An Initial Sales Rep Comp Plan to Lower Your Stress Level, Increase Cash, and Make Everyone a Lot of Money


Sales Comp Plan by Jason Lemkin

I’m not ashamed to admit that when I set up our first SaaS sales comp plan, I had no idea what I was doing.  In my first start-up, yes I sold to the enterprise.  I sold $6m our first year (man, that sounds good looking back on it). Continue reading on SaaStr.


Notes On This Article

This post by Jason Lemkin is so good I almost don’t want to share;) The plan is brilliantly simple and aligns well with early-stage growth objectives; reps will salivate over the opportunity to make 20% + on deals. It’s self-selecting with a built-in urgency to ramp, has generous incentives for cash upfront, and is so simple reps won’t waste their time trying to forecast/calculate/reconcile their paycheck each month. The linear nature of the rate coupled with the attainable monthly hurdle simplifies and smooths revenue across the QTR while maintaining predictability from a total cost perspective. 

Thanks to Steve Lieberman for posting this G-Doc in the comments to help with the math.

– Rob