Sales podcasts we’re listening to in 2020

sales podcasts

You can’t read a book while you drive to a client meeting. It’s just as hard to sit and stare at YouTube when you have 80 other things on your to-do list demanding attention. That’s why sales podcasts are the gold at the end of the sales rainbow.

Tune into some of the best in the biz as they interview sales experts and share tips. It’s all to help you understand what you need to do to level up.

Why listen to sales podcasts?

Unlike a book that could take weeks or months to get through, you can consume podcast episodes in a single sitting. You can switch between streams, getting a larger cross-section of opinions and advice. It’s a stellar way to become more well-rounded and learn something valuable from every leading light who has experience and a way to record.

So, in no particular order, here are the sales podcasts we love:

1. The Sales Enablement Podcast with Andy Paul

In less than 45 minutes, noted coach and sales consultant Andy Paul digs in deep with names like Tiffani Bova and Grant Cardone. All come ready to spill their secrets of sales mastery. Paul has already churned out a whopping 750+ episodes’ worth of sales wisdom. Choice titles include “No One Escapes: Sales and Mental Health” and “AI and the Future of Sales Growth.” This podcast is an incredibly comprehensive collection of tips, tricks, and must-read techniques.

2. Sales Babble

Once upon a time, all salespeople wore suits with elbow patches and took their wares door to door. Today, sales looks drastically different, and sales advice should evolve, too. Sales Babble stands out from the crowd because it showcases advice that works for salespeople and non-professionals alike. Entrepreneurs, small business owners and anyone else who wants to discover a non-aggressive way to sell can find what they’re looking for here.

3. The Sales Hacker Podcast

Specifically geared toward those in B2B sales, The Sales Hacker Podcast offers two podcasts a week. One focuses on actionable tips, while the other is a more in-depth breakdown of effective sales strategies. Tuesdays feature the longer 50-minute episodes that bring in experienced investors, company founders and sales VPs for no-holds-barred chats. Fridays are reserved for fundamentals — perfect for anyone eager for a fresh look at the basics.

4. Sales Gravy

Sales Gravy has the honor of being the world’s most downloaded sales podcast. Host Jeb Blount excels at sales training, speeches and writing a cornucopia of bestselling books. His postings are a bit sporadic, but no worries — use the time in between to catch up on the longer episodes. The shorter ones (some are just 10-15 minutes) are perfect for packing wisdom into short commutes.

5. Women in Sales

Women now account for more than half of management and professional positions in the United States. While that’s some super positive growth, the percentage of women in sales has not fared as well. Only 39% of sales people are women, a negligible increase of just 3% over the last 10 years. Women in Sales speaks directly to current or aspiring female sales professionals with practical advice from women who have been there and conquered that.

6. Enterprise Sales Podcast

Many podcasts focus on bite-sized tips for obvious reasons. It’s easy for listeners to take a single nugget of an idea and run with it. It’s much harder to deep dive into important topics and do them justice — yet Enterprise Sales Podcast manages to do just that. Instead of quick fixes, ESP speaks to the smartest people in sales to see what makes them tick. Figure out how to create your own competitive advantage by putting in the time.

7. Predictable Revenue

Money talks. Sometimes, what it has to say isn’t so pretty. Sometimes there’s not even enough around to strike up a decent conversation. Predictable Revenue hosts Aaron Ross and Collin Stewart are up to their elbows in sales and revenue tips. Their goal? To help take salespeople through the entire funnel. Guests include noted SaaS experts who know firsthand what it takes to achieve meteoric growth.

8. The Art of Charm

Mastering sales requires a broad set of skills. The Art of Charm won’t teach you actual sales techniques, but you will learn the psychology, sociology and behavioral economics that influence consumers. These lessons have a plethora of applications. Use tidbits from sports psychologist Dr. Stan Beecham to shape a successful belief system, and see what NBA life coach David Nurse says can help you build unshakable confidence.

9. Get In The Door

What’s the first step to closing a sale? Getting in the door. Scott “The Professor” Plum and Bill Hellkamp have put together a value-packed podcast focused on getting attention and winning negotiations. Whether you need to overcome fear or work on your follow-through, these two sales experts are ready to guide you to the next level.

10. Make It Happen Monday

Sometimes it feels like the airwaves are cluttered with sales experts, but John Barrows has a client list that speaks volumes. Barrow brings his experience with clients such as LinkedIn and Salesforce to podcast listeners every Monday. Most topics are tailored to B2B sales. Others that deal with topics such as cold-calling strategies and design thinking apply to sales in many different industries.

11. Young Hustlers

You can search for podcasts with episodes that feature Grant Cardone and Jarrod Glandt. Or you can just listen their podcast and cut straight to the chase. You don’t have to be young or inexperienced to hustle. This duo’s special brand of sales tips and business advice is everything you need to start a business. Already employed? Learn how to leap to the top of the heap in your current position. It’s 21st-century smarts with the energy to match.

12. The Brutal Truth About Sales & Selling

Want to skip the bull and get to the bottom of why your competition is outselling you? Brian G. Burns doesn’t pull any punches, and in this case that’s a good thing. Instead of wasting time on fluff and small talk, Burns crams each podcast full of advice. Topics include cold calling, sales leadership, challenger selling, management, social media and so much more. The affiliated Sales Questions — Brutally Honest Answers even allows you to submit a sales question via LinkedIn.

13. In The Arena Podcast

Anthony Iannarino is a well-known sales coach who also authored The Lost Art of Closing. Anyone in sales can learn from Iannarino and his A-list panelists. That said, his lessons on managing sales teams really hit home for those new to supervisory roles. Topics such as long-distance leadership and understanding the buyer’s journey are great for anyone interested in better motivating and managing their team.

14. The Salesman Podcast

Host Will Barron publishes several shows a week. That’s helped The Salesman’s library grow to more than 550 episodes. Most focus on the soft skills needed for success in sales. Perhaps you feel like you should work on public speaking, body language or asking better questions. If so, you’ll get help — and hopefully motivation — from Barron and his laundry list of expert guests.

15. Hey Salespeople

Having your eye on a spot way up the corporate ladder means you need to constantly find new ways to pursue your goals. For those interested in careers in sales management, that means learning how to motivate a team, interpret data and scale strategically. Hey Salespeople explores the art and science of sales. All info comes courtesy of SalesLoft’s VP of Sales Strategy Jeremy Donovan and the best of the best from his Rolodex.

16. Sales Influence – Why People Buy

There’s only one true star in sales, and that’s the consumer. Everything hinges on the person with the money to spend. That’s why host Victor Antonio has an entire podcast consumed with “finding the why in how clients buy.” Get a handle on that, and you’re golden. There are also very timely topics like setting limits on virtual meetings that are great for anyone dealing with a work-from-home transition.

17. The #AskGaryVee Show Podcast

There’s no disputing that multitasking, fast-talking, hard-hitting entrepreneur Gary Vaynerchuk is an acquired taste. There’s also no disputing that a lot of people like what Gary Vee has to say. That’s why the guru’s YouTube show is now available in podcast form. Get ready to get swept along as Gary talks about cutting through the noise and letting go of the things that hold you back.

18. Sales Success Stories

For anyone who has ever looked at a top salesperson and wondered, “How are they doing that?!” this podcast explains it all. Sales Success Stories is a series of interviews by Scott Ingram. He ropes in top-of-the-heap salespeople to share the habits and influences that helped propel their careers at warp speed. The resulting tips are great for anyone in sales, and that includes everything from direct B2B to account management.

19. The Revenue Collective Podcast

Revenue Collective is a consortium of over 5000 sales leaders from all industries, markets, and locations. It would stand to reason that the podcast that shares their name would be excellent. It doesn’t disappoint. Having started in mid-2020 their catalog is easy to binge quickly. Among the episodes you’ll hear from the CEO of Gong, CEO of Outreach.io, CMO of Lessonly, and more!

Did I miss a must-listen sales podcast? Send it my way at graham@quotapath.com!

Now that you’ve brushed up on your sales skills through all these amazing podcasts, it’s time to start selling! And once you close deals, you’ll want to use QuotaPath to track your commissions. It’s easy and powerful.

Chief Sales Officer vs. Chief Revenue Officer, what’s the difference?

CSO vs. CRO, two people

Chief Sales Officer and Chief Revenue Officer. They’re the two positions typically tasked with leading a sales organization. They take care of everything from helping to build a winning sales strategy to leading the team to victory. But what are the differences between a CSO and a CRO?

What does a Chief Sales Officer do?

A Chief Sales Officer (CSO) is responsible for ensuring the team achieves target growth and meets sales revenue targets. They’re at the top of the sales hierarchy and frequently oversee sales VPs and Sales Managers. Those supervisors in turn oversee the salespeople who make up the bulk of the team.

Much of a CSO’s focus is on deals closing. They may take a more hands-on role with VIP clients to show there’s an executive closely involved with the account. However, mostly this means hiring, training, and scaling the sales team.

How much does a CSO make?

According to Salary.com, CSOs earned an average salary of $180K in base pay in 2023, with $182K in variable pay. That’s an average total compensation package of $362K.

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What does a Chief Revenue Officer do?

A Chief Revenue Officer (CRO) oversees the entire revenue organization. The exact job description depends on the organization, but their domain often includes:

  • New business sales
  • Marketing
  • Sales operations
  • Marketing operations
  • Renewals and upsells
  • Sales Development Reps (SDR)

Every dollar that rolls into an organization generally passes through the CRO or a program they run.

How much does a CRO make?

According to 2023 data from Salary.com, CROs make $362K in total compensation on average. CROs on the lower end earn about $182K and those on the higher end make north of $650K.

CSO vs CRO: The main differences

There is certainly some overlap between the Chief Sales Officer and Chief Revenue Officer positions. Both are essential cogs in the organization wheel. Both need to have solid interpersonal skills and knowledge of important technology. And both must have a vision of what a solid sales strategy looks like but be able to adapt as needed.

All that said, there are also differences.

Core responsibilities

Think of the CSO as the person most focused on closing deals. When it’s time to hustle for new business, the CSO is ready to act. A CRO oversees many other departments, including marketing, operations, and client renewals.

Daily to-do lists

The Chief Sales Officer has their finger on the pulse of sales, and that means daily check-ins on the sales team and monitoring all relevant numbers. They’re always busy analyzing sales data, refining sales strategies, and finding more ways to support the sales staff. Because CSOs are in charge of ensuring market penetration, they’re also devising ways for the team to generate and nurture leads.

Chief Revenue Officers are master multitaskers, constantly rotating their attention from department to department. They’ll spend each day checking in with marketing, sales, and customer service to gauge the company’s health. More of a big-picture position, a CRO always looks at every piece of the company to ensure they create a successful whole.

Professional background

Because CSOs are so hyper-focused on sales, they tend to come from a sales background. They’ve worked hard to scale the ranks. They may have started out as a newbie salesperson, hitting targets and winning over clients for years. If you had to close a deal, you’d want the CSO on the call because they know the entire process inside and out.

A CRO might come from a sales background, but they’re just as likely to have come up in marketing or operations. Their purpose on a conference call is to give input on strategy and long-term planning.

Complexity

In truth, both positions are complicated, stressful, and rewarding in equal measure.

CSOs are deeply entrenched in the never-resting sales engine. They have to flit from person to person, project to project, account to account. When they’re not busy making sure there are enough salespeople or forecasting the next quarter, they’re finding new ways to reach the company’s ideal customer profile. There are weekly goals, monthly goals, and quarterly goals to meet, and the pressure is omnipresent.

CROs are a new C-suite position born of the need to have an executive who can float between departments and be equally effective. It’s a more holistic approach to multichannel management. If you have an interest in sales as well as marketing and operations, you might enjoy being a CRO.

Some organizations have both a CSO and CRO. In that case, the CSO likely reports to the CRO, giving the Chief Revenue Officer more responsibility and say in many operational and sales situations.

Whatever your role is, QuotaPath can help you track your commissions. Set up takes just minutes, getting you closer to your goals in record time. To learn more about how you can understand earnings, streamline compensation management, and better motivate your team, sign up for a free account today.

Portrait of a good Chief Sales Officer (CSO)

chief sales officer

When you’re ready to take your sales company to the next level, it’s time to bring in a Chief Sales Officer. These industry pros know buyer personas and basic funnels inside and out. They’re legends of assessment, masterful leaders, and organization whizzes. In short, a good CSO can make your company great. Here’s what to look for and how to hire your next CSO.

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What is a Chief Sales Officer?

Chief Sales Officer (CSO) is the person tasked with overseeing a company’s revenue streams. Rather than solely managing salespeople, CSOs look at the big picture regarding generating revenue. Strategies include motivating the sales team, monitoring their growth, and facilitating partnerships between departments.

It’s easy to confuse CSO and Chief Revenue Officer (CRO). We’ve discussed the former, and the latter stands for Chief Revenue Officer. While the job descriptions are similar, CROs tend to be more focused on creating plans that help spur revenue. CSOs concentrate on executing those strategies and leading teams as they work towards a common goal. CROs also have their hands on more tasks. They might look at marketing as a tool or work with CRM. CSOs are all about sales, sales, sales.

What does a Chief Sales Officer do?

Chief Sales Officers are fixtures in the world of sales. Many of their duties have to do with helping their team achieve predetermined goals, like hitting a specific sales target or spurring overall growth. From their spot at the top of the corporate sales totem pole, CSOs often provide oversight for the VP of Sales and Sales Managers.

As part of their management responsibilities, CSOs may be involved in hiring and training new employees. Remember, your Chief Sales Officer is in charge of executing a sales strategy. It makes sense that they’d help choose the right person or people for the job.

What’s the typical background of a Chief Sales Officer?

There’s more than one way to become a Chief Sales Officer. Still, most candidates have some or all of the following boxes checked prior to applying:

  • Experience in different sales environments and niches. This may include time in corporations of varying sizes as well as both B2B and B2C sales.
  • Time as an SDR. Applicants who have been a Sales Development Representative have hands-on experience with outbound prospecting. This can come in useful when teaching others to usher leads through the sales funnel.
  • Individual contributions. It’s hard to teach sales if you haven’t made a lot of sales. Great CSOs have a proven track record of their own.
  • Success in other sales roles. This may include sales management positions and higher posts such as VP of Sales. It isn’t the titles that make an impact but rather the knowledge and skill that comes from coaching others.

What makes a good Chief Sales Officer?

Your CSO is responsible for constructing and implementing a winning sales strategy. It’s imperative they have the skills to pick a goal and help their team achieve it.

A good Chief Sales Officer excels at:

  • Sales. It goes without saying, but to manage salespeople you need to be a salesperson. The tricks of the trade you learned on the way up now benefit those now busy fine-tuning their technique.
  • Hiring. Hiring is an art form. It’s not enough to like an applicant. You have to be able to gauge how they’d mesh with your existing team. Sometimes it’s good to build a diverse team where everyone is good at something different. Other times, cohesion is paramount.
  • Spotting weaknesses. Sales plans aren’t set in stone. A great CSO can modify their blueprint to account for gaps in their team and accommodate unforeseen circumstances.
  • Taking chances. CSOs determine how and when to utilize resources. This may be an easy decision, or it could involve calculated risk.
  • Coaching. Teaching is a special skill. In sales, a leader has to have the trust of their team before they can coach them. They need patience and the ability to offer constructive criticism that builds morale and confidence without being lenient.
  • Accountability. CSOs must answer to their own bosses for missed quotas and dropping revenue. They have to hold their team accountable for mistakes. Both require confidence, introspection and a willingness to accept responsibility for the wins as well as the losses.

How to hire a Chief Sales Officer

It doesn’t take a keen eye or experienced mind to read a resume and tick off boxes for education and work history. But hiring a Chief Sales Officer is about much more than what’s written on the page. It’s vital to assess an interview subject on both their technical and soft skills. Look at the candidate as a whole, and consider how the wording of your job posting comes across to job seekers.

Many times, listing your opening on a standard job board brings in a ton of unqualified applicants. Instead, be proactive. Start by looking at VPs of Sales employed by growing companies. Bonus points if the company has been scaling steadily and the VP has been there for a while. That means they’ve played a role in the expansion and can bring that expertise to your team.

You can contract with an executive search firm. These specialty organizations know exactly what it takes to excel in a C-suite or other leadership position. They can take your criteria, add their own and see who fits.

Once you’ve hired the perfect CSO, it’s time for them to start tracking their team’s commissions and earnings. They can use QuotaPath to calculate commissions, track attainment, and motivate reps.

Sales commission draw explained

sales commission draws

In 2017, more than half of sales reps missed their quotas. A career in sales is the opposite of stability. Commission-based compensation is exciting when things are going well. When you’re new to the business or facing a tough market, relying on commission can feel significantly less thrilling. In some situations, a commission draw can help bridge the gap until conditions improve.

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What is a commission draw?

Since commission-based income is variable, sales reps can see huge variations in their payroll from month-to-month. A commission draw is an opportunity to borrow against future commissions. You get the money when you need it most and can pay for basic living expenses, such as bills and groceries. In a way, it’s similar to paycheck protection. There’s a good likelihood the money is coming, but having it now would prevent or lessen hardship.

There are two main types of sales commission draws:

  • Recoverable draw: With a recoverable draw, the sales rep eventually brings in enough commission to repay their advance. If the commission is more than the initial draw, the rep gets the overage. If it’s less than the draw, the employee is guaranteed the original advance.
  • Non-recoverable draw: Non-recoverable draws occur when a sales rep doesn’t earn enough commission to cover their draw amount. The rep typically gets to keep their advance, but this may spell an end to future draws.

How you choose to include a commission draw in your compensation package depends on your goal. Some companies use it to incentivize new hires throughout their sales onboarding. Others offer draws on a short-term basis during a transitional period. By flattening the payments out over several paychecks, it can also help make payroll much more predictable for those responsible for paychecks.

When should you use a sales commission draw?

There are several scenarios that might make sense to ask for or offer sales compensation before a commission is due. Helping out when times are tough can shield reps during changes within the company and prevent quality employees from leaving.

For reps who are starting out

A career in sales can be rewarding, but success doesn’t happen overnight. In fact, some experts say it can take as long as two to three years for a new rep to hit quota regularly. It takes time to learn the ropes and build up a client list. Once reps establish a routine and a rhythm, it’s easier to anticipate and plan for slow periods. In the beginning, though, a few down weeks or a subpar month can be devastating to their bank account.

A big project takes longer than expected to close

There’s a big deal pending, and someone on your team is about to get a check for a near-record amount. There’s just one problem. They’ve worked like crazy for three months to get from point A to Payday. Now the client’s net 30 terms mean they still have another few weeks before they have to settle their account.

A territory redesign

When mergers or account changes make it necessary to reconfigure sales territories, reps can see a temporary dip in commissions as they readjust. The ability to draw against commission eases the angst while everyone gets accustomed to their new portfolio and/or client lists.

Outside influences are wreaking havoc

New competitors. A risky product launch. Product recalls. A pandemic. Your #1 client goes bankrupt. Sometimes factors beyond your control have a very real, stressful impact on your finances.

When should you avoid a sales commission draw?

Offering a commission draw can be tricky for employers for several reasons:

  • It may require extra staff-hours. It takes time to estimate future commission. Someone has to calculate the percentage that might go to a specific employee and do the paperwork to generate an advance.
  • It could demotivate the rep. Commission-based compensation is effective because sales reps know that the harder they work, the more money they’re likely to bring home. Remove that incentive, and it’s possible that effort — and revenue — will drop.
  • The money may never get paid back. While commission draws don’t technically get repaid, reps are supposed to earn enough to cover their advance. When that doesn’t happen, the company is left to absorb the deficit.
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Can you use sales commission software for a commission draw?

Not only can you use sales commission software for a commission draw, you absolutely should. Most of those cons mentioned above can be mitigated if you have technology in your corner. Use QuotaPath to track all your commission needs. Set up takes just minutes, and then you’ll be able to understand earnings, automate payouts, and reduce mistakes.

What is incentive compensation?

incentive compensation

Learning how to motivate your sales team is one of the most important things you can learn as a leader. Some employees respond to gentle encouragement, while others need more direct feedback to get revved up. But there’s one type of motivation that’s almost universally effective: money. That’s where incentive compensation shines.

Learn all about incentive comp and how this fluid approach to payday could inspire your team to work harder and scale quickly.

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What is incentive compensation?

Many non-sales jobs come with a fixed income, meaning you get paid the same amount every paycheck no matter what. That’s ideal for anyone who thrives on stability, but that guaranteed biweekly deposit doesn’t do much to encourage an extra dose of hustle.

Sales incentive compensation is a type of variable compensation that awards earnings depending on how the team member performed. In other words, the more someone sells, the more money they get to take home.

Incentive compensation is commonly structured as base pay plus commission to help keep salespeople afloat in between deals. It’s also not unusual to see non-monetary incentives on offer. Prizes, free vacations, stock options and at-work perks can also inspire.

Who gets incentive compensation?

Incentive compensation is an option for anyone who has a quota. That includes SDRs, account managers, account executives, some customer success roles, etc.

For an incentive compensation plan to work, candidates must fit two criteria:

  • They must be given a number to hit so it’s possible to gauge performance in a quantifiable, objective way.
  • They must have opportunities to sell and a chance to showcase their unique brand of hustle.

Incentive based compensation can be a valuable tool both during recruitment and after your hires are hard at work. Do your part to create an effective system by being totally transparent. Every employee should know what types of compensation are on the table and how they can exponentially higher earnings.

Why hand out incentive compensation?

Being a salesperson is wonderfully liberating because you finally have at least some authority over your income. What you do informs how much you make. In other words, a career in sales means that the better you do, the more you get paid. That’s an attractive upside for job seekers interested in moving away from set salaries and pursuing professional growth.

For employers, handing out incentive compensation is like issuing a challenge to their entire team. It’s like you’re saying “Meet this objective and you win a big prize.”

Tips for creating an Incentive Compensation Program

1. Outline clear, realistic objectives

Give your employees goals to hit. These personal objectives should align with larger business objectives. They should also be attainable to keep employees motivated and generating revenue.

2. Emphasize the importance of organizational results

It’s great for salespeople to feel motivated by their own desire for success, but what the company needs matters too. Sales incentive programs can drive competitiveness, sometimes to the extreme. By splitting focus between individual quotas and organizational goals, you empower the entire team without capping individual results.

3. Create a pay structure

The obvious play is to compensate salespeople for hitting an overall goal, such as a quarterly sales quota. But there are other ways to structure financial incentives.

A SPIF, or sales performance incentive fund, encourages reps to push a particular item or portfolio. SPIFs are often used to promote a new feature launch or boost sales of a product line. The opportunity for immediate results is tempting, but there are downsides to offering a SPIF (also called a SPIFF or SPIV) too.

Some insiders believe that SPIFs encourage salespeople to push for sales at all costs when they should be giving clients what they need. Instead, they’re tempted to compel the buyer to go with the option that results in the best commission or bonus. The trick is to use short-term incentives programs such as SPIFs as a complement to a more long-term sales incentive program. One is exciting due to the speedy return. The other helps develop salesperson-client relationships and drive continued success.

Single-rate and multiple-rate bonuses as well as milestone bonuses are also worth exploring. If you need a hand creating your sales incentive compensation plan, I’m here to help!

4. Communicate expectations

Nobody can hit a target unless they know where and what it is. Outline your compensation program, and make sure everyone has a copy. Transparency is key, as is a plan that accounts for every position and reasonable circumstance.

Additionally, ensure your employees all have solid employee development plans in place. That way there is no ambiguity on how to progress and be promoted.

5. Incorporate supporting sales roles

It’s not just your salespeople making the magic happen. Customer service agents, lead qualifiers, techs, administrative support — they all deserve to have their contributions acknowledged, too. Include them in your sales compensation plan, even if the rewards aren’t as big and flashy.

6. Think beyond money

Surprise! Not all salespeople are motivated most by money. Financial rewards are wonderful, but there are other options worth exploring. Incentive programs can include:

  • Gift cards
  • Tickets to a show or sporting event
  • An invitation to a corporate retreat
  • Special merchandise
  • Travel rewards
  • About a hundred other things

Research what your team would want and make that the pot of gold at the end of the sales rainbow.

7. Budget for bonuses

Leave room in your budget to go above and beyond if team performance warrants it. Say you’ve decided to give out one big prize to the top seller. Then the entire term delivers way past expectations. Sure, they’re getting their normal commission. But wouldn’t it be nice to come up with a second and third prize last minute?

It’s entirely possible to plan secretly for tiered prizes for runners-up without announcing it first. In fact, the surprise factor could be an additional motivator the next time you’re running a sales contest.

8. Be prepared to pivot

When COVID-19 hit, business were forced to revisit their compensation plans. The goal was to help reps cope with the new normal and adapt to economic stress. Lowering quotas and removing decelerators and commission cliffs can prevent demotivation. You can also add in new more feasible incentives and reward other performance factors aside from total revenue. These measures may be temporary, but the goodwill and morale boost lasts a long time.

Types of Incentive Compensation

Incentive compensation can take many forms, and understanding which structure to use can be the key to motivating different segments of your sales team. From straightforward commissions to more complex SPIFs and multi-tier bonuses, the right compensation type will align with both your team’s roles and your business goals. Here’s a look at the main incentive options to consider:

  1. Base + Commission: Most commonly used for sales reps, this is the classic structure where earnings grow in direct relation to sales achievements.
  2. Bonuses and SPIFs: Targeted bonuses, like SPIFs (Sales Performance Incentive Funds), provide short-term motivation, often to drive specific behaviors, like pushing a new product.
  3. Milestone and Performance Bonuses: For goals beyond mere revenue, milestone bonuses can reward reps for hitting metrics like customer satisfaction or retention rates.
  4. Non-Monetary Rewards: Gift cards, trips, or public recognition can be a huge motivator for reps who value unique experiences or prestige.

When should you be using team incentives vs individual incentives?

Choosing between team-based and individual incentives depends on your organization’s goals and team dynamics. Team incentives are effective when you want to foster collaboration, like in complex sales cycles where support and customer success play significant roles. This approach builds camaraderie and rewards everyone involved in a successful outcome, from the account executive to support and implementation teams.

On the other hand, individual incentives work well when rewarding personal initiative or competition is likely to drive performance. Individual incentives are often best suited to roles where personal contribution is more measurable, like account executives or SDRs with specific targets. Balancing both types can reinforce a culture where individuals contribute to the team’s success while still being recognized for their unique achievements.

Key features of an incentive compensation tracking tool

An effective incentive compensation tracking tool helps both leaders and sales teams by providing transparency, real-time updates, and streamlined calculation processes. Here’s what to look for:

  1. Automated Calculations: Manual commission tracking is prone to errors, especially as teams scale. Automated tools eliminate calculation errors and save time by quickly adapting to different compensation structures, tiers, and bonuses.
  2. Real-Time Tracking: A dashboard that updates as deals close keeps reps informed about their earnings and motivates them as they approach targets.
  3. Customizable Reports: Leaders benefit from flexible reporting features that allow them to analyze trends, measure team performance, and make data-driven decisions.
  4. Visibility into Earnings: Salespeople thrive when they can see how their actions translate into compensation. A tool that shows progress toward goals and earnings potential helps boost motivation and transparency.
  5. Goal Management and Alerts: Tools that track quotas and notify reps as they hit milestones help reinforce goals and drive performance.

With the right tool, tracking incentive compensation becomes a seamless part of operations, motivating reps and helping leadership keep compensation aligned with business objectives. QuotaPath provides just that: visibility, automation, and actionable insights for sales teams to stay focused on their goals.

Tracking incentive compensation

The more salespeople you have, the harder it is to keep an eye on everyone’s numbers. Figuring out who is meeting or exceeding quotas can feel like trying to juggle a dozen balls coated in something desperately slippery. Luckily, QuotaPath can help. Our proprietary sales commission software can help your team understand earnings, track incentive compensation and so much more.

Interested in having more flexibility and control? Sign up for free today and see why people love QuotaPath.

QuotaPath is an industry-leading sales compensation software on G2

fall 2020 g2 awards quotapath

We started QuotaPath with a big goal: to transform the way companies track and pay commissions through an intuitive, automated, simple-to-use sales compensation software.

With that goal in mind, we’ve built the most adaptable solution for sales reps to finance and everyone in between. We’ve captured the hearts and minds of revenue professionals, who need a way to bring transparency and accuracy to the commission process. Our users have spoken up on G2, and we’re happy to announce that we scored big on G2’s recent Fall 2020 Market Report!

QuotaPath’s industry leading G2 badges

THANK YOU for helping us become an industry leader in the following categories: Sales Compensation Management, Sales Analytics, and Sales Performance Management. We beat out our competitors in several categories and we couldn’t have done it without you.

QuotaPath is a leader in Sales Compensation on G2

QuotaPath is a leader in Sales Analytics on G2

QuotaPath is a leader in Sales Compensation on G2

QuotaPath is a leader in Sales Compensation on G2

QuotaPath is a leader in Sales Compensation on G2

  • Most Implementable software: We ranked #1 out of all of our competitors for ease of setup, implementation time, and user adoption. This has been top of mind since the beginning of QuotaPath. We set out to build a fully automated solution that eliminates the need for spreadsheets. Our code-free Comp Plan Builder means that you can build and assign comp plans in minutes. And you never have to rely on our team to make changes as your compensation changes. You can have a built out Workspace with your CRM data integrated in hours, just in time to run your next commission cycle.
  • Best Support: Our CS team is here to support you through your commission journey in whatever way you need. We can help you onboard your team, set up your plans, and sync your CRM. We’ll be as hands-on as you need, at no additional cost to you.
  • Sales Compensation Leader: Sales compensation software… it’s what we live and breathe! With QuotaPath, reps no longer have to wonder why they earned what they did because they have full visibility into their commission and earnings. Sales leaders and ops can reduce stress and save hours each month when it’s time to run commissions for their team. No more errors or back-and-forth, just happy, motivated teams.
  • Best Relationship with our buyers: Our sales team does way more than the average salespeople. We’re here to grow with you. We see hundreds, even thousands of comp plans, and can help consult you on yours if you’d like us to. We also take all of our customer feedback to heart. It’s a huge reason why we’re the leading sales compensation and commission tracking tool. We often hear “it just works” and this is music to our ears. We believe that commission software should elevate your process, not hinder it. Becoming a QuotaPath customer means joining our community of revenue professionals.
  • High Performer for Mid-Market: We support organizations of all shapes and sizes, in all different industries. Whether you’re an individual contributor or lead a team of 100 salespeople, we can help you with commissions. And this goes for comp plans too. No matter how intricate or complex your comp structure is, our platform can handle it.

Quick tips: What does MBO stand for?

MBOs

“Success” is a big word, but it’s also a vague one. It’s hard to figure out whether your sales team is meeting goals if you don’t have a way to analyze and quantify progress. For managers, a larger issue is learning how to amplify your team’s performance in a way that’s universally understood. MBO can help.

Here’s some quick insight for anyone who wonders “what does MBO stand for?” or wants a better way to motivate salespeople.

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What Does MBO Stand For?

MBO stands for “management by objectives.” This management strategy aims to improve organizational performance using clearly defined objectives. A key component is that these objectives are decided as a group. Sales management and individual contributors work together to determine the goals.

MBO advocates say that implementing goals the entire team agrees upon leads to greater employee participation and commitment. It ensures everyone is working toward a common goal — outline your targets and remove the potential for confusion. The purpose of MBO is to align all parties involved toward a shared goal.

Why use MBO in sales?

In addition to serving as a motivator, MBO has other advantages, such as informing sales strategy. Goal-setting and planning go hand-in-hand. Once you find out where you want to go, it’s easier to map out how to get there. Management by objectives decentralizes authority, bringing management and employees together in pursuit of shared achievement.

For sales reps, MBO offers clarity that can help increase commission. Understanding expectations and removing confusion is a great way to awaken ambition and stoke excitement.

How can you track MBOs?

Some critics of MBO say that objective-based management can be both time-consuming and costly. Using a management information system that gauges performance and tracks achievements as they relate to the outlined objectives can help immensely.

QuotaPath’s commission tracking software is built with revenue-related objectives in mind. It’s easy for reps to see how much they’re earning from every deal and how close they are to hitting their quota. Team leaders can keep an eye on the leader board while using the forecasting feature to predict success and test “what if” scenarios.

For a tool to help you use MBO to your advantage, sign up for QuotaPath today.

Moving up: how to become a Sales Manager

how to become a sales manager

There are a lot of ways to “make it” in sales. Some love to be totally hands on, sticking with customer-facing positions that include tons of daily interaction with a diverse array of personalities. Others prefer a more supervisory role. For anyone who craves advancement, learning how to become a Sales Manager could be the ticket to a successful career in a growing industry.

What does a Sales Manager do?

Just as the title suggests, Sales Managers supervise a team of salespeople. Before that quick description conjures up too many images of The Office’s Michael Scott, know that managing is so much more than simple oversight. Managing is about creating an environment that facilitates your team’s success. This could mean acting as backup during a crucial sales pitch or offering coaching to help them close on their own.

More specifically, Sales Managers may be asked to:

  • Determine sales territories and relevant staffing
  • Set goals and sales quotas
  • Construct sales plans for their team as well as individual team members
  • Analyze sales data and look for ways to improve
  • Offer opportunities for ongoing training
  • Address customer complaints
  • Determine special pricing and other discount programs
  • Participate in hiring and firing

There may be several types of levels of Sales Managers in a single organization. Lower-level Sales Managers work directly with sales reps on a daily basis. They’re typically more focused on guiding individual reps and ushering the team toward revenue targets. Managers who act as head of a sales division or broader territory tend to focus more on big-picture stuff. Instead of sitting down with reps, they’re busy developing a comprehensive sales strategy. There are even Sales Managers who are focused on partner relationships. These managers manage partner firms or individuals at those partners.

Essential Skills

Not everyone can be a Sales Manager. It’s also not easy to go to school for sales management; most colleges don’t offer an MBA in Sales Management. Effective Sales Managers typically possess dynamic personalities and enjoy being in a leadership role. They’re also invested in the success of others. They are likely to be outgoing and assertive and have the ability to motivate others to be just as enthusiastic.

Other essential skills of a Sales Manager include:

  • Spotting Talent: A Sales Manager is only as good as their team. Being able to wade through a stack of resumes and identify who would be a good fit is important.
  • Coaching: Sales Managers coach new hires to help them hit the ground running. They also work with existing team members to identify ways they can improve.
  • Leadership: The ability to lead goes hand in hand with the ability to coach. After all, people want to learn from managers who have first-hand knowledge of the best way to score a meeting or close a sale. Leaders don’t just talk about motivation, they actually motivate.
  • Multitasking: In sales, no two days are exactly the same. Sales managers have to be able to pivot from staff training to working with a buyer in the blink of an eye. The bigger the team, the more critical it is for the person in charge to be able to split their focus without sacrificing results.
  • Experimenting: Adaptability and agility are vital in sales. Managers need to be the first ones to volunteer for forward-thinking approaches, like a new sales technique or cutting-edge software.
  • “Managing Up”: For mid-level managers, their position in the hierarchy is doubly complex. Even as they help their subordinates, these managers need to be able to assist a boss who may be overworked or overwhelmed.

You might want to become a Sales Manager if

Not everyone is cut out for management, and that’s okay. There are some major perks to becoming a supervisor. There’s also a lot of stress involved. You may find you don’t enjoy managing a team as much as you enjoy being part of one. Do you like to mentor and coach people? Do you derive satisfaction from helping others achieve their goals? If so, a career as a Sales Manager may be right up your alley.

Note, though, that managing often pays less than a full-time sales role. According to the U.S. Bureau of Labor Statistics, Sales Managers make an average of $126,640 per year. That’s a lot of cash for a position that typically requires less than five years of experience. On the other hand, very talented sales reps can make a generous base salary while also generating commission. That could take them well over that $126k mark, surpassing a Sales Manager’s take home.
The job growth outlook for Sales Managers is about 4%, which is on par for the national average. All told, that spells a lot of potential for anyone with the skills and drive to succeed.

How to become a Sales Manager: expressing your interest to management

If you’re in sales and looking to move up, the first step is letting upper management know you’re interested in pursuing a new role. Ask for a meeting and start by outlining your experience and what you think you’d bring to a management position.

After you’ve made your interest known, ask for mentorship opportunities. The move from sales rep to supervisor will feel far less risky falling behind in your current position while you pursue a new one. You can’t be a great Sales Manager if you’re not great at sales. Chances are the powers-that-be will keep a close eye on your numbers as they decide who gets to sit in the empty corner office.

Ready to move up? If you think you’re the best person for that vacant sales management job, it could very well be your time to step up. Shine up your resume, sit down with your mentor, and put a plan in place. The next step in your career could be closer than you think.

Once you become a Sales Manager, now is the time to help your sales team hit their quotas and earn commission. If you need a way to track your team’s commissions, QuotaPath is here to help.

13 cold calling tips from sales experts

cold calling tips

At QuotaPath, we firmly believe that the cold call is alive and well. In order to prove that out, we asked some top salespeople for their number one cold calling tip. Here’s what they had to say!

First name basis

“Getting past the receptionist can be difficult for those new to cold calling and even experienced salespeople. That’s why I like to research the company beforehand and at least have the name of one person working there.

I then call into the company asking for the person by their first name only very casually, giving the receptionist the impression I know this person. This gets me past the receptionist 90% of the time.”

Ryan Bradshaw, Director of Sales at Apollo Technical

Smile and dial

“My number 1 tip is to ‘smile while you dial’. As cheesy as that advice sounds, it’s important that sales professionals understand the importance of tone of voice. Your tone of voice is equally, sometimes more, important than the actual message you’re saying.”

Evan Donahue, Sales and Recruiting Manager at IWR

Be positive and energetic

“When making cold calls, smile. Be positive, kind, and remember that energy is contagious! If you aren’t excited about why you are calling how can a prospect expect to be? Bring up lighthearted topics briefly and use humor and laughter when appropriate. Communicate in a way that you are delivering good news. Positive attitudes drive sales.”

Lauren Cohen, Commercial Real Estate Leasing Executive & Certified Executive Coach

Assume the sale

“My number one cold calling tip is to always assume the sale. If you’re in the business of selling credit cards, don’t ask the client if they want the credit card. Instead, assume they want the credit card and ask them which credit card they would like. Offer them options that only you are comfortable with, meaning that you don’t offer not taking a credit card as an option. Now obviously you don’t want to force anything on the prospect, but if you assume the sale, you’re more likely to get a yes.”

Jack Choros, Sales Manager at IronMonk

Prepare for the discussion

“You have 10 seconds to show you’re worth referring to, so separate yourself from other callers. Switch the attention on your prospect by bringing in your analysis and personalizing the call once you have presented yourself.

For example: With praise, you might open on a recent professional achievement that you have come across through analysis.”

Eliza Nimmich, Co-Founder/COO at Learnt

Anchor the conversation

“Start each call with an anchor point. For example, you could call and say, ‘Hi, my name is Michael and I found you on LinkedIn’ or, ‘we are a service provider for your competitor, XYZ company.’ By providing some point of familiarity, you move from being one of the 7+ billion potential internet strangers, and someone that is a known entity is some way. From there, you can start to work to develop a conversation and relationship.”

Michael Alexis, CEO at TeamBuilding

Research first

“The most effective way to conduct cold calling is to avoid sounding like it is a cold call. We’ve all experienced cold calls. ‘Is this Andrew? Is this a good time to talk?’ Do the research you need to in advance so that you know who to speak to and what their pain points and customers are.

Research doesn’t need to be time-consuming. A simple search on LinkedIn or at a press release could reveal a lot about who is in charge of marketing, for instance. The contact that is listed on a public press release is a much better starting point than calling the general business line.”

Katie Zillmer, Account Director at KitelyTech

Set a goal beforehand

“Don’t place the call unless you have a clear goal in mind for the conversation. This goal should be something small, which gets the prospect into the habit of saying yes. For example, the goal might be to confirm a prospect’s email or to verify the person on the other end of the line handles strategic purchasing. Setting a goal for each call will not only help keep your conversation on track, but it will also make you sound more confident, which, in turn, will increase the chance of a follow-up meeting.”

Allison Potts, Senior Business Analyst at FitSmallBusiness

Try calling off-hours

“My number one tip for cold calling is to call before or after regular work hours. Typically, the decision-maker works longer hours than their gatekeepers and you’ll be able to get to connect with them more easily first thing in the morning or after the typical 9-5 day is done.”

Tom Pelisson, Head of Partnerships at Rejoiner

Listen intently

“My number one cold calling tip is to be a good listener. This may be easier said than done especially when cold calling. However, in the aggregate, you can learn a lot from your calls when you listen. You can learn what your clients are looking for and how to meet those needs in a short explanation so that you can find a way to engage and ultimately see to those clients. If you are pushy and busy telling them what you have to offer, then it can be difficult to really identify how you can provide a solution to their problem with your service.”

Scott Simrall, Senior Sales Representative at MyCorporation.com

Call in front of a mirror

“My best tip in helping salespeople succeed in cold calling is to have a mirror in front of them while making their calls. Even though your prospect doesn’t actually see you they do feel your energy. When you look in the mirror you quickly realize if you’re bringing an upbeat and energetic feel or not. It adds a real feel to ‘smiling and dialing’.”

Jonathan Kellert, Regional Vice President at Primerica

Use social proof

“One of the best tricks that has worked for us in cold calling is using social media proof in the sales pitch. We come up with a list of past and present customers who resemble the qualities of our potential buyer. We anticipate the fact that our leads want to know who else we have worked with and what were the results. We back up our customers’ testimonials with stats and numbers from social media to prove our claims and work on a great storytelling approach to get our lead excited hearing more from us. This has absolutely worked for our team in terms of converting cold leads into paying clients.”

Michael Hammelburger, CEO at Expense Reduction Group

Identify pain first

“To ace the cold calling, the number one technique that I can give you is: never pitch prematurely. First, find the pain point of your prospect, this can be done through some research about the company beforehand or during the conversation. Once you have created the environment of interest over call, pitch him/her the solution you are providing. Moreover, in doing so, remember that the time for yes/no questions is over. Ask your prospect open-ended questions with the fresh and enthusiastic tone because your old school monotonous tone cold calling strategies are not fruitful in 2020.”

Sarah Sibtain, Sales Manager at The Fashion Jacket

After you’ve used these tips to navigate your cold-call, transition to the pricing conversation with ease using these tips from SalesRight. Now that you read through these cold calling tips, time to hit the phone! And because you’re going to crush your sales quota, you’ll need a way to track your commissions. That’s where QuotaPath comes in handy!

Things you should do as a new Sales Manager

new sales manager best practices

This is a guest post from Lily Youn Jaroszewski, Director of Sales at TeleVet. Interested in writing for us? Contact info@quotapath.com.


Going from being an individual contributor to a sales manager is a whole new experience. You’re no longer just responsible for your own number but now you’re responsible for several people’s numbers and your own. If you’re like me, you might have had imposter syndrome no matter how ready you thought you were for the role. Having started my career at a startup as a Sales Development Representative to making my way into a Director of Sales role, there’s a lot of guidance I received that helped me get out of that mindset. So if you’re an individual contributor looking to become a manager, a leader within a team, or are a new manager here are a few tips that can help you start your leadership career on the right track.

First 1 on 1 meeting with your new hire

  • Have a 1 on 1 with your new team member. Do this immediately to understand how they learn best. Are they a visual, hands-on, or auditory learner or maybe it’s a combination of those. Apply that during coaching sessions to see their ramp time decrease. Also, provide insights on how you normally communicate as well so they know what to expect from you as their leader.
  • Learn about why this person wanted to join your company and team. Learn their personal and professional goals. You probably asked this during their interview, but that 30-minute chat with someone under pressure might not give you the full picture you get once they’re hired.
  • Be consistent. Holding weekly 1 on 1s with a specific structure and expectation will foster better communication and goal alignment with your team.

Goals/Quota attainment:

  • Set realistic goals. Whether that be outbound activities for the week or demo sets. You can make it attainable by looking at the previous week’s or month’s number.
  • Align day to day with the overall picture. Sales is a grind. Your team is prospecting, making those dials, objection handling, setting demos and doing it all over again, and burnout is real. As a leader, it’s helpful to provide insights on how their daily, weekly activities impact their overall monthly numbers. But don’t forget what that person cares about: path to promotion, company goal, and commission payout to have that down payment for a new car or house.
  • Have a visual. Physically show your reps week over week with how their work is getting them closer to their payout or quota attainment. It can be a huge motivator when you can see how one more demo occurred, Sales Accepted Opportunity, or closed/won deal could get you to the next pay scale and also toward your team and company goal.

Communication:

  • Ask for feedback. Getting feedback can be tough whether it’s from your boss, direct report, or colleague, but it’s important for your growth and for your team to grow. The fact your team knows that you’re open to feedback can have a ripple effect and have them be receptive to your feedback. This can increase creativity and collaboration in resolving issues and reduce rep turnover.
  • Take all feedback/communication seriously. We’re all human and we make mistakes, whether we’ve been a manager for six months or six years there’s always room for growth. Whether you can act on the feedback immediately or not it’s important to close the loop and let your team members know you heard them and are actively working on it.
  • Give them the “Why” when asking them to do something. Have you ever had someone tell you “Just do it because I said.”? I have, and when I don’t know why I’m doing something I tend to not do it properly or can’t do more than what I’m told because I don’t know what type of outcome it’s supposed to yield. Explaining to your team why you’re asking them to do something opens the door for better understanding, more creativity, and investment from them, thus better results.

Overall, there’s so much you can do as a leader to help your team, and one of the biggest things I stick with is constantly asking myself am I handling this situation with a growth mindset or a fixed mindset? The fact that you’ve read this means you’re in the growth mindset which is exciting, so keep it up as it’ll yield positive results.

Health + Entrepreneurship: Balancing hustle and burnout

health and entrepreneurship

I woke up with hives all over my body. I tried to stand up but my legs gave out. I hit the floor.

Something was very wrong.

It felt like arthritis, the flu, and some sort of infection rolled into one. I’d never felt so miserable. I went to the hospital and ended up staying for six days.

Rather than relax, I worried about work. I’d beaten the odds and helped launch a fast-growing startup called TrendKite. By January 2017 (when this story takes place), my company had 300 employees and $25 million in annual revenue. I was supposed to be in New York closing the largest deal in company history. Instead, I was in a hospital bed staring at my swollen hands.

In today’s hustle culture, where people are expected to grind from sun-up to sun-down, startup founders like me are pressured to go non-stop. It’s an unsafe climate. Startup founders are twice as likely to suffer from depression, psychiatric hospitalization, and suicidal thoughts as the general population. I didn’t have those issues, but I did drink tons of coffee, rarely slept a solid eight hours, and stressed night and day. I stressed about my 100-person sales team, pleasing our board, and cultivating a great company culture. I also stressed about moving my family back to Philadelphia after years in Austin. Who cared if I ate breakfast? Nobody.

It was all too much, and my body simply gave out.

Following my release from the hospital, I still felt crummy, but went right back to work. Two weeks later, I spoke in front of the entire company. Once I got off stage, I collapsed. I went right back into the hospital and finally took a step back from work.

Turns out there was a 4 millimeter ulcer in my throat. An antibiotic had gotten lodged in the ulcer (gross, I know) and made my body try to kill things it shouldn’t be trying to kill. I lost 30 pounds from a combination of illness and a hastily deployed fruit-and-vegetable-only diet. I spent six weeks in the hospital scared out of my mind. I was scared of not finishing something I started. I was scared of letting my team down. I was scared of letting my family down. I was scared that I couldn’t protect anybody because I couldn’t protect myself.

I knew I had to make some serious changes.

I’ll always be a workaholic. But I’ve learned that if I’m not healthy, I can’t be my best at work. If I don’t accomplish everything on my to-do list, that’s okay. If I strive for 100% and hit 70%, that’s okay.

I drink more water. I’m eating healthier and exercising. People actually started telling me, “Your skin is glowing.” I was just getting the image of my hives out of my mind, now people are telling me I’m glowing? Unreal.

I gained a deeper appreciation for those struggling with unseen illnesses. Mental health issues. Auto-immune diseases. Fibromyalgia. People might look perfectly healthy but they could be in intense, invisible pain.

As for my company, everything was just fine without me. My team stepped up big time, kept clients happy, and closed deals. In fact, January 2017 was our best month ever. Two years later, TrendKite was acquired by Cision for $225 million.

My family and I moved back to Philly and I started another company called QuotaPath. I’m just as excited, energized, and passionate about success as I was when I started TrendKite — but I’m no longer letting stress run my life. The journey is far more important than the destination. We must be happy and fulfilled by the work we’re doing today rather than constantly dreaming about the next deal, the bigger house, or the next vacation.

I’m sharing my story because founders, early-stage employees, and executives are particularly susceptible to running themselves into the ground. ‘Hustle culture’ has gone too far. We need to start caring for our mental and physical health — not just revenue and client lists. We can hustle without running our bodies ragged. Yes, it’s important to eat breakfast. Yes, it’s important to exercise. Yes, it’s important to spend time with our families. Don’t let a venture capitalist or motivational YouTuber tell you any different.

Stop using “uncapped commission” in your sales job descriptions

four charts spanning January through April

There are a lot of red flags you should be aware of when looking for sales job postings. When I see a job description that says someone needs to be “competitive,” I assume that means the sales team doesn’t collaborate. Job postings that say “sales ninja” make me roll my eyes. The worst of them all is “uncapped commission.”

What is uncapped commission?

Uncapped commission means that there is no limit to the amount of commission you can earn on the deals you sell. You may have also heard it referred to as unlimited commission. If you hit 200% of your quota, you’re going to earn more than if you sold 100% of quota. Likewise, if you hit 300% of your quota, you’re going to earn more than if you sold 200% of quota.

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Why “uncapped commission” should scare you

Wait a minute, shouldn’t I be happy that the sales organization isn’t capping my commissions? Absolutely! A sales leader who caps commissions is (generally) not one you want to work for. Simply put, if a company lists “uncapped commission” in the job description they don’t have a good understanding of how to pay salespeople. Keep commissions uncapped. Listing this as a perk is like listing “desk and phone” under perks.

What it usually translates to

You’re going to be underpaid. A company should be able to tell you what percent of their sales team hits quota every month. They should be able to tell you how much their average salesperson is making per month in commission. Not just the top seller, the average seller.
It also means that the company thinks salespeople only lean on money for motivation. While it’s true that most sales reps find their motivation from money, a number of other factors can inspire them to work harder.

Alternatives to “uncapped commission”

Clearly state the on-target earnings (OTE) in the job description! If you don’t know your on-target earnings, you can use QuotaPath’s Sales Compensation Calculator. Because OTE is base salary plus commission, this number can be misleading as well though. Ensure you declare what the base salary is and what the on-target commissions are. Sales organizations should have a clear promotion track and a fair and balanced compensation structure that applies to everyone. If everyone on your sales team has a different salary/OTE, you’re likely underpaying people of color and women. Don’t feel comfortable laying out the exact OTE? Simply stating that the role is a base + commission is sufficient.

If you need a hand calculating your team’s commissions, QuotaPath is a powerful, simple commission tracking software.