Do you cap commissions for your top performing sales people so that there's a more equitable rewards distribution across the team? How does your company think about this?
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VP of Corporate Development10 months ago
We do not cap commissions. We do, however, limit the number of customers an individual salesperson has, but we are pretty generous with that number. We want to encourage our sales people to recognize and appreciate the ability to maximize the companies performance by maximizing their performance.Vice President, Global Sales Operations10 months ago
We try to avoid caps whenever possible. We will put in decelerators at a certain point over plan to account for bluebird events or runaway success scenarios. The only time we'll utilize caps is if it's a category of new business that is less predictable period to period or sometimes we'll use caps with temporary sales incentives that are 90d focus areas. VP of Product Management10 months ago
We believe in that approach as a good and healthy compensation strategy. Especially because sales more than ever is a team effort and if all the monetary reward falls into primarily one person, it's not a healthy co-worker environment long term. IT hurts the understanding of fairness in the organisation.CEO in Services (non-Government)10 months ago
No. If territories and opportunity is normalized, then pay for performance. CSO10 months ago
I find capping commissions to be a de-motivator. That said, you may have to have a plan for how you might handle a bluebird account. One time in my career, we had one salesperson who was getting compensated at their normal rate on a significant bluebird account. The reality was there were a lot of people who were now involved in supporting the account, and we had to have a discussion about the commission on that particular account. The account owner was surprised the conversation hadn't happened earlier.