Compensation Plans That Actually Motivate B2B Sales Teams

Common Mistakes

• Too much base, too little variable: No urgency to close
• Commission on revenue only: Encourages discounting
• No accelerators: Top performers leave for better plans
• Quarterly targets only: Creates end-of-quarter scrambles

The Balanced Plan

Structure

• 60% base / 40% variable (OTE of £80-120K for UK market)
• Commission on gross margin, not revenue
• Monthly targets with quarterly accelerators
• Clawback on churned clients (within 90 days)

Accelerators

• 100-120% of target: 1.5× commission rate
• 120%+: 2× commission rate
• Presidents Club for top performers

Non-Cash Incentives

• Flexible working for consistent performers
• Conference attendance and training budget
• Career path clarity (IC track and management track)

The best comp plan is one where reps can do the math in their head.