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How to Build Effective Sales Compensation Plans for Any Customer Facing Role

Sales Hacker

And of course, a strong sales comp plan needs to motivate reps to hit goals that grow the company while still maintaining a profit margin. 40,000/150 = $267/SQL. Or rather $250/SQL. As the SDR generates 12 SQLs/mo = $3,000 in commission. We look to spend $1,250 for 5 SQLs since this is what the business model is.

SQL 103
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The Definitive Guide to SaaS Sales: Models, Metrics, and More

Outreach

It is important to find the right commission structure to incentivize sales, while also maintaining a respectable profit margin for the company. How will it impact their profit margin or achieve their unique business goals? If not, it may be time to rethink your strategy to maintain a strong profit margin.