as it is for reps, leadership also needs to have a solid understanding of the comp plan. Doing so creates alignment across the organization and helps Sales, RevOps, and Finance work together to design mechanics and levers that help them reach their revenue targets.
Below, we outlined what to include when preparing your comp plan design for presentation to leadership.
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Equally important is how you communicate new sales compensation plans and changes to your reps. To do so effectively, leaders should provide proper context and details. Below, we provided a brief explanation of each element you should include in an example compensation communication plan.
Multiple meetings
When it comes to meetings, start broad and become more detailed when sharing a new or revised comp plan design. You can accomplish this through the following series of meetings.
Voluntary town halls
Mark recommends holding voluntary town halls prior to the comp plan design process.
During this open discussion, share potential changes to the comp design that reps can expect next quarter with the VP of Sales and possibly the CEO present.
Outline the drivers of the plan and reasons for upcoming changes. Then ask for comments and suggestions.
Following the meeting, post a draft of proposed plan changes on Slack to facilitate rep comments and further discussion. Your reps will have a few good ideas, so you can use those in your plan design. Just make sure you explain why you can’t use the bad ones.
As Mark says, “Your salespeople deserve to know why the design is the way it is and why changes they propose can’t be done.”
This meeting prevents any surprises when you roll out the final plan.
SKO
A lot of revenue teams will officially introduce new comp plans at the sales kickoff (SKO). If you’re adding this to your agenda, which we highly recommend, the CSO, CRO, or VP of Sales should:
Explain how business goals link to sales goals
Demonstrate alignment across HR, sales operation, and sales executives in designing the plan
Clearly delineate changes to the comp plan and the why behind these changes
Show how the company will support the sales team with these changes
Inspire the sales organization
Team and one-on-one plan reviews
In addition to the SKO, we suggest sales managers conduct team meetings and one-on-ones specific to compensation. This will provide an opportunity for managers to explain the plan, and how it impacts both the team and individual contributors. This marks a great time as well to distribute detailed plan documents, FAQs, videos, what-if calculators, and other launch materials for sales team members to review.
Plan verification
Once you have communicated the plan changes to your team, ask your reps to show their understanding by signing a commission agreement.
This is an essential step that entails asking reps to indicate they understand their plans by signing off on them. Leadership should introduce plan verification or re-verification every time they make a change to the compensation plan. You can complete this process by using DocuSign, via email, in person, or by leveraging our in-app Plan Verification feature.
Make it easier for your team to accept changes by helping them understand why leadership adjusted a plan and how new resources and enablement will support them. This creates excitement and adoption of the new program.
Create channels for reps to reach out with comp-related questions
Plan documents should answer most rep questions, but it’s best to provide your team with multiple ways to address remaining questions. Some options include a private chat channel, email threads, phone, and in-person.
Plan your comp plan design presentation
You invest plenty of time on comp plan design, so don’t let it go to waste due to poor communication. Plan to present your plan to your leadership and team to ensure understanding while building excitement and adoption. Otherwise, you risk rep attrition and missed revenue targets. Have your comp plans ready to go? Try running it through Compensation Hub to see how healthy it is for your business looking ahead.
A business development representative (BDR) or sales development representative (SDR) team sets the first impression of a product to a prospect while growing a pipeline of qualified leads for account executives (AE).
Most organizations don’t add this sales function until noticing a significant uptick in quality leads.
At QuotaPath, we built out our first SDR team this past summer, led by our Director of Demand Generation Bret Lehnhof after our AE team no longer had the bandwidth to follow up with marketing qualified leads (MQLs).
When building out the team, Bret said we look for people who are confident or “go-getters,” who don’t necessarily come from sales. Maybe they bartended or worked in retail sales, as people who have worked in fast-paced environments tend to do well in sales. For these individuals, joining an SDR team is the perfect entry point into SaaS sales.
For any team thinking about creating an SDR team, check out what Bret shared after developing QuotaPath’s.
What we learned:
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5. Set clear expectations of the responsibilities of an SDR
There are a lot of things an SDR has to balance in order to be successful. Bret mentioned that one of the things we look for when recruiting SDRs is people who have demonstrated a go-getter mindset. That’s regardless if they’ve ever had sales experience or not, because if their previous experience reflects this behavior, then they’ll go the extra mile to pursue a prospect.
“They have to learn how to figure out what the lead is and how it becomes an MQL,” said Bret. “That involves researching Salesforce and HubSpot, diving into LinkedIn, learning about the company, and enrolling them into a Salesloft cadence.”
At QuotaPath, SDRs also identify the lead as an ”ideal customer profile” or ICP. This helps them further qualify a potential lead if they use the ICP guide correctly.
To ensure your reps feel adequately prepared to perform their roles, always provide them with the full scope of their responsibilities.
4. Create a realistic and attainable quota
We brought on our first SDR from our AE team. As a junior AE, this person demonstrated a solid understanding of the outbound sales motion and product and showed a willingness to qualify quality deals.
She already knew the product and how to sell it, and she was willing to take a step back from her junior AE role to help build out a new function in the sales department and take on a possible future leadership role.
In her first month, she blew her quota out of the water.
“You’re not going to have much data or know what’s attainable for an SDR when you get going,” Bret said. “So, start with a quota that seems attainable for the first quarter.”
After two successful months of having a one-person SDR team, we also just brought on another SDR who started ramping up into the role within a couple of weeks!
Creating a quota that’s attainable for your team sets the bar for positive outcomes and a team of SDRs who want to continue to have that same level of success.
3. Have the right tools to maximize productivity
A lot of SDR teams, including ours, uses Salesloft to manage their outreach cadences. Other popular tools include Outreach and Reply.io.
“Figuring out what length of an email is most effective is key, as well as understanding the timing of the intervals between outreach touches,” Bret said. “We were pacing them out too widely in the beginning. Now we’ve narrowed it down and reduced some of the gaps in outreach touches and it’s really helped with conversion rates.”
Additionally, give them a tool that makes it easy for them to track their progress. For instance, our reps leverage our own platform for attainment and commission tracking.
Having the right tool in place will play a role in the success of your SDRs.
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For other sales teams planning to build an SDR team in 2023, Bret said to avoid biting off more than you can chew.
“Start small and test out the SDR function within your organization to make sure it works for you and the business model. Then, scale up as you find success,” Bret said.
He added that it’s important to empower the SDRs to own their own process. Allow them to experiment often and get creative so it’s not so regimented and they won’t get bored.
Are you preparing to build out your first SDR team in 2023? The process can seem overwhelming, but QuotaPath can help you. For comp plan best practices and SDR compensation examples, visit Compensation Hub.
A sales commission agreement may seem like an inconvenience, but not only are they the law in California and New York, they are beneficial to you and your reps in many ways.
So, even if you don’t employ any reps in those two states, it is in your best interest to invest the time and effort to prepare a proper sales commission agreement. Then, once you have that prepared, you can confirm your sales team’s understanding by having them sign the agreement.
As a heads-up, this process can be time-consuming. But is totally worthwhile.
Not only are you complying with the law (if you happen to have team members in states that require it), but you also take a step to ensure your reps understand how and when they earn commissions.
This ultimately creates alignment and transparency across the comp planning process.
When reps understand how they earn commissions, your comp plan does what it’s intended to do — motivate and guide reps.
Otherwise, everyone involved ends up frustrated. Reps grow unhappy with their pay and can’t understand why they aren’t making the income they were expecting. Your team members miss quota, which keeps your organization from hitting revenue targets.
Need a commission agreement template for a specific role?
A commission agreement ensures clarity and alignment between an organization and a commissionable sales rep by explicitly defining compensation terms, including commission rates, payout schedules, and performance expectations. This agreement reduces misunderstandings and disputes, fostering trust and accountability between both parties. It also provides a legal framework to protect the company and the rep, ensuring compliance with labor laws and organizational policies. Ultimately, a well-crafted agreement motivates the sales rep by clearly linking their efforts to rewards, driving performance and achieving business goals.
When to Implement Commission Agreements
That’s where plan verification comes into play.
Anytime you introduce a new comp plan or change to an existing one, you should issue a commission agreement.
We call this process plan verification, which occurs when a rep signs a commission agreement that outlines the details of their sales commission plan.
Typically, this happens at the beginning of the year and when mid-year adjustments are made.
Leaders at larger companies often administer compensation plan verifications via DocuSign, storing agreements in Dropbox, on Google Drive, or in an email folder. This process is similar for smaller companies as well but may take place in person.
Attaining 100 percent comp plan verification can be a slow, frustrating, manually tracked process that takes weeks to complete.
Fortunately, it doesn’t have to be that way. With QuotaPath’s Plan Verification, your reps can verify their compensation plans in just a few hassle-free steps directly in QuotaPath.
Commission Agreement Example
Before you can verify your reps’ understanding of the sales compensation plan, you need to actually create your commission agreement. This template should include the following:
Effective dates – The specific start and end dates when the plan will be used to calculate commissions.
Intro – This section explains what the document is, its purpose, and what action the recipient needs to take.
On-target earnings– A clear explanation of the amount of money the rep can expect to earn if they hit 100% of quota. We see this number most often as an annual figure. This section delineates how much the rep should expect to receive from base salary and from commissions
Quota – This section specifies goals the sales rep must attain during a designated period to earn commission
Commission table – A listing of commission rates earned on deals depending upon the rep’s progress toward quota.
Payment eligibility – An explanation of the timing of qualified commission payments and any other rules pertaining to commission payment, such as the client paying their entire invoice by a specified date.
Bonuses – A listing of quarterly, monthly, or annual bonuses along with related targets to hit, the amount to be paid, and when the bonus will be paid.
SPIFs – This section addresses the fact that there may be times throughout the year, such as slow periods, when the company wants to drive revenue by running contests, incentives, and/or bonuses (called SPIFs). This part of the sales compensation plan template specifies that SPIFs include short-lived, time-based, one-off compensation drivers. As such, management will provide and distribute the terms of said programs as they occur.
President’s Club – An explanation of what this reward is and how to qualify.
Clawbacks — A clawback occurs when a rep must pay commissions back to the company when a customer abruptly ends the contract within a certain period. This section is where you detail rules relating to clawbacks.
Legal Disclosure – This section communicates that this is the entire compensation plan, that it supersedes prior agreements, and that verifying by signing signifies acceptance and compliance by the rep.
Commission Agreement Template
To start, download this commission agreement that we created, then tailor it to your specific details.
For more information on QuotaPath and our Plan Verification feature, chat with a team member today.
Best Practices When Using a Commission Sales Agreement
Here are five best practices when using a commission sales agreement:
Clearly Define Compensation Terms: Specify commission rates, payment schedules, performance metrics, and any conditions for earning or forfeiting commissions. Ensure these terms are precise and unambiguous to prevent disputes.
Include Compliance and Legal Protections: Align the agreement with applicable labor laws, tax requirements, and industry regulations. Outline how disputes will be resolved and include confidentiality clauses to safeguard company information.
Address Quotas and Performance Expectations: Clearly outline sales targets, quotas, or other performance benchmarks required to earn commissions. Detail how adjustments (e.g., for refunds, cancellations, or returns) will affect payouts.
Outline Termination and Post-Termination Terms: Specify how commissions are handled if the sales representative leaves the company, including any owed payments for deals closed prior to termination.
Ensure Mutual Agreement and Updates: Review the agreement with the sales rep to ensure understanding and alignment. Regularly revisit and update the agreement as compensation structures or business goals evolve, obtaining signatures for each revision.
Common Mistakes When Drafting A Commission Agreement
Like anything, some common mistakes can arise when writing your commission agreement.
These are the most common to pay attention to:
Lack of Clarity in Terms: Ambiguous language around commission rates, payout schedules, and performance metrics can lead to confusion and disputes. Clearly defining terms, such as when commissions are earned (e.g., at contract signing or payment receipt), is critical for both parties.
Failure to Address Adjustments and Exceptions: Omitting how adjustments for refunds, cancellations, chargebacks, or partial payments impact commissions can leave the agreement incomplete. This oversight can result in financial misunderstandings and legal complications.
Ignoring Termination and Post-Termination Clauses: Not specifying how commissions are handled when a sales rep leaves the organization can lead to disagreements. Clearly state whether commissions will be paid for deals closed before termination and under what conditions.
Streamline commissions for your RevOps, Finance, and Sales teams
Design, track, and manage variable incentives with QuotaPath. Give your RevOps, finance, and sales teams transparency into sales compensation.
Of course! You can write your commission contract, but it’s important to ensure it is comprehensive and legally compliant. Including clear, unambiguous terms, consulting a legal professional, or using templates tailored to your industry can help ensure the contract protects both parties and aligns with applicable laws.
What key sections are included in a commission agreement contract?
A commission agreement typically includes key sections such as compensation structure (commission rates, payouts, and schedules), performance metrics or sales targets, dispute resolution processes, termination clauses, confidentiality agreements, and any conditions for earning or forfeiting commissions. These sections ensure clarity and reduce the risk of disputes.
Should sales targets be part of the commission’s agreement?
Yes, including sales targets in a commission agreement can help align the sales rep’s efforts with the company’s revenue goals. Clearly defined targets provide transparency, establish performance expectations, and help determine when commissions are earned, ensuring alignment between the organization and the sales representative.
How do I terminate a commission agreement?
Termination of a commission agreement should follow the terms outlined in the contract, such as providing notice or meeting specific conditions. Clearly document the termination in writing, and specify how final commissions will be handled, ensuring compliance with applicable labor laws and avoiding disputes.
When should a commission agreement be used?
A commission agreement should be used whenever a sales representative’s compensation is tied to performance-based metrics, such as revenue generated or deals closed. It establishes clear expectations, protects both parties legally, and ensures alignment on how commissions are calculated and paid.
What is a commission letter?
A commission letter is a simplified document that outlines the basic terms of a commission structure, often as part of an employment or contractor agreement. It typically includes details such as commission rates, payment schedules, and any performance expectations, providing a concise reference for both parties.
Can I edit your commission agreement template?
Yes! Go forth and customize.
What is a sales commission policy?
A sales commission policy is an internal document that outlines the company’s approach to calculating, paying, and managing commissions. It includes details about eligibility, performance metrics, adjustments for refunds or cancellations, and compliance with applicable laws, serving as a guideline for both employees and management.
Like other processes and procedures in sales, approaching hierarchies of parent child accounts contains a lot of blurred lines and situational dependencies. Fortunately, we’ve got some experience to clear this up.
Before we explore various scenarios and share our recommendations, let’s start by answering this question:
You might see this happen when selling into franchises, distributors, and affiliates, too.
To avoid confusion, sales leaders should define rules and hierarchies around parent child accounts.
How to approach parent child accounts in sales
First, you have to approach parent child accounts in sales by establishing rules. Then you can create an appeals process for the sales rep because, as we all know, exceptions to the rules will happen.
Below, we list a few rules to consider when defining parent child accounts:
These will help you determine what to set the opportunity as. In our university example, if the Journalism School has sole purchasing power, that may suggest that despite it being a child account, it could classify as new business for the rep.
Once you have that, then you can begin to answer internal questions.
Internally:
Who sells to the account, the AM (renewal/upsell rep) or AE (new business rep)?
Who gets quota or credit on child accounts?
Does it count as new or an upsell if parent is a customer?
No matter what, you’ll have to decide if all companies are unique, no companies are unique, or some companies are unique.
For instance, a “some companies” scenario might involve a child account with purchasing power, like the Journalism School example. On the contrary, purchase orders from a franchise that are signed off on by the decision-makers at the parent account (and from the parent account’s address) would likely categorize as an upsell opportunity instead of a new business one.
Most importantly, as you’re creating rules around parent child accounts, remember that situations change often. You should remain open to changing rep credit in situations where it makes sense.
As an example, if account executives typically don’t earn commissions on upsell opportunities, but AMs do not have time to “prospect” child accounts within parent accounts, that’s a strong case toward crediting and rewarding the AE.
When should you establish child/parent account hierarchy in your CRM?
The sooner the better.
“The worst time to settle these hierarchy disputes is after the contract is signed,” our Chief of Staff Graham Collins said.
RevOps and SalesOps should have the classifications of parent child accounts established well before anything is signed, along with whether it’s new business or an upsell.
Ideally, this happens when a new account is created. But, let’s be honest, that’s incredibly challenging to maintain. So, when a new opportunity enters into your CRM, if it hasn’t been set yet, that’s when you should define it as new business or an upsell.
How to comp on account hierarchies
To compensate on parent child accounts, consider treating every child and parent account as new business, each one as an upsell, or treating some as new business and some as upsells.
When thinking of rules on how to set parameters around sales compensation for account hierarchies, consider the questions we mentioned above:
Are you selling to a different decision-maker?
Is there a different domain name or website?
Is the headquarters on the child account different from the parent?
This will help determine if a child account is its own unique entity.
Generally, you should aim to reward full credit — both commission and quota progress — when it’s a unique entity.
But you could also consider compensating on new child accounts as new business without retiring quota. A third option that we’ve seen is splitting the commission between an AM and AE on upsells within the account hierarchy.
Another factor to look at when deciphering between new biz or upsells is the origin of the opportunity.
Was it a referral from the parent account? That could be an upsell.
Did the child account independently find you or did a rep reach out? We’d consider that a new account.
That’s a lot of words to say, classifying parent child accounts and crediting appropriately to your team is a complicated beast. It’s not impossible though, you just need to set up guidelines at the onset and be willing to adjust when it makes sense for your reps and your customers.
Sales enablement has evolved over the past few years from a trendy concept to a strategic investment for businesses. Today, sales enablement demands a sizable percentage of the budget. If you don’t know how to gauge the success of your sales enablement efforts, you may end up spending a lot of money in vain. Like any business venture, its return on investment requires constant evaluation and monitoring.
So, what is sales enablement? Essentially, sales enablement refers to the various tools and resources you give your sales team to help them perform better, such as a small business PBX phone system, content, and strategies.
Although there are many ways you can provide support, some are more impactful than others. Monitoring these key sales enablement metrics makes it easier for you to track your progress.
When any organization invests in new technology such as sales enablement software or even a telephone number for businesses, the main objective is to obtain value for money. Beyond the obvious advantages of team alignment, why spend time, money, and resources on a program if you won’t gain from it?
It might seem challenging to precisely gauge sales enablement’s impact since it offers so many advantages that are difficult to quantify, like increasing team alignment and productivity. So if you’re unsure where to start, these 10 essential metrics will make it easier to measure your sales enablement program.
Sales cycle length
Each of your sales representatives works a certain number of weekly hours. Of course, the more deals they can close during that period, the more money your company will bring in.
For several reasons, keeping track of the length of the sales cycle is essential. It assists you in defining the weak points in your sales process. Additionally, salespeople can wind up devoting a lot of time to activities that don’t actually provide value. Sales reps tend to invest valuable time on non-revenue tasks that don’t generate income. Among other advantages, recovering this wasted time can increase the likelihood that representatives will hit their targets.
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Consider the following points to better manage the length of your sales cycle:
By monitoring your lead conversion rate, you can assess the efficacy of the whole sales cycle. This can be done from the prospecting stage through the closing stage. Tracking the lead conversion rate will help you identify a baseline, which allows you to spot and react promptly to reductions.
Number of meetings planned
Unless you are completely dependent on an incoming pipeline, generating new business should be a part of your organization’s objectives. Monitoring sales activity data, such as the number of meetings your salespeople have planned, is an effective way to determine how successful their outreach efforts are.
Adherence to sales process
Your sales team must comply with the sales process to close profitable deals. Examine the set of behaviors you expect from your sales team at each step of the sales process.
Wait until all expected actions have been taken before proceeding with transactions. Despite the fact that the majority of CRM software does not monitor these actions, a manual tracking system may be implemented. Additionally, it would be useful to see which important selling items and behaviors your sales reps are overlooking.
Opportunities created
Monitoring the opportunities created by outbound reps in addition to the meetings they set up is a fantastic way to track pipeline-generation function efficiency. By keeping track of the opportunities that are created, you can more accurately evaluate your team’s ability to acquire and convert new business for brand awareness. Keeping track of the opportunities created will also allow you to assess your lead-to-opportunity ratio.
Performance of marketing materials
You should update your marketing materials regularly. Your team can deploy these marketing materials, including scripts, proposals, guidelines, and articles to help with sales.
The simplest way to manage marketing materials is through a continuous process such as effective inventory management. Marketing materials must be periodically updated to keep track of new information regarding your market and customers. Utilizing a content marketing agency that specializes in your respective industry will help you manage and market your content with the best results.
Quota fulfillment
Even if your sales representatives consistently schedule meetings and create opportunities, the rate at which they fulfill their quotas is an essential measure to gauge their success. To run a successful program that smashes your sales goals, reps need to work hard to hit their sales quota.
By monitoring quota attainment, you can assess individual performance, which may have an effect on sales compensation. This makes it easier to see which sales reps consistently meet their goals and which ones need further enablement support. It’s also useful to take a broader look at quota achievement. Which regions consistently fulfill their quota? Is the team’s quota met as a whole?
Since quota attainment will likely be closely aligned with the overall revenue goals for your business, it’s advisable to include it as one of the criteria for your sales enablement program.
Average win rate
A sales team’s “win rate” is calculated as the total number of opportunities you’ve won divided by the overall number of opportunities.
By carefully monitoring your win rate, you can better comprehend your sales team’s success rate. If your staff has the tools and resources required to close deals, they ought to have a high win rate.
If your average win rate is not what it should be, look for trends in unsuccessful deals to identify the root cause. It’s also worth speaking with your sales team to better understand where they require support and provide them with other programs or resources, such as Process Bliss business efficiency solutions. It goes without saying, having the right tools and information will enable them to close more deals.
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Sales pipeline
The sales pipeline is one of the most important KPIs for gauging the effectiveness of your enablement program. This is the most obvious sign of how effectively your enablement program is helping grow your team into successful salespeople.
If your organization can effectively onboard new employees and provide them with the pipeline they need to succeed, you should have a team that consistently delivers positive results.
Sales team NPS
One of the responsibilities of an enablement expert is to guarantee that the sales reps are supported and given the resources they need to succeed. If your HR department does internal surveys among employees, the sales team’s results can provide valuable insight and help you track your team’s NPS (Net Promoter Score). This reveals whether or not they are happy working for your company. Would they recommend your business to their friends and family?
The world is embracing hybrid working arrangements, which means it’s more challenging than ever to engage with your staff directly. Providing innovative communication tools such as a business cloud phone system might be necessary. Additionally, if your salespeople don’t believe they have the resources and tools they need to succeed or don’t feel a part of the culture of your company, they are more likely to leave.
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Use our free sales funnel resource to see how many meetings your team needs to book to hit quota.
Tanhaz Kamaly – Partnership Executive, UK, Dialpad UK
Tanhaz Kamaly is a Partnership Executive at Dialpad, a modern cloud-hosted business communications platform that turns conversations into the best opportunities, both for businesses and clients with features like the toll-free number for business by Dialpad. He is well-versed and passionate about helping companies work in constantly evolving contexts, anywhere, anytime. Tanhaz has also written for other domains such as Track-POD and Cybersecurity Insiders.
The sales rep hiring process has changed dramatically over the past few years.
SaaS recruiters conduct interviews almost exclusively over video now. Remote sales jobs have exploded in popularity, which has unlocked flexibility around work environments and salary accommodations for the sales representative role.
Even the power dynamic between the interviewer and the interviewee has shifted. Reps must be sold on the opportunity, not the other way around.
That’s especially true for top performers who can quickly hop between roles in search of the most lucrative one.
Did you know that 86% of reps ranked sales compensation as their top priority when it comes to job searching? That’s according to a survey we ran over the summer with more than 300 leaders and reps across the SaaS industry.
So, how can recruiters and hiring managers re-think sale rep hiring processes in today’s market?
There are a number of ways to go about this, but we want to focus on sales comp transparency throughout recruiting.
In doing so, you’re saving both your and the job seeker’s time in the case of the OTE not coming close to expectations. But even more, you’re establishing standardization across positions with the same title and making it more equitable.
“By leading with transparent OTE information, we can remove biases that can influence salary negotiations and instead ensure equal pay for equal qualifications,” said QuotaPath VP of Sales and Customer Success Caroline Tarpey.
If that hasn’t convinced you, just remember that an increasing number of states actually require companies by law to disclose salary info in job postings.
Simplifying sales compensation plans
In addition to including standardized salary and OTEs in job descriptions, you should also simplify your comp plans to add transparency to your sales rep hiring process.
This is a subject we talk about at length with RevOps, Finance, and Sales leaders and reps. But one department that benefits from a simplified commission plan that often gets overlooked is recruiting.
The more complexities and commission structures you add to your compensation strategy, the harder it is for your reps to understand it, your leaders to explain it, and your recruiters to sell it to top talent.
“I remember at a previous role, our sales development reps had three different components,” Angie said. “One plan included 20% variable pay tied to activity, 40% from sales accepted opportunities, and the remaining 40% was based on annual recurring revenue if that sales accepted opportunity closed.”
Now imagine explaining that to an entry-level SDR candidate.
“If you explain that to someone who has no sales background prior, you’re going to confuse your candidates,” Angie said. “If they don’t understand their comp plans, it’s harder for candidates to see a path to success in their new role.”
This can come at the end of your hiring manager’s initial conversation.
“When you move to the compensation discussion at the end, be sure to not only affirm the OTE but also the benefits the role provides (such as an attainable variable based on team trends, equity, health care),” Caroline said.
Then, allow candidates time to ask questions.
“This is also a wonderful time to communicate why your organization’s philosophy of standard OTEs at each level is such a benefit to them, and how they can expect to earn promotions to higher levels,” added Caroline.
Pro tip — use our Compensation Hub Earnings Curve as a visual to show earnings potential at various attainment levels.
Earnings Curve in Compensation Hub
Final thoughts on the sales rep hiring process
To ensure compensation transparency makes it into your recruiting process, add your details to your job descriptions.
Then, build a standard agenda for the recruiting screen and the hiring managers’ conversations to follow. This should include instructions to tell the candidate upfront that you’ll save time at the end of the meeting to discuss sales compensation plan examples.
“This assures them that they will not leave without covering that important piece and allows them to focus on the rest of the conversation first,” said Caroline.
About QuotaPath
QuotaPath’s commission tracking and earnings forecasting software bring clarity, alignment, and automation to every party tied to sales compensation.
Are you gathering rep feedback on sales compensation plans? If not, please start. Our Sr. Director of RevOps Ryan Milligan shared a few tips on what to ask and what to do with their feedback.
RevOps remains a relatively new field, with many organizations writing the job description for their first RevOps hire as we write this.
At QuotaPath, we’re slightly ahead in our RevOps practice, as we recently celebrated the one-year hiring anniversary of Sr. Director Ryan Milligan. We’ve learned a lot from him over the past 12 months, such as how to run a data-first sales practice that’s both more efficient and effective than before.
We watched him stand up a data warehouse, create a scoring system for customer health, geek out over SQL, and more.
But that’s not where he got his start at QuotaPath.
Instead of jumping head first into SQL, Ryan dedicated his first few weeks gathering feedback from every person on the sales team.
To this day, he continues to meet with reps one-on-one regularly.
“Sometimes RevOps leaders make the mistake of not asking the sales team what they need, what they see in the market, and how they think they should be measured,” Ryan said.
By gathering feedback from each person, Ryan said he learns where he should prioritize his attention and what motivates each person.
The latter is especially important as leaders begin planning out their 2023 sales compensation strategies.
Compensation Hub
Discover, compare, and build compensation plans. Customize compensation models using 9 variables.
Do you feel this comp plan is fair? Why or why not.
Are you incentivized? Why or why not.
Do you understand how you’re paid?
It’s imperative that you ask these questions with reps who aren’t driving the outcomes you aimed to achieve with your comp plan.
“You can figure out pretty quickly if it’s because of the plan that they’re not having success or something else,” Ryan said.
For instance, if the plan pays out higher percentage rates for multi-year deals but reps aren’t selling 2- to 3-year deals, this may indicate there isn’t a big enough difference between your base rate and your multi-year rate.
“Then you can think about, ‘How can I make this more lucrative to motivate you to drive that outcome,’” Ryan said.
One thing to note, is that if you’re going to ask your reps for feedback, you should have a plan in place for what happens to it.
“If you’re not planning to make any changes to the comp plan, and you know the decisions have already been made, don’t ask for feedback,” said Rosalyn Santa Elena, Founder and Chief Revenue Operations Officer at The RevOps Collective.
Similarly, if you collect feedback on sales compensation plans, you need to communicate with your reps what changes went into effect and why. Dedicate a meeting that guides them through the changes and how it impacts them. Show your math and how the company will support them in achieving their numbers.
Reversely, when feedback doesn’t lead to changes, you should update them accordingly and explain why.
“Sales reps tend to giver their RevOps counterparts more honest feedback than they do with their sales managers,” said Jessica Zangre, Head of RevOps with Syncari. “That loop is really important to keep that trust.”
Have a tool in place that makes compensation clear
To continue to build on that trust from your feedback sessions, give your reps full transparency into their real-time and forecasted commissions. Learn more about QuotaPath’s commission tracking and compensation management software by booking a time with our team today.
To survive and thrive in today’s business world, businesses must have a tried-and-true sales process or structure in place. This process is a required pathway that every salesman goes through before closing a deal.
A single-minded focus on success is essential for every sales endeavor, from designing a sales compensation plan to prospecting and eventually closing prospects. A company’s ability to close deals and keep its clients is severely hampered without a simplified sales process. When the business strategy isn’t supported by a thorough sales procedure, data loss, misunderstanding, and poor sales insights are the inevitable results.
This is where customer relationship management (CRM) software can transform your business.
Customer relationship management is more than just CRM; it also handles sales processes and yields much higher sales volumes. It’s obvious that CRM software functions have expanded beyond that of a simple tool used for contact management. Business leaders can better manage customer service and relationships with the help of modern CRM software, which provides everyone on the team with a unified view of data.
The success of your company depends on the effectiveness of your customer service. It’s clear that customers will only remain loyal to companies that can satisfy their increasingly high delivery requirements.
Image via Pexels
Your business needs the capacity to leverage personalized customer interactions and produce consistent user experiences across the board.
You need to think of your CRM software as a tool to increase productivity, enhance sales, and convert leads into customers. Effective use of customer relationship management software has been shown to boost revenue, productivity, and customer satisfaction scores.
Compensation Hub
Discover, compare, and build compensation plans. Customize compensation models using 9 variables.
It’s easy for mistakes to creep in when entering data manually. Consider a scenario in which a virtual call center agent must manually jot down a lead’s details. It’s possible that they’ll enter the wrong information or neglect to include the lead’s contact details.
To reduce the likelihood of these mistakes, customer relationship management systems for sales teams keep track of every interaction a salesperson has within the software, including making contact, making a sale, and following up. Activity feeds and contact profiles displayed in real time show these interactions. Filtering the feed by user or activity makes it easy to get the precise piece of information you need about a lead or an event.
There are also data enrichment tools and data enrichment API available in several sales CRMs that can pull information from other databases and add it to a prospect’s contact card in a matter of seconds. This not only lessens the possibility of representatives acquiring erroneous data but also significantly reduces the time spent exploring leads.
In addition to improving access to reliable and thorough prospect information, CRM software can help you spot performance or operational concerns that may be impeding your company’s expansion.
Connecting with your target customers
Any company that invests in customer relationship management software will see a substantial return on investment because of its ability to connect you with leads.
Without it, your team would have a difficult time prioritizing prospects and reaping the rewards of the effort invested in producing and recruiting new leads.
It’s crucial to have a plan in place for cultivating business opportunities of varying importance. Integrated CRM systems aid in providing a comprehensive picture of leads to relevant departments, allowing them to tailor engagements and swiftly reach important decision-makers.
Consolidating sales operations
Salespeople spend time doing anything from research and cold calling to deal management and going out into the field to close deals. Managers have a lot on their plates between keeping tabs on salespeople’s numbers, scheduling ride-alongs, and educating their staff. Things in your department are likely to become jampacked without a centralized framework for organizing these regular tasks.
Sales CRMs are built to streamline every step of the daily workflow. They can synchronize with your current set of channels and tools, such as your phone system’s automatic call distribution, to make it simple to handle everything in one place.
When information is gathered in one place, it becomes the most reliable source for the entire company. Salespeople get quick access to current data that they need to effectively pursue leads and complete deals. In addition, they don’t have to switch between applications or tabs to interact with leads via all available channels of contact (phone, email, or website chat box).
Boost efficiency in the workplace
Employing the right technology releases your staff from tedious processes and gives salespeople opportunities to advance. In customer service, manual tasks like data entry and locating contact information can be automated or removed. By automating various aspects of the sales, service, and marketing processes, you can free up your staff to focus on developing new leads and nurturing existing ones.
Improving customer service consistency
Consistency continues to be a defining factor in the efficiency of your customer service.
Even great sales reps and goods are only as valuable as the service they come with, and consistency has become the new gold standard. When all relevant teams have real-time access to a customer’s history, they can work together to swiftly deliver individualized communications and solutions. In a nutshell, consistency across communication channels fosters trust and increases the likelihood of future business.
Providing a great customer experience is as important as having an excellent landing page for your website.
Finding weak spots in the sales process
It might be difficult for businesses that don’t employ a sales CRM to analyze performance difficulties. To identify bottlenecks, they have to collect vast volumes of data into spreadsheets and fight with Excel formulae.
One of the best things about CRM software is that it automatically carries out data analysis. Data from your customers is combined into “smart reports” in real time, giving you a glimpse into the overall efficiency of your sales team.
To maximize efficiency, you can use CRM software to plan and prioritize your sales activities and tasks.
Decrease in sales caused by poor sales forecasting
With CRM sales systems, you can track and analyze your deals in real time. Representatives can see which opportunities are more likely to result in a sale and which ones are closers. Managers can more easily coordinate plans and construct effective deals with a clear picture of the pipeline.
Poor insight into sales performance.
Today’s customer relationship management (CRM) software allows users to create custom dashboards from which they can keep tabs on key metrics, assess progress against key performance indicators, and dig deeper into sales reports.
Poor decision-making due to inadequate data access
To streamline procedures and make educated, well-informed decisions, businesses are increasingly turning to CRM software solutions.
Points to consider when choosing sales CRM software
By now, you are well aware of the benefits of sales CRM and its potential for your business.
Now, let’s look at some of the most vital considerations for choosing CRM software.
Choosing CRM software can be difficult if you don’t know what features you need. Is it best to go with the most popular CRM for making sales? The most economical one, perhaps?
However, there are other factors to consider besides cost and reputation when selecting CRM software. Here are some things to think about when you evaluate the potential options for your company’s sales department.
Mobile-friendly application
People are spending less time at their desks these days since they are so frequently on the go for many reasons, including travel and fieldwork. You need access to your sales CRM wherever you go.
Modern sales CRM systems allow you to access your most vital information, reports, and even something as random as a release of liability template from any mobile device, at any time. Those companies that have implemented the change are more likely to meet or exceed their sales targets.
Security
Using a CRM system means storing sensitive client data on the cloud, where it can be accessed by hackers. There are ways to find out how safe the sales CRM that you’re considering is. For instance, you can assess whether the system has been updated to meet the requirements of data privacy regulations such as the General Data Protection Regulation (GDPR).
Integration
A CRM system can help you simplify your business in the same way that optimization tools like Process Bliss business processes do. As a result, you can tell you’ve found the right choice when the sales CRM platform you’re considering has integration capabilities.
Add-ons allow you to automate a large part of your sales process, including the addition of contacts, the scheduling of meetings, the creation and sending of invoices, the exchange of e-signed documents, and the creation of forms.
Improve operational efficiency with a sales CRM
Creating genuine connections with customers is the key to maintaining a steady flow of repeat business. By streamlining and automating routine administrative and data analysis activities, a sales CRM frees up time for reps to focus on developing relationships with prospects. Reps can move leads faster through the sales pipeline since they can build meaningful relationships with more prospects in less time.
About Tanhaz Kamaly – Partnership Executive, UK, Dialpad UK
Tanhaz Kamaly is a Partnership Executive at Dialpad, a modern cloud-hosted business communications platform that turns conversations into the best opportunities, both for businesses and clients with features like the auto attendant by Dialpad. He is well-versed and passionate about helping companies work in constantly evolving contexts, anywhere, anytime. Tanhaz has also written for other domains such as Not Going To Uni and Corporate Vision Magazine.
Every month, QuotaPath customers nominate one of their teammates for Quokka of the Month, a peer recognition award. We’re thrilled to announce our QuokkaPath October winner below. To nominate a teammate, see past winners, and learn more about this initiative, check out QuokkaPath.
Nominated for her strong partner relationship with her account executive and for being a top performer on her team, Amita Singh is October’s QuotaPath Quokka of the Month!
Amita, who has worked in tech sales previously at eBay and Oracle, today supports the digital coaching platform CoachHub as a Senior Learning & Development Specialist for their UK/Ireland (UKI) region.
Head of Sales Development Karla Gordovil nominated Amita, praising her ability to serve as a partner to the AE team and drive high conversion rates from meetings to open opportunities.
“The biggest challenge in this role is to be resilient while facing a lot of rejections, convincing the businesses to diverge their financial resources towards digital coaching or update their existing solutions,” said Amita. “To be successful in this role, one definitely needs to step into the customer’s shoes and understand their pain points. It’s crucial to understand exactly the problem you’re trying to solve and customize your pitch accordingly.”
They have been instrumental from day one in my journey and my success so far and helped me integrate into an entirely new culture.
What do you hope to accomplish next?
I strive to grow up the ladder in the sales org. and take on additional responsibilities. I would love to have more meaningful conversations with customers and play my part in the future of digital coaching.
How would you describe the working environment at CoachHub?
The work environment at CoachHub is extremely positive and collaborative, We have people from diverse backgrounds and experiences. And as they say, selling is a team sport, the diverse team at CoachHub brings in its own unique strengths and ways of solving problems. CoachHub definitely lives up to its core value of ‘culture first’ by letting people from different backgrounds and cultures to be their own selves and create a positive impact. We love celebrating each other’s successes and wins and together we form a huge community of sales folks working towards a common goal.
Lastly, what do you enjoy doing when you’re not at work?
When I’m not at work I’m mostly spending time with my friends and family or indulging in binge-watching.
Thanks for sharing, Amita! Congrats again, and cheers to your success.
About QuokkaPath
Like the “happiest animal on earth,” the quokka, we’re happiest when our customers excel!
That’s why we welcome customer nominations every month to celebrate someone on their team who has excelled in their role.
“Quokkas of the Months” earn permanent spots in our Quokka Hall of Fame. Plus, the winners, and those who nominated them, receive quokka-filled swag packs.
To nominate a teammate for November, submit your nominations here.
About QuotaPath
QuotaPath provides sales compensation and commission tracking solutions for GTM organizations. We blend an intuitive user experience with a highly technical backend to get Sales, RevOps, and Finance all on the same page when it comes to compensation.
To see if we’re the right fit for your organization, schedule a time to chat with our team.
Businesses expand internationally for many reasons. For instance, entering an unchartered market can offer new revenue opportunities, provide access to a broader talent pool, and allow product global brand exposure.
But with those lucrative opportunities come many challenges.
Specifically — the challenge of the unknown.
When companies expand internationally, they typically lack visibility into the buyers’ behavior, purchase power, and brand recognition. Strategies that work well for one company, or in one territory, won’t necessarily work for another.
As such, leaders need to proceed with caution.
Compensation Hub
Discover, compare, and build compensation plans. Customize compensation models using 9 variables.
Sales territory planning can be tricky, but it’s especially challenging to get new territories right with so many unknowns. The more you know, the easier it is to create territories that deliver results and support your sales reps.
Constant territory changes can frustrate and demotivate sales reps, which reduces your sales team’s productivity. And, territories with vastly different opportunities and income potential result in uneven compensation distribution across your sales team. This can cause reps to leave for more equitable opportunities elsewhere.
Best practices for territory planning
Now for the good stuff. Although entering a new territory poses its challenges, best practices exist to help.
Align territories so they are fair and equitable
Strive to give reps in the same role books of business that are equal in size and quality, so everyone has the same potential to achieve their goals and drive revenue, regardless of tenure.
Distribute opportunities evenly across the team
Use a round-robin distribution of new opportunities from the beginning so all team members have the same chance to succeed. Plus, as new reps join the organization, they’ll have the same growth experiences. This approach is scalable and prevents favoritism. Scalability facilitates fiscal planning, preventing over or under-hiring for new markets.
Give SDRs their own accounts
Don’t leave yourself with a pipeline shortfall due to SDR/AE pods. Give SDRs their own accounts that they’re fully responsible for. These should be accounts with the greatest probability of converting to opportunities. This gives SDRs a better chance to deeply understand their accounts and do everything possible to convert these ideal customer profiles (ICP) accounts.
If they aren’t successful in penetrating the account, they can put it back into nurture, and give someone else the opportunity to work it. And, if the SDR learns that the timing isn’t right due to a contract obligation ending on a certain date, the rep gets credit for obtaining that information and adding it to the CRM.
Plus, in this system, AEs have their own accounts they can self-source as well.
Leverage your ICP as you expand
Create your ideal customer profile (ICP) based on the characteristics of accounts that have historically signed the largest deals with your company. Look at things like employee count, user headcount, industry, and any software the business uses that interfaces with yours (if applicable). Create a list of prospective customers that match your ICP and evenly distribute them to your sales team.
When expanding, experiment with a variation of your ICP, and change only one characteristic — perhaps geographic location. Create a list of these and evenly distribute them to your team. This minimizes the risk carried by any one rep while you’re testing new ICPs. Then, expand on that ICP once you’ve proven it’s valid for your product.
Account scoring is multidimensional
Score accounts in various ways when assessing them for fit. Some ways to approach this include:
Fit against your ICP
Potential for future value or growth
Timing as to whether the account is ready to consider what you’re selling, for both new prospects and existing accounts to measure upsell potential
Customer health–consider things like if the account has found value in your product, are users logging into your solution frequently, how many users are logging in, is the account growing or scaling and is the account economically healthy
Remember to check with your SDR team to make sure they’re receiving good quality leads based on the prospect scoring. Adjust scoring as needed so you don’t waste reps’ time on bad leads.
Your Guide to Setting, Calculating and Tracking Sales Compensation
Design and execute a compensation strategy that rewards and motivates your reps, aligns to business goals, and drives revenue.
In new market territories, you don’t have a basis to set quotas or any way to know what quota attainment will be, so it’s best to eliminate decelerators and accelerators when creating your commission plan.
One element that is good to add in new territories is new logo bonuses. Getting a few early customers is crucial, so reward your reps for closing them. Consider offering an extra $1,000 for the first five new customers.
4. Do your research
Graham suggests that one way to overcome the OTE/pay mix difference between countries is to connect with people at companies in the region where you’re planning to expand and ask them.
5. Look at historical data to set initial quotas
Setting quotas for the first time in new territories can be tricky. One place to start is to look back at the early days of your company when you first launched. Look at the historical information from when you lacked marketing resources.
You can also model it like a new hire ramp period since you don’t just open a new market entirely cold. You likely have some customers in the region already and then start to build on your current customer base from there.
6. Consider offering a non-recoverable draw initially
Start with a comp plan with a guarantee of at least 70% of your variable. This is a lot like a non recoverable draw. For example, if your variable is $5K per month and reps get paid 10% on everything they sell, then they are guaranteed at least $3K per month for the first six months, like a non recoverable draw.
7. Start simple and adjust over time
Make your comp plan simple initially. A couple of comp plan structures to use for a new territory include Single Rate and Single-rate bonus.
Single Rate Bonus Compensation Plan
Understand that the first comp plan for a new territory is not perfect. You must be willing to change it. Handle this by telling people as you hire them, so they are prepared. Your plan should evolve as you get more data after 6 to 12 months. This will help you create a comp plan aligned with your business metrics and goals.
Bonus tips
Graham had a couple of non-comp related bonus tips:
Have a specific reason to be in the new territory.
Hire someone from a competitor — get an early employee who worked at a competitor in the new territory for a huge advantage as you expand.
It’s time to get started on your comp plan for a new territory
There are risks associated with expanding into new sales territories, but knowledge is power.
So, do your research and select the territory that’s the best match for your business. Design your new territories using the best practices listed above. Then consider Graham’s tips as you build a comp plan for a new territory.
Sales commissions can be complicated. Reduce friction and errors with QuotaPath and HubSpot commission tracking.This is a guest blog from HubSpot.
Sales teams across most industries earn variable compensation through a commission-based model. This approach often attracts top-tier sales reps who know they can close lots of deals, resulting in particularly high OTEs. Plus, for junior reps just getting started, variable pay acts as a great motivational tool to ramp up quickly.
But from a logistical standpoint, commission can be complicated.
Scratch that, commission IS complicated.
RevOps teams and finance leaders need to prepare to pay sales reps the exact amount every pay period. Since the number fluctuates between pay periods, errors are more common than they should be.
Did you know that 80% of companies admitted to paying sales commissions incorrectly due to human error, discrepancies, clawbacks, and more?
That’s astronomical, and frankly, unacceptable.
Fortunately, there’s a fix for that. Enter QuotaPath and HubSpot commission tracking.
HubSpot is an easy-to-use CRM that powers sales, marketing, and customer care activities to keep details about every prospect and customer in one place. When integrated with QuotaPath, HubSpot adds real-time commission tracking with deal and earnings data to its list of solutions.
There’s so much value in having one source of truth.
By syncing QuotaPath with HubSpot, users eliminate manual commission calculations, and with it, the risk of human error. The rep-friendly view also unlocks instant visibility into attainment and forecasted earnings data. This allows reps to see how their sales pipeline translates into future commissions.
Here are three ways that sales teams can use QuotaPath and HubSpot to prevent pay discrepancies, automate manual workflows, and ensure reps receive every cent of their rightfully earned commissions.
Save time, improve ROI, and reduce pay errors with QuotaPath and HubSpot commission tracking
3. RevOps teams can ensure variable compensation is right every time
The QuotaPath platform handles everything from designing and modeling compensation plans, to automated commission tracking and payouts.
All the underlying deal data in HubSpot feeds directly into QuotaPath so that commission info is always accurate and in real-time. No more double data entry. And no manual refreshes.
With shared dashboards, sales, RevOps, finance, and leadership have access to easier communication and greater clarity. Everyone’s looking at the same numbers, which reduces the discrepancies and allows everyone to focus on the job at hand.
By automating the commission process, RevOps, finance, and sales teams reduce the time spent managing payment and reduce the risk of errors and ASC-606 compliance issues.
Imagine a RevOps and finance team at a B2B SaaS company processing payroll.
Every month, they dig into the performance of each sales rep and see how much they’re owed in commission on top of their base pay.
Amounts differ for every rep according to their performance. One rep earns 8% on one deal and 10.5% on another that’s tied to a different product. The latter deal also unlocked an accelerator for the rep, which boosts the commission rate up to 14%. Oh, and there was a Q3 SPIF, too. Now rinse and repeat for 39 reps.
See? It’s a time-consuming process. And because deal data often won’t sync from a CRM to a company’s commission tracking platform, it’s a process that’s rife with error.
But with HubSpot and QuotaPath, sales rep deal data automatically flows from HubSpot to QuotaPath and an automated, accurate commission payout process follows.
It saves RevOps and finance teams an average of 17 hours on commissions and helps prevent pay discrepancies (like from a last-minute closed deal.)
QuotPath and HubSpot commission tracking
Compensation Hub
Discover, compare, and build compensation plans. Customize compensation models using 9 variables.
The more frequently you measure your progress toward a goal, the more likely you are to achieve it. That’s why companies typically see increases in quota attainment from 5 to 25% after implementing QuotaPath.
QuotaPath’s forecasting software capabilities
Build a Sales Funnel
Use our free sales funnel resource to see how many meetings your team needs to book to hit quota.
Choosing an appropriate commission structure is equally challenging. But with QuotaPath’s Compensation Hub, teams can plug in various figures and projections into the modeler and choose which comp plan makes sense for each new class of sales hires.
Onboard by your next commission cycle
Don’t guess about sales compensation
The most important way to keep your sales teams happy is to consistently pay them correctly and on time every pay period. Doing otherwise causes friction within the sales org and leads to turnover.
Ensure your compensation structures are transparent and paid out accurately with QuotaPath and HubSpot.
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