PreSales Talks: Dealing with Variable Pay

Today we had a topic that is always interesting. For people new to commissioned roles, variable pay can be very scary. For those comparing it to a sales person's compensation plan, they can feel like presales gets a rough deal.  What do you think about variable pay?

Notes from our session:

Why have variable pay? Alignment to sales.

Recognition aligned to achievement.

Range 80/20 -> 70/30

OTV = On Target Variable

OTE = On Target Earnings

BASE = what you earn before any bonus or commissions

MBO = management based objectives (more of a bonus than a commission).

Targets on team and individual

  • What is the track record on achieving the variable.
  • Hybrid targets - combining team and individual, or multiple different targets.
  • Ramping - first quarter - getting paid full variable.
  • Are finance/salesops set up to calculate individual targets for presales? It could be that your organization isn't set up to work on individual or other complex commission calculations.

Consensus Compensation Survey

• Also did a webcast around it with John Care.

What do people think about splits?

• Standard ratios

• 50/50 splits?

• Agree what kind of split it should be before closure.

Comp isn't just cash

• Extra timeoff

• Stocks

• Club trips

• Future promotion

• Call outs for presales at Sales Kickoff

Some people:

• Less about OTE and more concerned with Base.

Future topics

• Training 

• Recognition of the contribution of Presales