126: The 5 myths of building comp plans with Spiff’s Jeron Paul

On this edition of The Predictable Revenue Podcast, co-host Collin Stewart welcomes Jeron Paul, Founder and CEO of Spiff.com. 

Jeron is a veteran and accomplished entrepreneur: he’s a four-time founder (with three exits), a board member, and former VC. 

Throughout the pod, Collin and Jeron discuss the often-repeated, but not always true, myths around building comp plans. Highlights include: why are compensation plans critical? (5:50), myth 1 – commissions don’t matter much (15:53), myth 2 – straight line commission are better than complex commissions (27:04), myths 3 and 4 – quota bonuses aren’t always effective and accelerators aren’t worth the complexity (39:29), and myth 5 – more frequent or less frequent bonuses...which is more effective? (51:39).

Shownotes:

https://hbr.org/2015/04/how-to-really-motivate-salespeople

https://hbswk.hbs.edu/item/do-bonuses-enhance-sales-productivity-a-dynamic-structural-analysis-of-bonus-based-compensation-plans

https://hbr.org/webinar/2018/02/rethinking-sales-compensation

https://www.hbs.edu/faculty/Publication%20Files/12-055_13c23c02-e57f-4aea-9630-316aa4b772ce.pdf

https://www.hbs.edu/faculty/Publication%20Files/13-073_cbb24c28-9e84-47d9-8a32-f01b73cfda13.pdf