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Comp plan. Stress-tested.
OTE, mix, quota, ramp and total cost of sales. See if the plan works before you launch it.
Per rep inputs
Results
Quota multiplier
6×
target 4–6×
Expected take-home
$138,000
per rep
Total loaded cost
$1,035,000
all reps, all-in
Cost of sales
24%
of expected revenue
Benchmark
Healthy plan
Quota multiplier 6× and cost-of-sales 24% sit in the healthy band.
How it works.
Quota multipliers below 4× mean the company can't afford the plan. Above 6× means quotas are punitive and reps churn. Cost-of-sales above 35% is a board-deck red flag.
FAQ.
What is a sales compensation plan?+
The structure that defines what reps earn: base salary, variable (commission + bonus), accelerators, SPIFFs, and any clawbacks. Good plans align rep behaviour with company goals; bad plans optimize for the wrong thing.
What's a typical AE pay mix?+
60/40 (60% base, 40% variable) is most common for B2B SaaS AEs. SDRs trend 70/30. CSMs 80/20. Enterprise reps with longer cycles often go 50/50 with bigger accelerators.
What's a quota multiplier?+
Quota ÷ OTE. Healthy range: 4–6×. A $150K OTE rep should carry $600K–$900K quota. Below 4× the unit economics break; above 6× attainment collapses.
Should I cap commission?+
No. Caps kill the top 20% of reps — exactly the people you want to keep selling. If a deal is so large that uncapped commission feels uncomfortable, the issue is plan design, not the deal.
How long should a comp plan run?+
12 months minimum. Mid-year changes erode trust faster than any other RevOps action. Lock the plan; let the data speak; redesign at planning season.