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Video: Sales Pay Structure – How much fixed, how much variable?

Sales Comp Answers, Video

(17:44) In putting together a sales pay structure, first establish the right total cash compensation for the role. Following this, the pay mix (fixed:variable ratio) and leverage (upside intentions) complete the pay structure. The considerations are…

Base Salaries for Sales – annual merit increases, or not?

Sales Comp Answers

Should we be using our standard annual merit pay adjustment process with our sales team’s base salaries, or should we just expect them to earn their own raise through increased sales?

Should sales leader comp go up with quota size?

Sales Comp Answers

We have two sales VPs with remarkably different team revenue quotas. One at $12MM/yr, the other at $20MM. To date we have targeted the same variable comp for each…

Managing base pay for sales roles

Sales Comp Answers

If you’re going to have base pay, manage it, varying base pay levels to differentiate among people based on value-creating attributes that don’t change year over year.

Why is it important to set Target Total Compensation for a role?

Sales Comp Answers

Target Total Compensation (TTC) is the amount of pay that a role (not a person) is expected to earn at 100% of expected performance. This number is absolutely essential to developing sound compensation plans. Without it you will not know who is doing better than expected and who is doing worse. Compared to what?

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