Getting crafty with comp plans to maximize revenue efficiencies

Since the end of 2022, investors across the tech industry have tightened their reins on their portfolio companies.

As a result, business efficiency metrics, such as profitability and line of sight tocash flow, are a top priority for most SaaS companies and startups.

OuotaPath hosted the webinar “Getting crafty with comp plans to maximize revenue efficiencies,” ofeaturing our VP of Finance Ryan Macia, and our Sr. Director of RevOps Ryan Milligan

Compensation levers to address GRR, CAC, and more:

For an account executive comp plan, the Ryans suggested the following.

Solving for Retention

  • Encourage multi-year deals with a SPIF
  • Use higher rates for customer segments with higher retention rates (ICP vs Not)

Addressing Gross Margin

  • Incentives for pricing protection
  • Decelerators on lower margin deals

Promoting Cash Flow

  • Net 30-60-90 SPIF
  • Payouts eligibility 
  • Decelerators for monthly deals

What about account managers?

Solving for Retention

  • Incentivize early renewals
  • GRR-based plans (focus on revenue protection over expansion)
  • Multi-year renewals & contract conversions

Increasing Gross Margin

  • Increase rates for higher margin renewals
  • Cross-sell/upsell drivers

And, don’t forget to pay attention to these 5 guard rails when considering changes:

  1. Understand your effective rates
  2. Avoid overcomplicating your comp plans (can you explain it to a friend easily?)
  3. Give your reps visibility into how they can move the metric your board wants you focused on
  4. Don’t reinvent the wheel. We’ve got free comp plan templates to help. 

“Remember, what gets incentivized gets influenced.”

— Ryan Macia, VP of Finance

About QuotaPath

QuotaPath aligns and motivates growing revenue teams by automating and providing visibility into real-time and forecasted earnings and attainment. Partner with QuotaPath on comp plan designs that are simple and effective and run our commission tracking and sales compensation software to automate the entire process. To learn more, schedule a demo with our team or start a free 30-day trial.


Guide to Mastering Sales Kick Off Excellence
Guide: Mastering Sales Kickoff Excellence

With this playbook you'll, learn what it takes to strike success at your sales kickoff — including how to get your sales team hyped for the year ahead (and their new comp plans).

Download the Guide
Report: Solving the Biggest Sales Compensation Challenges

Insights from 450 RevOps, Finance and Sales leaders on how to ensure compensation plans align to business goals, motivate sales reps, and maintain simplicity in 2024.

View the Report
your guide to setting calculating and tracking sales compensation image
Your Guide to Setting, Calculating & Tracking Sales Compensation

Create sales compensation packages that reward over performance, drive productivity, and attract and retain talent.

Download the Guide