After 400-plus compensation consultation calls, we understand the market’s need for more accessible and customizable compensation planning tools and models.
That’s why we launched Compensation Hub, with 15 of the most frequently used sales plans to allow you to discover, compare, customize, and share.
Wondering what the best compensation plan will be to hit your 2023 targets? Trying to model out a plan for your new SDR team? If you have questions about the best compensation plan to meet your evolving business goals, uncover the right solution using Compensation Hub.
“Designing the perfect deal and aligning compensation to that perfect deal can be tricky,” said Pavilion Founder and CEO Sam Jacobs. “When it comes to the startup industry, the market makes it hard. People pay unsustainable rates ignoring the true economics of the business and acting like they have zero churn.”
With Compensation Hub, avoid these pitfalls by customizing and sharing your plans across Sales, RevOps, and Finance leadership.
“If you can find a plan you like, then you can quickly goal search it to your business economics,” said Kevin McKeown, CRO at Beekeeper. “It’s very cool.”
No more guessing what plan might work.
Instead, use Compensation Hub to run scenarios based on historical or projected data and tailor a plan accordingly. Remove the uncertainties and drive efficiency across the organization to attract and retain talent. Incentivize outputs that spread alignment throughout your business.
And, most importantly, build trust and transparency across your organization.
How Compensation Hub works
Staying true to QuotaPath, Compensation Hub’s functionality kicks off with the sales reps in mind. When using the modeler, start with your rep’s OTE, then adjust your plan’s key variables to achieve that desired number.
For example, if you set your OTE to $180K, and your team follows a quarterly quota frequency with an ACV of $30K, your reps should average 5.8 deals per quarter in order to hit their target. That’s according to Compensation Hub.
After setting variables that get your plan in a good spot, Compensation Hub suggests rules tied to commission and bonus rates.
For instance, an Account Executive Commission Plan with Accelerators shows a plan featuring a two-tiered commission structure. This includes a 10% rate on all deals won between 0 and 100% attainment. Then a 15% commission rate applies to all deals after hitting quota.
To estimate how much a rep earns overtime under the given earnings rules, check out the Growth Curve in the top right corner. Get Sales, RevOps, and Finance all on the same page regarding reps’ earning potential under a given plan.
“One of QuotaPath’s core missions is to create alignment and clarity throughout the entire compensation process and across all departments. This starts with the very first conversations around compensation for a given role,” said QuotaPath Co-Founder and Head of Product Cole Evetts.
FAQs
When should I use Compensation Hub?
Anytime you:
- Question the effectiveness of your existing compensation plans
- Want to run different variable scenarios
- Need a new comp plan (new team, territory, product, segment, etc)
What plan should I start with?
Our favorite answer to this question is “it depends,” which certainly is not the answer you seek.
But, if you’re building out the first-ever comp plan at your organization, start simple. The Single Rate Commission is a fan-favorite of Women in Sales Leader Lori Richardson, for instance. Or, if you’re looking to push and reward reps for surpassing quota, see Commission Plan with Accelerators.
A more complex plan might be in your wheelhouse for sales teams looking to change certain selling behaviors based on historical performance and new business targets. Consider the Single Rate Commission with Contract Term Multiplier if your goal involves securing longer-year contracts.
