Newly promoted Strat & Ops Principal seeking benchmarks for sales bonus structures.

Base is $250k + 10% bonus based on total corporate performance + an as-yet-unknown sales performance bonus against a personal sales target of $5M.

What sales incentive structures have you seen out there?

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I've built a number of sales commission plans and found that a good method is to decide what you think role is worth from an OTE perspective (salary plus commission/bonus) and then back into the commission percentage from there. It definitely helps control your cost of sales a bit to tie the achievement to a set amount.

For example... If a salesperson is going to carry a 3m ACV quota, you may decide hitting the goal should pay $500k all in. If the salary is $175k then the variable becomes $325k. The commission percentage just becomes a function of whatever yields the target OTE (usually with a kicker for outperformance). I would also give some thought to the fixed/variable split... I like 40/60 or 35/65. Good enough salary to live on, but not enough where they don't feel as much motivation to sell.

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I have a similar quota and get about 5% of net profit (based on our margin target for those deals) + 150 base

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A bit more color: I'm 8yrs post-MBA. Top 10% performer as a Sr Mgr. Leading a Top 10 account. Actively setting the global strategy for my practice segment.

How much equity

OneTime $250k RSUs w. 3yr Vest Cliff + 50-100k Annual RSU allotment on performance

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