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Quota bonus
How do we keep high earners motivated when their goals keep going up each quarter/year?
The problem occurs when stellar performance this year results in a very high quota next year (calculated as a percent increase over this year’s results), and so a significant risk that the new higher quota will not be attained next year.
What kind of plan is best when there is a lot of account movement between reps
A lot of account movement between reps may point to opportunities to improve sales effectiveness that have nothing to do with compensation design, like…
What is the difference between a commission and a bonus?
The difference is that the “commission” is communicated as a “piece of the action” (e.g., 2% of revenue, $5 per unit, 6% of margin dollars); whereas a “bonus” is a fixed incentive amount offered for achieving a specific objective, often with less offered for lower achievement levels and more for higher levels.