What is the recommended salary structure for a sales team? Specifically, what percentage of the salary should be fixed, and what percentage should be allocated for incentives? Additionally, would the incentives be paid on a monthly or quarterly basis? Furthermore, which key performance indicators (KPIs) are typically tracked for the sales team, and are there standard variable percentages associated with achieving these KPIs? Fixed + variable + incentives Do you have any tracker and document to understand sales incentives. Happy to DM

Thank you for asking a detailed question 🙏🏽🙏🏽

Sure @Abhash, will make this happen

Ratio should be 70:30 ( 70 fixed and 30 variable)

• 70:30 with minor changes for Fixed and variable • Inventive is generally separate additional achievement and plans and paid on a quarterly basis

The variable pay 30% is it if they meet expectations or exceed/far exceed expectations

so Variable pay fluctuates as per the achievement sometimes less than 100% to 100% or even more than 100% if they have over achieved and some companies do it on quarterly, half-yearly to yearly payout as well

One recommendation (from chapter 5.6 from the book Build, by Tony Fadell, "The Podfather" and founder of Nest) which might be applicable to your industry and market, is to make the variable part based on vested commissions. These vest over time, instead of being paid right after the sale. This incentivizes relationships, instead of just transactions, and prevents an emphasis on negative hyper competitivity. A few valuable links for reference: https://medium.com/luge-capital/sales-compensation-plans-in-d https://www.palettehq.com/blog/this-sales-compensation-model-is-the-key-to-unlock-product-led-growth https://www.indeed.com/career-advice/career-development/commission-structure-for-sales