Keep Compensation Stupid Simple

[rifat28dddd]

More importantly, two samples provide a performance benchmark against which to measure.

Comparing your sales performance with your sales reps is a terrible benchmark. Why? You have advantages that reps don’t have, based on your title and that perception in the market—which has nothing to do with your ability. So, by hiring two salespeople, you create a reasonable, accurate foundation for comparison.

And don’t make it a “kill one another, last person standing wins” situation. If you go two for two, great! Set minimum expectations when they start—and see what happens.

5. I’m not a fan of wildly optimistic and south korea telegram data unproven compensation structures. Pay your salespeople a base. That base should be enough to cover rent, feed their children—and whatever else, so they can come to work and not have to worry about basic necessities.

Startup sales is inherently volatile. Your product will pivot, and so will your sales approaches. You need that flexibility early on. So, it’s only fair that your team is compensated accordingly with a high percentage in the base, having set clear performance expectations.

The other part of their compensation—about 20 percent—should be the optimistic part.

Set above-and-beyond expectations and reassess those standards quarterly. Why? Your activity and results will be far different in six months than they are now.

At Close, we’ve had the same basic comp structure for our account executives for three years. We’re a mature business, and a lot of our mechanics are predictable. But still, it resets quarterly.