Sample sales bonus programs

These sales incentive templates will give you a good foundation to set each role on your team up for success. You can learn more about tailoring incentives to specific sales roles in our Complete Guide to Sales Team Compensation.

The most vital part of successful incentive compensation planning is basing your decisions on factual data. While it might point you in the right direction, it can also be clouded with intuition bias.

This approach is grounded in your past experience, and no matter how much expertise you have, that experience is limited. That leaves you stagnant when unexpected disruptions hit, and it creates a gaping margin for error. You can then take that data and use an intelligent Incentive Compensation Management ICM solution like Xactly Incent to better understand the effectiveness of your compensation plans, make real-time adjustments, and easily find new ways to improve existing incentive plans.

That way, you can trust you have the best compensation plans in place at all times to motivate reps and keep you on track to reach your goals. How are today's companies using technology to adapt and respond with agility to disruptions? Download the survey to find out. Skip to main content. Creating incentive compensation plans can be challenging. Learn how to build strong sales incentive plans with these easy-to-use compensation templates.

Get the Guide. Get the Full Report. Related Resources View All Resources. However, he noticed some problems including:. As a result, revenue per lead fell dramatically. He was able to devise a new comp plan with the goals of maximize revenue per lead, maintaining simplicity and retaining A-players. Here is what his new inside sales compensation plan for SaaS reps looked like:.

Lemkin was able to use this plan to reward his top reps and turn sales into a revenue center laggard reps were no longer eating up sales resources. The real beauty of his plan is that new reps became highly motivated to perform at peak performance, since they saw those top performing reps driving in with M6 convertibles. And mediocre reps would end up simply leaving the organization.

For more ways to structure sales compensation plans that help reps win, check out our eBook! Sales Compensation Balance of Base vs. Bonus Comp plans need the right weight of base vs. The Rising Cost of Hiring Reps Good sales reps are in high demand, and companies looking to hire them face a lot of competition, especially for reps with track records of success.

Keep Compensation Simple for Development Reps In order to keep comp plans simple for reps that are starting in sales, we recommended separating comp plans into three sections: Base : The regular amount that reps see in their paychecks that is unaffected by performance Bonus : The additional amount reps receive based on meeting various goals.

Kicker : Any additional bonus that is tied to closed won deals or competition Sales Compensation Base Vs. Inbound Sales Rep Compensation Plan Example Inbound reps sometimes known as lead qualification reps or marketing qualification reps are tasked with following up with leads that call as well as leads that fill out contact forms or download content. Sales Compensation Base Vs. Bonus Like most sales comp plans, compensation plans for inbound sales reps should be comprised of a base and a bonus.

How to Calculate the Bonus Where inbound sales rep compensation plans differ from comp plans for outbound SDRs is how bonuses should be structured. Bonus Threshold A bonus threshold is a good way to simultaneously motivate reps and cover costs for your company.

Never Put a Cap on Commission One of the most important things about AE comp plans is to never put a cap on commission.

However, he noticed some problems including: Not enough incentives to stay i. Instead they were leaving the moment the contract was signed. Here is what his new inside sales compensation plan for SaaS reps looked like: Competitive Base Salary — However, reps are required to cover their entire base salary including benefits before they are paid any bonus.

Double Bonus- After covering base salary and benefits, reps then make 2x as much in Commission. This inspires reps to really take care of the customers and ensure that they receive fantastic experiences. Categories: Inside Sales. So, are sales bonuses the key to recruiting top sales reps to your company? How should you reward your best-performing employees for landing major clients? The answer is not always simple — should you offer bonuses or commission?

Does a fixed salary or variable compensation make the most sense for your team? A sales bonus is a monetary incentive received when a salesperson meets or exceeds a pre-defined goal. Sales bonuses might be expressed as a percentage of a cumulative revenue milestone — that is, a dollar amount awarded once a sales rep brings in a certain amount of revenue for a particular period. Bonuses can also be structured around achievements not directly linked to revenue.

For example, bonuses may be awarded based on how many units are sold, the number of new contracts signed, or how quickly new customers are moved through the sales cycle. A good use cases for sales bonuses is in a company experiencing relatively slow growth. Bonuses can encourage reps to sell more and hopefully spur growth, but without requiring the company to pay more until it can afford to.

Sales bonuses are also a useful tool if success is defined by factors other than revenue — such as reducing customer churn rate , increasing customer satisfaction, and improving your net promoter score. For example, in some organizations, sales reps do much more than close new deals and onboard new clients.

If the business wants to emphasize the importance of sustaining revenue from existing customers, there might be a bonus for increasing customer lifetime value by a certain length. Unlike sales bonuses, commissions are always calculated based on a percentage of the overall sale value — whether in volume of units sold or revenue brought in. Commission-based compensation structures are good in cases where reps are expected to bring in new business rather than maintain existing accounts.

The more they sell, the more they make.