This document discusses creating compensation plans, specifically for millennial sales hires. It provides examples of metrics and goals that could be used in a comp plan, such as number of appointments set and opportunities created. An effective comp plan is simple, has clear structure and goals. It also discusses how to calculate potential revenue per rep based on deal size and close rate for different customer segments. The document emphasizes that top performance results from achieving goals in multiple areas, not just one metric, and notes the importance of tracking activities in CRM.

2. Who are we creating
comp plans for
anyway?

3. Meet the
Millennials – Your
New Sales Hires

4. The Profile of a Successful BDR
or SDR Hire
0-2 Years of
Experience
Coachable
Genuine
Curiosity
Track Record
of Winning
Hungry
Eager to Make
Impact
Goals and
Results Driven
Ultimate
Stalker

5. What Millennials Need
Out of Their Comp
Plan…

6. Simplicity
Structure

7. Creating Structure
• Calls
• Emails
• Conversations
• Appointments
• Opportunities
• Closed won

8. Comp Plan Creation:
Creating a Comp
Plan that Drives
Success

9. Elements of a Comp Plan
Base: What you see in your paycheck not
including any bonuses, benefits, or perks
associated with the job.
Bonus: Additional compensation awarded to
an employee for achieving specific goals or
metrics.
Kicker: Any additional spiff or bonus outside of
a reps bonus that is tied to closed/won deals
or competition.

10. What is a bonus comprised on?
40% Appointment
60% Opportunities

11. Potential Bonus: $1K monthly pay out
Goals: 16 Appointments, 8 Opportunities
Pay out:
Appointments Set ($25 each)
Opportunities Created ($75 each)
***As always, we recommend that this number be uncapped***
Example Comp Structure

12. OTE Breakdown: Base vs. Bonus
70% Base
30% Bonus

13. Additional Kicker
10% MRR
.89% ARR

14. Tying It All Together
Designing a comp plan is like closing a deal:
– Remember your target audience
– Know what you want them to do
– Show them how to get there
– Tell them what the results are
– Be consistent in your delivery

15. John Kosturos, VP of Sales

16. The Ultimate Sales Compensation Plan
100% Data Driven

17. Cold Calling 2.0 Model
Controlling the List

18. Reports on current accounts to identify the ideal account profile
• Accounts with the largest transactions
• Accounts with the highest lifetime value
• Accounts that buy most often
• Accounts with the lowest activities from MQL to SQL
• Accounts with the least number of activities from SQL to close
• Accounts with the lowest average time from MQL to SQL
• Accounts with the lowest average time from SQL to close
• Accounts with the highest % of MQL to SQL
• Accounts with the highest % of SQL to close
Ideal Customer Profile (Accounts)

19. “75 percent of the customer information
held by most enterprises is inaccurate,
out-of-date or ineffective.” (Gartner)
• Geography
• Industry
• Employee size
• Revenue
• Investment Capital
• Free cash flow (optional)
Ideal Customer Profile (Accounts)

20. Map Your Entire Potential Dream Market!!

21. Identify Decision Makers at Target Accounts

22. Think About It for a Moment

23. • Best buyer market segments (segment top 20%)
o Industry, employees, revenue, geography, other proprietary metrics
• Average deal size per segment
• Total number of potential accounts per segment (mapping markets)
• What percentage of leads should convert to customers
• Number of activities it takes to close an account
• Goal for how long it should take for you team to work through each
market segment
B2B Sales Comp Plan Metrics

24. • 25000 potential accounts
• 3 key contacts per account (75,000 contacts)
• 8 activities per contact on avg (24 activities per account)
• 600,000 total activities to exhaust the list
• New reps can accomplish about 600 activities per week
• 600,000/600 = 1000 weeks
• If the goal of the company is to exhaust the list in 12 months, it will take
~18 sales people (1000/56 = 17.85)
Sample Target Segment Analysis

25. Top 3 best buyer segments for example company:
1. Technology companies in USA have an average deal size of $10000 and
close at about 5%. (Assuming 600 combined call/email activities
completed per rep, per week.)
2. Manufacturing companies in USA have an average deal size of $3000
and close at about 10%. (Assuming 600 call/email activities completed
per rep, per week)
3. Banks in USA have an average deal size of $20000, close at about a 4%
clip (Assuming 600 call/email activities completed per rep, per week)
Example of Compensation Calculation

26. You can calculate your annual revenue per rep with a clear understanding
of your avg deal size and close rate.
1. (5% closed) = 1250 new accounts * $10K avg deal = $12,500,000
• $694,444 revenue per rep
• $104,000 - $208,000 (comfortable salary + commission range)
2. (10% closed) = 2500 new accounts * $3K avg deal = $7,500,000
• $416,666 revenue per rep
• $62,500 - $125,000 (comfortable salary + commission range)
3. (4% closed) 1000 new accounts * $20K avg deal = $20,000,000
• $1,111,111 revenue per rep
• $166,666 - $333,333 (comfortable salary + commission range)
Example of Compensation Calculation

27. Business Data Report Card
Forecasting D
Customer Service F
Sales Efficiency C-
Productivity D-
Client Renewals D
CRM User Adoption F

28. Howard Brown
CEO, RingDNA

29. We all build comp plans to
achieve top performance

30. But top performance is actually
the sum of many parts

31. The Golden Rule:
If it’s not in CRM it doesn’t exist

32. 6 out of 10 SaaS
companies
now use SDRs to
create
opportunities
for account
executives
Source: Bridge Group, 2015

33. Two primary ways to comp SDRs
RESULTS
REVENUE
Mee,ngs,
Opportuni,es
%
of
Won
Opportuni,es

34. But putting too much emphasis on
any one area can spell trouble

35. Commonly Tracked Metrics

36. Give SDRs insight into tracking
activity volume versus goals.

37. The number of sales conversations
directly affects quota attainment
Source: Bridge Group, 2015

38. The entire team will perform at
a higher level

39. To get more wins

40. Q&A