3 tips for doing a startup sales commission right

3 tips for doing a startup sales commission right

Companies careen from ‘we are all bros & sistas’ 0% sales commission to ‘we are all buccaneers’ 50% model come back to a middle-of-the-road mix & match as they grow 100% CAGR.

Probably the biggest elephant in the room for a sales leader in a startup sales org – other than selling – is her team’s sales comp. Whatever we do – we end up getting damned & left with self-doubts. How to approach it?

#1 Horse for courses. The more uncertain a firm’s sales cycle, the more a salesperson’s pay should be based on a fixed salary. Our govt. sales guy will not join because of a low base salary & fab. comm. Our door-to-door salesperson will lose her drive if she gets a fixed sal!

#2 We shouldn’t overcomplicate it. Many reps won’t understand it & the scumbug comm hunter would still try to game it! Keep it simple & have commission without caps. Nothing motivates better than a clear line of sight into the money a rep can make.

#3 We must get ready for the falling power of an individual salesperson vs. our brand & our buyers.
Struggling with framing #sales compensation? Happy to be a fair-sounding board!