Plan options
Every way to set quotas and pay, side by side.
Each option fits some teams and has a weak spot. The trick is a plan your reps respect and that still pushes them to sell. In your sessions you test these on your own numbers.
Quotas
Ways to set quotas.
Swipe the table to see every column →
| Option | What it is | Works when | Backfires when | How reps take it |
|---|---|---|---|---|
| Same quota for everyone | Every rep gets the same number. | Territories and lead flow are about equal. | The big territory wins every year, whoever works harder. | Respected only when the field is level. |
| Last year plus a percentage | Last year’s sales, plus a growth rate. | Last year was a normal year and territories are balanced. | Your best rep gets the biggest jump, and reps learn to hold deals back. | Top reps resent it fast. |
| Territory potential | Quota follows the good-fit accounts in each territory. | Territories differ and history is thin. | The account list is out of date. | Respected when reps can see the account counts. |
| A blend of last year and potential | Part history, part territory. | Reps have two years of results in the same seat. | One odd year counts too much. | Usually seen as the most equitable. |
| Named accounts | Quota built account by account. | A few big accounts bring in most of the business. | It takes the most work to set, and to keep current. | Respected when reps help build it. |
| Ramp quota for new reps | A lower quota for a new rep’s first months. | You hire during the year. | Too long, or no ramp at all. | New reps stay; veterans want it short. |
| Renewals in or out of quota | Whether renewals count toward the number. | Out: reps don’t really decide renewals. In: they do the renewing. | In, when renewals are most of the book: the quota stops showing who sells. | Fine either way if it’s explained before the year. |
Pay
Ways to pay.
| Option | What it is | Works when | Backfires when | How reps take it |
|---|---|---|---|---|
| Pay mix (base vs. commission) | How much of target pay depends on results. | Reps control whether deals close. | Too much at risk for a long sales cycle; too little and commission stops paying for selling. | Respected when the at-risk part is reachable. |
| One rate for everyone | The same percent on every dollar. | Quotas are about equal. | Quotas differ: the bigger quota earns more for the same 100%. | Feels simple until reps compare checks. |
| A rate set from each quota | Target commission ÷ quota, so 100% pays the same. | Quotas differ by territory. | The quotas are wrong: then the mistakes get paid. | The clearest form of same job, same pay. |
| Rates by lead source or deal type | A lower rate on handed-in leads or upsells. | Leads land unevenly and can’t be routed evenly yet. | Reps argue over who sourced the deal. | Accepted when the rule is written down. |
| Threshold | No commission until a set percent of quota. | Base pay is high, or easy deals shouldn’t pay. | Set too high, a rep gives up on a bad quarter. | Resented when it’s set high. |
| Accelerator above 100% | A higher rate after quota. | Quotas are sound. | Quotas are too low: it overpays. | Top reps love it. |
| Cap | Pay stops at a set amount. | Short term, while you don’t trust the quotas yet. | Your best reps stop selling or hold deals for next year. | Strongly resented. |
| Big-deal review | A rule, set in advance, for one very large deal. | The plan has no cap. | It’s applied after the fact. | Accepted when it’s written before the year. |
| Renewal pay | Pay renewals less, move it into base, or give renewals to a renewals team. | Reps don’t really decide renewals. | It’s cut with no warning. | Resented when it feels like a surprise pay cut. |
| Short bonuses (SPIFs) | A short contest for one product or goal. | You need one push for a short time. | Run all the time, they become expected pay. | Liked, then expected. |
| Clawbacks | Quota credit taken back if the customer cancels early. Safest: credit, not wages already paid. | Early cancellations are a real problem. | A long window feels like taking back pay. | Accepted when the window is short. |
| Moving to the new plan | Phase in losses, keep reps whole for a while, or switch now. | Some reps earn less under the new plan. | An open-ended guarantee. | Keeps good reps through the change. |
A menu, not advice for your company. Have your HR lead or employment attorney review any pay change before you announce it.
Pick the ones that fit, on your own numbers.
Two working sessions on Zoom. A plan ready for approval, or your session fee back.