Every company pays its sales team, but not every company is getting sales compensation right… far from it, in fact. This presentation outlines key sales comp considerations, including how to leverage sales compensation to its full potential; how to design sales comp plans that attract and retain top sales talent; how to pay for actual performance; and how to evaluate your current sales compensation plans. With numerous links to resources and planning tools, this is a must-see summary for CEOs, VPs of Sales, or anyone tasked with managing and improving sales performance.

1. How to Boost Revenue
with a More Strategic
Sales Compensation Plan
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2. CEOs and company owners
are likely to answer:
Just the way
I pay my
sales team?
Five percent
times whatever
sales reps sell?
A number
times a rate?
A necessary evil.
What Is Sales Compensation?
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3. It’s the way you communicate
your strategic vision to your
sales team.
“Whether you're a CEO or a VP of Sales, the sales compensation
plan is probably the most powerful tool in your tool chest.”
Mark Roberge, HubSpot’s Chief Revenue Officer, Sales Products
The Sales Acceleration Formula Using Data, Technology and Inbound Selling to go from $0 to $100 Million
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Nope.

4. The 3 Most Impactful
Sales Performance Levers…
…are all encompassed in your
sales compensation plan*
1. Sales Strategy and Planning
2. Quota and Goal Setting
3. Sales Compensation Design
4. Deal/ Pipeline Management
5. Sales Training
* Based on a 2013 Mercer survey
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5. Sales Compensation Is Also Tied to Some
Compelling Financial Facts
14.5% of your annual revenue is spent on
sales compensation, making it your second
largest variable expense.
When plans are designed and administered
poorly (using spreadsheets), commission
calculation errors average between 3 and 8%.
Companies involved in compensation lawsuits
may be liable for up to triple damages,
attorney fees, and negative brand exposure.
Done right, sales compensation can drive a 92% overall
team attainment of quota.1
1 Sources: Sales Compensation and Performance Management, CSO, 2013; Lead-to-Win 2012, Peter Ostrow, Aberdeen Group
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6. When compensation plan
changes are proposed, sales reps
are often left wondering:
And Yet, the Connection Between
Sales Compensation and Company Goals
Isn’t Always Clear to Sales Teams
What’s being
taken away?
What do they
want me to sell
now?
Why are we
doing this?
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7. Does Your Organization Have a
Sales Compensation Problem?
Signs of a faulty sales compensation
plan design:
• Sales rep recruitment and retention issues
• Complaints from the sales department
• Revenue below plan
• Selling unprofitable products
• High expenses
• Top reps are not the highest paid
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8. Are You Paying for Performance?
Some companies are
overpaying reps who have
learned how to game the
system...
This graph illustrates sales
commissions and
attainment from an actual
company. If you look at the
100% attainment marker,
you’ll see one rep is earning
about $90K, while another
can’t reach$20K—yet both
brought in the same sales.
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9. How’s Your Quota Attainment Distribution?
A typical sales team has many reps below quota, a few reps above quota, and no one
close to actual quota. These companies will not make their sales goals for the year.
Ideally, you should have 50 to 70% of your reps at goal or above.
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10. So When Is It Time to Update
Your Plans?
• Products are different
• Territories have changed
• Go-to-market strategy has evolved
• Current market conditions are different
• Job roles becoming more specialized
• Not driving right behavior
• Target Total Compensation is not
competitive
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11. How Your Business Stage Affects Your
Sales Compensation Plan Design
Is your company
approaching a key
inflection point?
Read about
organizational changes
that demand
compensation plan
adjustments.
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12. Strategy
Aligning Compensation with Your
Company Goals
Determine the key items
you want sales to deliver
on for 2016. For example:
• Customer retention
• New products and services
• New customer acquisition
• Further penetration of market
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13. Required – quota, goal or
expectation – aligned with
strategy. Common examples:
• Revenue dollar
• Profit dollar
• New customer
• Units
Getting Your Quota Right
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Need more detailed information on how to create sales quotas?
Start here.

14. Focus
Incentives to Drive Results
The right formula
with the right
amount of incentive
helps sales reps
stay focused.
I get it, sell these!
What am I
supposed to sell
now?
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15. • Commissions vs. bonuses
• Thresholds and caps
(starting point / end point)
Want the details?
Download "How to Structure
Sales Reps Earnings to Drive
Your Business"
Formula Types and Rates
Flat
For low priorities
Stepped
For emphasis
Ramped
Progressive
For aggressive growth
Ramped
Regressive
For avoiding overselling
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16. Communicate Plan Documentation
Required in writing and signed
by each rep
• Focuses your reps’ attention
• Goals and earnings opportunity
• Policies and procedures
View a sample plan
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17. Reward Earnings and Performance
• Reports – Payout, commission details, performance
• Ranking
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18. Questions?
Contact Teanna:
teannaspence@cornerstonesoftware.com
Best Practice tools, tips, and blogs:
www.cornerstonesoftware.com
Answer 10 questions for a sales compensation
plan evaluation:
www.cornerstonesoftware.com/GradeMyPlan
Cornerstone Software, Inc. is the developer of Sales Motivator®, a web-based,
self-service software solution that lets small- and medium-sized businesses design,
administer and communicate great sales compensation plans.
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