Building Comp Plans - 227
In this episode, Mike and Jody answer a listener question about building comp plans. Listen in to know what you should consider when building a comp plan and what you want to avoid.
Questions Answered:
- What should I consider when developing a comp plan?
- What are common mistakes people make when doing a comp plan?
Key Takeaways:
- Know what you are trying to accomplish
- Know what modeling you are comfortable using when thinking about the over-arching cost of sale.
- Know how much risk you are willing to take on in instances where someone exceeds the plan by a significant number.
- Mistakes Made:
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- Going back and implementing what you did last year
- Applying the same concepts to next year
- Trying to make the comp plan the same for everybody across the team
- Comp based on validated opportunities
- Test your modeling to see where it breaks down
- Be direct and deliberate with all the stakeholders within the business
- Adjust for whatever variables you can isolate for
- Work to simplify as much as you can
- 3 distinct groups - 1st 50%, next 25%, last 25% to get to 100% on the variable side
Have a question you would like us to answer in a future episode? Contact us:
[email protected] - list "Listener Question" in the subject line
Work With Catalyst Sale:
- Listen to our free resource (this podcast) and then put the action items into practice. Share your work with us via Twitter or [email protected]
- Invest in a Catalyst Sale course - self directed. Find our courses here
- Hire us as a consultant/advisor within your team or organization
Thank You
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