Building Comp Plans - 227

In this episode, Mike and Jody answer a listener question about building comp plans. Listen in to know what you should consider when building a comp plan and what you want to avoid.

Questions Answered:

• What should I consider when developing a comp plan?
• What are common mistakes people make when doing a comp plan?

Key Takeaways:

• Know what you are trying to accomplish
• Know what modeling you are comfortable using when thinking about the over-arching cost of sale.
• Know how much risk you are willing to take on in instances where someone exceeds the plan by a significant number.
• Mistakes Made:
• • Going back and implementing what you did last year
  • Applying the same concepts to next year
  • Trying to make the comp plan the same for everybody across the team
  • Comp based on validated opportunities
• Test your modeling to see where it breaks down
• Be direct and deliberate with all the stakeholders within the business
• Adjust for whatever variables you can isolate for
• Work to simplify as much as you can
• 3 distinct groups - 1st 50%, next 25%, last 25% to get to 100% on the variable side

Have a question you would like us to answer in a future episode? Contact us:

• [email protected] - list "Listener Question" in the subject line
• www.catalystsale.com
• twitter

Work With Catalyst Sale:

• Listen to our free resource (this podcast) and then put the action items into practice. Share your work with us via Twitter or [email protected]
• Invest in a Catalyst Sale course - self directed. Find our courses here 
• Hire us as a consultant/advisor within your team or organization 

Please send listener questions and feedback to [email protected] or contact us directly on twitter, facebook or LinkedIn.

This podcast is brought to you by Catalyst Sale - you can learn more about Catalyst Sale, and the products and services we provide via the following links.

The GAME Plan - a Catalyst Sale course

Product Market Fit