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Sales Compensation Plan Design: Quotas, Commission, SPIFF

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Build a sales incentive plan reps trust: OTE and pay mix, quota setting, accelerators, clawback and SDR, AE and AM plans
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Created by PapaHR ★ 170K students: Courses in Human Resources, HR, SHRM, AI Talent Analytics, HRMS, HRIS, CIPD, Claude, HRCI, PHR, Rewards
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What you'll learn

  • Set a sales quota three ways (top-down, bottom-up and by capacity) so that 60–70% of your reps hit it, and check it against OTE
  • Calculate the base commission rate from OTE and quota, add accelerators, a threshold and a decelerator, and see payouts from 50% to 150% of quota
  • Split every sales role’s pay into base salary and variable pay: OTE, pay mix by role and deal cycle, and no more than three plan components
  • Design sales compensation plans for SDR, account executive, account manager, CSM and sales manager with the right components, weights and rates
  • Write a sales comp plan document in 10 sections with the commission earning event, clawback, windfall, territory change and a payout dispute procedure
  • Launch a 6-week SPIFF for one behaviour, set MBO and team bonuses and keep the whole bonus budget inside OTE
  • Roll out a new commission plan in 4 weeks and handle the hard talks: presenting it to the team, keeping a top rep, settling a payout dispute
  • Review the plan each quarter by six numbers, from share of reps at quota to compensation cost of sales, and once a year by a 10-point checklist
  • Learn with Mike Pritula, the #1 HR instructor on Udemy, alongside 2,000,000+ of his Udemy students
  • Learn from 20 years of hands-on HR practice at Wargaming, Preply, iDeals and Alfa-Bank
This course includes:
5.5 total hours on-demand video
0 articles
0 downloadable resources
8 lessons
Full lifetime access
Access on mobile and TV
Certificate of completion
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Course content

Requirements

  • Some experience running, supporting or paying a sales team: as a sales leader, RevOps, HR or finance
  • Basic Excel or Google Sheets skills to repeat the calculations on your own numbers
  • Your company’s sales figures help: revenue goal, headcount by role, current OTE and quotas
  • No prior training in compensation or incentive design is needed

Description

This course contains the use of artificial intelligence

Only 43% of SaaS reps hit quota, according to RepVue. Below 50%, the problem is the plan, not the people.

In 8 lessons you rebuild your sales compensation plan: quotas 60–70% of reps can hit, commission rates with accelerators, clear rules and a plan document reps sign.

Most sales teams get their pay plan the same way. Someone takes last year’s spreadsheet, raises the quota by 30%, adds another component the CEO asked for, and sends it out a week into the quarter. Then the questions start. Reps argue about every payout because nobody wrote down when a commission is earned. A windfall deal pays one person more than the whole team, or gets cut after the fact. Strong reps leave, because they cannot work out what they will earn. And the plan gets rewritten again next quarter, by feel.

After this course you set the numbers yourself and can show how you got every one. You split each role’s pay into base and variable, set a quota three ways and check it against OTE, calculate the commission rate and see what a rep earns at 50%, 100% and 150% of quota before the plan goes out. You build separate plans for SDRs, account executives, account managers, CSMs and sales managers. You put the rules on paper: earning event, clawback, windfall, territory change and disputes. Then you launch the plan with the team and check every quarter whether it works.

The course is built and taught by Mike Pritula:

  • 20 years in HR at Wargaming, Preply, iDeals, Starlightmedia, Alfa-Bank and PeopleForce
  • Saw sales pay from the inside: at Alfa-Bank credit experts could not explain why one month paid more than another, and at iDeals the plan moved from a flat percentage to pay for new clients and upsell
  • PHRi, SHRM-CP and HCI sHRBP certified, HRCI representative in Eastern Europe
  • #1 HR instructor on Udemy, with 2,000,000+ students on Udemy; founder of Pritula Academy, where 170,000+ students have trained

First you learn the math of a plan: OTE and pay mix, quota setting and commission rates with accelerators, thresholds and caps. Then you build the system around it: SPIFFs, MBOs and team bonuses, plans for five sales roles and a plan document with the rules that stop most payout disputes. Finally you launch the plan with scripts for the hard conversations and learn the six numbers that tell you each quarter whether the plan works.

Every lesson runs on real numbers in $: a $790,000 quota, a $190,000 OTE, a payout at 120% of quota calculated line by line. Market benchmarks come as ranges from sources such as RepVue, Bridge Group and Alexander Group, so you can compare your plan with the market, not with last year’s version of itself. Every lesson ends with a homework assignment on your own company, so by the end you have a plan you can put in front of your reps and your CFO.

What’s included:

  • Lifetime access to all materials
  • Active instructor support in Q&A
  • Udemy Certificate of Completion
  • A practical assignment on your own company in every lesson
  • 8 video lessons, about 5.5 hours in total
  • The slides of every lesson as a PDF, with formulas, benchmarks, calculation examples, templates on the slides and scripts
  • A section with additional courses, tools and resources

Every quarter you run on a plan you cannot defend costs you margin, disputes and your best reps. Your competitors hire those reps with a plan they understand. The sooner you fix the math, the sooner the next quarter starts on a plan that works.

Enroll now and start your first lesson today.

Who this course is for:

  • Heads of Sales and sales managers who set quotas and commission rates for a team of 5 to 50 reps
  • RevOps and Sales Ops managers who own the comp plan, the payout calculations and the disputes
  • HR, compensation and benefits specialists and HR business partners who support the sales department
  • Founders and CEOs of growing B2B companies who rewrite the sales plan every quarter and lose strong reps over it
  • Finance managers who approve the sales compensation budget and want to check the plan’s math
  • Account executives and team leads moving into sales leadership who will soon design plans for others
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