Earlier quoted context omitted.
You know what else is a cost center? Engineering. It's perceived as a massive step up from Call Center or Customer Support or QA but it's just marginally closer to revenue generation than the sales reps and can suffer many the same issues. At a previous company I managed to end up doing my software development work under a Sales title, so I could get the quota and commissions that would come with it. All of a sudden…
> a low-base / high-commission model is proven to attract and incentivize talented reps and drive out the low performers I'm interested in hearing how this is proven. I've seen incentivized sales reps close deals that damaged the company, just like I've seen "successful" marketing campaigns that eventually killed their products. If you use bookings as your metric for bonuses and then turn around and use bookings to m…
Your variable comp model can't be just a straight % commission, or else your sales reps will go chase enormous contracts that may be bad for your company. If you want to target smaller deals, weight their comp more on number of deals closed. There are hundreds of metrics you can use to judge your sales staff, and getting it right is hard. Your sales strategy needs to be driven by your business strategy, which should decided upon at the highest levels of the organization.
There is an art to creating variable comp models. You need your metrics to line up with your strategy. A star will deliver the numbers no matter what they are; while a low performer won't. The model is proven, but the details are up to every company.