A year ago I published a step-by-step guide for how to build a realistic sales comp plan, covering the inputs into a comp plan, how to use them to calculate an attainable quota and financially sensible base and commission and how to factor in your own market realities.
I’ve now turned my guide into a calculator that you can use to build the comp plan for your team as well as evaluate how far from reality realistic your current comp plan is. The calculator is a google sheet where you enter your inputs and get back a recommended annual quota, base salary and target commission, together with monthly KPIs for sales sales calls, deals, wins and booked revenue.
Here’s a screenshot of the calculator:
It comes pre-filled with values for each input, all of which you can edit to align with the realities of your business.
You can easily see the revenue impact of increasing your win rate or ACV, of reducing the time spent in internal meetings and of minimizing the time spent on each sales call including preparing beforehand and following up afterwards.
You can also see how spending time on prospecting affects the number of deals you can manage and see how many sales calls and deals you’ll need to have in order to hit your targets.
Paid subscribers of The Revenue Architect can access the calculator at the link below. Simply make your own copy of the google sheet to start using it.