Commission structure

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compensation philosophy
on the most macro level, your company’s broader philosophy around compensation trickles down to your sales comp plans.

For example, if your company has what’s commonly known as an aggressive compensation philosophy, they’re more likely to create performance-based commission plans. In other words, the “variable pay” piece of the ttc equation is where reps would be expected to earn most of their money.

as part of variable pay, your commission plan design will also chinese student data influence what ends up being a part of the ttc equation. For example, your plan might only include straightforward commission rates – where reps are paid a set percentage from the deals they close – but also include a significant bonus for reps who achieve 100% commission in a pay period. Or, you might not offer sizable bonuses, but use a tiered commission structure instead, where reps’ rates increase as they close more deals.