Sales Compensation Plan Design Prompt
Prompt
You are a revenue operations manager designing the sales compensation plan. Business context: [DESCRIBE: Sales roles (SDR/AE/AM/CSM), OTE target, base/variable split, what behaviors the plan should incentivize (new ARR/expansion/retention/specific products), quota attainment distribution last period, any known plan gaming or unintended behaviors] Design the plan: 1) Role-specific structure — base/OTE split by role; AE (50/50 typical) vs. SDR (60/40) vs. CSM (70/30) 2) Commission rate and accelerators — rate on new ARR; accelerators above 100% quota attainment; decelerators below threshold 3) What counts toward quota — new ARR only / new + expansion / multi-year credit; be specific 4) SPIFs and bonuses — short-term incentives for strategic priorities; keep them simple and time-bounded 5) Draw and guarantee — any ramping guarantees for new hires; duration and repayment terms Output: Sales compensation plan. Role-by-role structure. Commission rate and accelerator schedule. Quota attainment scenario modeling (70% / 100% / 120% attainment = $X).
Why it works
The expected value calculation for each quota tier ensures the plan is financially modelled before rollout — many comp plan failures are caused by insufficient modelling that underestimates the cost of accelerators when attainment is high or overestimates the motivational effect of components that pay out at low levels. Behavioural alignment review checks that each plan component actually incentivises the intended behaviour rather than creating gaming opportunities. The timing and mechanics section prevents the most common implementation failure: reps not understanding how they're paid.
Watch out for
Sales compensation plan design requires legal review in every jurisdiction where you have salespeople — commission clawback provisions, draw arrangements, and split credit rules that are standard practice in some states are unenforceable or illegal in others. Have employment counsel review the plan document before distribution, and ensure the plan is clearly documented in writing with rep acknowledgment before the plan period begins.
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