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Comp Plans

Definition

Compensation plans that define how sales professionals are paid, typically combining a base salary with variable pay tied to quota attainment and deal metrics.

Well-designed comp plans align individual rep behavior with company revenue goals. They specify on-target earnings (OTE), quota, commission rates, accelerators for exceeding quota, and any kickers or SPIFFs for strategic priorities. Common structures include straight-line commission, tiered rates, and multi-measure plans. Comp plan design significantly impacts rep motivation, retention, and the types of deals teams prioritize.

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FAQ

What does Comp Plans mean?

Well-designed comp plans align individual rep behavior with company revenue goals. They specify on-target earnings (OTE), quota, commission rates, accelerators for exceeding quota, and any kickers or SPIFFs for strategic priorities. Common structures include straight-line commission, tiered rates, and multi-measure plans. Comp plan design significantly impacts rep motivation, retention, and the types of deals teams prioritize.

What are the best Comp Plans tools?

Top tools related to Comp Plans: HubSpot, Salesforce, Pipedrive, Attio, Folk.