A Sales Guy

JULY 24, 2012

Ok, I’m coming back to the quota discussion. My last post about quota focused on the importance of quota aligning with business objectives and business strategy. RULE 1: Quota MUST BE perceived as attainable. When quotas are not perceived as achievable, sales people just give up and don’t even try.

Quota 113

Quota Commission Territory Government 113

Tibor Shanto

JULY 7, 2021

It was a straight unbroken line, the quota is a number, as are ROIs, commissions, and almost everything else. This may also explain why nearly half of B2B sellers fail to deliver quota. (And It is not unusual for a rep to proudly share their conversion numbers, only to discover why they are missing quota.

Objectives and Key Results 301

Objectives and Key Results Quota Gaming Commission 301

Hubspot

MARCH 27, 2019

Motivating your sales team isn't about taking the coffee from their lips, it's about setting realistic quotas tailored to each rep, the type of product or service they're selling, and the market they're selling to. Here's everything you need to know about setting successful sales quotas. Sales Quota. Activity Quota.

Quota 100

Quota Territory Commission Sales 100

Partners in Excellence

APRIL 24, 2023

When I read my feeds or listen to a lot of “experts,” the focus is always on hitting our quotas, maxing our commissions, achieving our goals. One imagines a sword of Damocles hanging over seller’s heads with the constant threat of making quota. The post Can We Be Helpful And Still Make Our Quotas?

Quota 127

Quota Commission Pipeline Pitch 127

SaaStr

JANUARY 13, 2023

Dear SaaStr: How Do You Handle Commissions if the Customer Auto-Upgrades for More Seats? If the upsells are super easy, and the reps don’t have to do much, rather than take away the commission … think about increasing the quotas. The post Dear SaaStr: How Do You Handle Commissions if the Customer Auto-Upgrades for More Seats?

Commission 111

Commission Customers Quota Follow-up 111

Hubspot

APRIL 24, 2019

If your sales organization is struggling to strike a balance between company requirements and the compensation needs of employees, it's likely time to reevaluate your compensation plan and commission structure. Luckily, I've compiled some resources for you to determine the best sales commission structure for your sales team or yourself.

Commission 101

Commission Territory Quota Real Estate 101

SaaStr

MAY 6, 2023

Dear SaaStr: As a salesperson, if you sell a multi-year SaaS deal, does the whole amount count towards your current year quota? First, what you pay on vs. quota retirement can vary. On commissions / pay-out: For start-ups where cash matters, I strongly suggest compensating the reps mainly on cash brought in.

Quota 113

Quota Commission Sell Contract 113

Veloxy

FEBRUARY 28, 2022

While you can manually add multiple stops ahead of time using Google Maps, there are missing route planning features that are key to helping field salespeople hit quota and exceed customer expectations. That means hitting the road, accumulating miles, and chasing greater commissions. Using a Field Sales Route Planner to Crush Quota.

Territory 221

Territory Gambling Quota Commission 221

Veloxy

MAY 25, 2021

Inside and outside sales reps are not only paid on commission, hefty bonuses and kickbacks also motivate them to work even harder. When it comes to activity based rewards, your reps would definitely love to unwind after pushing hard to hit their quotas. I mean, c’mon, you’ve seen all the movies right? 7: Motivate with Office Upgrades.

Drivers/motivators 299

Drivers/motivators Extrinsic Intrinsic Non-Profits 299

SaaStr

JANUARY 18, 2021

Q: Should we deduct partner referral fees from our sales people’s commission? If I have to pay a partner say 20% of a deal, and they do a lot of the work — why do I also have to pay my own sales rep a full commission? So yes, at least for a while, with many partners you may in essence need to pay a double commission.

Commission 99

Commission Closing Referrals Quota 99

Salesforce

SEPTEMBER 28, 2023

These targets are used to guide the quota-setting, territory mapping , and sales team strategies. These include things like quota attainment for a sales team and the numbers of deals in reps’ pipelines. With sales targets in place, your team can create quotas to strive for and specific strategies for hitting those quotas.

Quota 116

Quota Territory Pipeline Sales 116

Membrain

MARCH 24, 2021

As sales professionals, it’s easy to think about our jobs in terms of numbers: Quotas, forecasts, and commissions leading the way. It’s easy to forget the human side of things, and when you operate in a complex b2b world, it’s even easier to get caught up in technical details.

Commission 164

Commission Quota B2B Sales 164

Sales Hacker

SEPTEMBER 4, 2020

That means if you’re an SDR, there’s a 52% chance you’ll hit the phones hard, send tons of emails, and not even reach 90% quota. So why is quota attainment so bad for so many SDRs? SDR performance is rewarded with commissions, trophies, accolades, and a lot of visibility inside the organization.

Quota 119

Quota Meeting Cold Call Commission 119

Sales Hacker

MARCH 10, 2021

However, if 100% of your sales reps are hitting their quota every single quarter, it may not be cause for celebration. You don’t want reps to hit 100% – aim for 60% of reps hitting quota. A healthy sales organization should aim for about 60% of reps hitting their quota. If it shoots up to 80–85%, it’s time to re-evaluate quotas.

Quota 103

Quota Territory Profit margin Growth 103

Engage Selling

MARCH 21, 2019

Financial compensation doesn’t have to be the only approach to commission. There’s another, perhaps more valuable approach which can further motivate your sales team to produce results. It’s time. Think about it. How often, in today’s world, do your sellers get real, … Read More »

Commission 86

Commission Drivers/motivators Sales Clients 86

Cerebral Selling

JUNE 28, 2022

All too often, when our quotas and commissions are on the line near the final buzzer, we psych ourselves out and think that everything a customer asks for in the heat of a negotiation is critical. The reality is, it won’t be!

Negotiate 237

Negotiate Commission Quota Price 237

SaaStr

JULY 22, 2020

Commission that is a Relatively Low % of the Dea l. Relatively High Quota. You don’t make a lot on each deal, and with a high quota, it’s a big nut to hit. If they make too much, the quota was too low. E.g., no commission at all each month/quarter until you clear a hurdle.

Commission 145

Commission Quota Inside sales Sales 145

SaaStr

SEPTEMBER 9, 2022

But the math got tougher as we moved to $400k-$600k quotas, and it got tougher again as OTE expectations went up. SaaS companies and fintechs and pseudo-SaaS companies could end up paying out more than the entire year’s margin in the commission check. Either higher quotas, lower attainment, or for a while, even more venture capital.

Commission 138

Commission Quota Sales Growth 138

Membrain

FEBRUARY 26, 2023

When you look at these things we use to describe “salesmanship,” none of it is meaningful to the buyers – the people we have to engage to meet our quotas, achieve our goals, and earn our commissions. Amazingly, the more we do this, the more easily we achieve our goals of hitting quotas, beating competition, earning our commission.

Commission 126

Commission Quota Negotiate Pitch 126

Veloxy

MARCH 16, 2022

While money shouldn’t necessarily drive your life, earning commissions and other incentives based on performance is extremely fulfilling and it helps you climb the ladder faster. However, being recognized and rewarded for achievements should be, and high commissions or a higher paying job is the primary focus for this sense of fulfillment.

Pharmaceutical 223

Pharmaceutical Commission Inside sales Sales 223

A Sales Guy

JULY 23, 2014

Some pay commission based on sales, while others only pay on margin; still others blend both with incentives and special bonus plans. Once you have determined an acceptable CoS range, you can fine-tune the commission plan. Balanced: Compensation is based on margin, revenue and a third component, such as quota attainment.

Commission 120

Commission Quota Cold Call Sales 120

SaaStr

JUNE 26, 2019

It’s simplest probably to tie the commission payments to the quotas. If reps have monthly quotas, pay them monthly. If they have quarterly quotas, pay them quarterly. you’ll end up likely with both a fair amount of complexity in sales commissions and likely quarterly quotas. View original question on quora.

Commission 66

Commission Quota Contact Sales 66

Tibor Shanto

JANUARY 25, 2022

There are several ways to slice this, but it needs to be surfaced in coaching and quota discussions more often. Those who have been commissioned on margin, generally become better sellers. The driving question being how do I take a territory from a 20% margin base, to 25%? You should be upgrading your base as often as your phone.

Commission 157

Commission Territory Negotiate Quota 157

Hubspot

OCTOBER 16, 2017

Commission only. Base plus commission. Absolute commission plan. Relative commission plan. Straight line commission plan. When to pay commission. Quota and OTE. Setting quota. Yet without commission, reps are usually less motivated to go above and beyond. Commission only.

Commission 101

Commission Quota X-functional Non-Profits 101

SaaStr

JULY 31, 2024

In the early days, when Cash is King, pay the sales reps a full commission on all cash paid up-front. This is relatively uncommon, apprarently < 10% of startups pay a 100% commission on Y2/Y3+ prepaid cash: How Much to Compensate SaaS Sales Teams for New Sales, Renewals and Expansions But at this time, cash was king.

Commission 113

Commission Contract Quota Customers 113

PandaDoc

APRIL 26, 2023

However, since sales activities have been notoriously hard to measure in terms of performance, many business owners have adopted various commission structures to keep their sales reps motivated. Properly structured commissions, that’s how! How does the commission structure work? Five typical sales commission structures 1.

Commission 52

Commission Territory Quota Drivers/motivators 52

Partners in Excellence

JANUARY 23, 2015

People on a profit sharing plan, but with no quota, not prospecting, without commissions, dedicated to the customers’ success. Then there’s that commission thing… Brian, and many like him are opposed to commission, but still revel in bonus programs. We’ve all been there, heard that, seen that.

Commission 122

Commission Profit margin Quota Sales 122

Openview

MAY 30, 2018

Commission or bonus-focused compensation plans provide tremendous upside for growth and allow CEOs to truly leverage their people — all while those people are given ample opportunity to make significantly more money than if their income was largely dictated by a fixed salary figure. Commission Capping and Payout Frequency.

Objectives and Key Results 147

Objectives and Key Results Commission Appointment Lead generation 147

SaaStr

DECEMBER 12, 2023

So quotas are relatively well understood, if sometimes complicated to get right in practice. And how many hit quota? While different data sources report different numbers, the companies themselves in the Keybanc Sapphire data report 80% hitting quota attainment. In any event, that’s good median data. 40% attainment?

Sell 133

Sell Quota Commission Contract 133

Veloxy

FEBRUARY 15, 2022

Before Covid, field sales was synonymous with hitting the road, meeting customers in person, and regularly making significant commissions. Fortune 500 and Inc 5000 companies have found continued success with new field sales strategies and technology, and a new number one key performance indicator (hint: it’s not quota). Cyber Security.

Territory 244

Territory Inside sales Outside Sales Pharmaceutical 244

SaaStr

AUGUST 10, 2021

Sales reps work on commission, and they are driven almost entirely by what they get the most commission for. If you have 40 hours a week to work, and 50%+ of your comp comes from commission … you’ll put those 40 into what you perceive to make you the most money. If for no other reason — Incentive Alignment. It’s just natural.

Commission 111

Commission Product Quota Sales 111

Veloxy

FEBRUARY 1, 2024

This guide unveils essential metrics such as lead response time, conversion rate, and quota attainment to help you understand where your team excels and where there’s room to grow. Quota Attainment Quota attainment is the ultimate measure of your sales team’s success. We will examine each of these metrics more closely.

Product 130

Product Quota Objectives and Key Results CRM 130

Salesforce

MAY 14, 2024

We’ll walk through what a change of commission letter is and when to use them. What you’ll learn: What is a change of commission letter? Learn more What is a change of commission letter? A change of commission letter is a way for companies to give sales teams written notice about pay changes.

Commission 52

Commission Quota Represent Legal 52

SaaStr

MARCH 27, 2021

The at first nonobvious thing about discounting is the dynamic: Sales reps on commission will naturally do 2 things: First, they’ll quote at list price. That’s Maximum Commission, after all. So yeah — that’s what you’d do if you were a successful, experienced rep on commission and quota.

Commission 126

Commission Price Quota Negotiate 126

Partners in Excellence

DECEMBER 30, 2021

” As sales people, we focus on our goals, quotas, and commissions. Usually, when we think about thing, we focus on our return, we answer the question, “How do we make things better for ourselves?” The customer is only a vehicle for achieving those. As leaders, too often, we focus on ourselves and our own goals.

Commission 149

Commission Quota Customers Sales 149

SaaStr

JANUARY 5, 2024

With SDRs, especially in the early days, they’re likely fresh out of school or in the early stages of their career, so you can’t point to previous work experience and ask if them they were hitting quota or top of the board. What should quota be? You want to have the right balance. So, how do you determine what to measure?

Quota 124

Quota Commission Networking Sales 124

Veloxy

NOVEMBER 29, 2021

It’s all about crushing quota! Customer Experience is now the number one key performance indicator, replacing sales quota. Your reps are the best at creating and nurturing personal relationships, so why waste their time and limit their commissions by having them perform duties best suited for a clerk or administrative assistant?

Sales 290

Sales Quota Up-sell B2B 290