Mostly Growth

The Anatomy of a Great Sales Comp Plan


Listen Later

In this episode of Mostly Growth, the number one podcast for product monetization, CJ Gustafson and Kyle Poyar dig into what actually makes a sales comp plan effective—and why so many go wrong. They break down OTE, quotas, accelerators, spiffs, ramps, and usage-based models, plus how incentives shape behavior across sales and customer success. The conversation covers margin-based comp, AI’s impact on forecasting, common gaming pitfalls, and practical rules for building simple, aligned plans that drive growth without breaking trust.

SPONSORS:

RightRev is an automated revenue recognition platform built for modern pricing models like usage-based pricing, bundles, and mid-cycle upgrades. RightRev lets companies scale monetization without slowing down close or compliance. For RevRec that keeps growth moving, visit https://www.rightrev.com

Tropic is an intelligent spend management solution that consolidates your spend data and processes into one unified offering, enabling insights and decisive action. From spotting hidden optimization opportunities to automating painful procurement workflows and giving you the best market data to turn vendor negotiations in your favor, Tropic combines smart insights with real human expertise to keep you ahead of the curve. Visit https://www.tropicapp.io/mostlymetrics to learn how.

HockeyStack is an AI platform for modern go-to-market teams that unifies sales, marketing, and customer data into a single system of action. With AI agents that prospect accounts, support reps, improve forecasting, and automate what’s already working, HockeyStack helps teams move faster without guessing. Trusted by companies like RingCentral, Outreach, ActiveCampaign, and Fortune 100 teams—learn more at https://www.hockeystack.com

LINKS: 

Mostly Metrics: https://www.mostlymetrics.com

CJ on LinkedIn: https://www.linkedin.com/in/cj-gustafson-13140948/

Growth Unhinged: https://www.growthunhinged.com/

Kyle on LinkedIn: https://www.linkedin.com/in/kyle-poyar/

Slacker Stuff: https://www.slackerstuff.com/

Ben on LinkedIn: https://www.linkedin.com/in/slackerstuff/

https://www.youtube.com/c/Vinwiki

https://www.lookingforleverage.com/p/the-characteristics-of-a-great-sales-comp-plan

RELATED EPISODES:

Pricing in the Real World: Babies, Bots, and Billing

https://youtu.be/T1cjFSZR0k0

The End of LTV to CAC: Rethinking SaaS Metrics for AI

https://youtu.be/vh3AGdqlSxU

Cowboy Forecasting: The Power of Fast Informed Estimates on the Back of an Envelope

https://youtu.be/BgO3oDiE8wE

Driving revenue without selling | Greg Henry of 1Password

https://youtu.be/f5FsNoG8A3E

TIMESTAMPS:

00:00:00 Preview and Intro

00:01:07 Sponsors — RightRev | Tropic | HockeyStack

00:05:11 Commission Economics and Why Incentives Matter

00:06:13 How Exotic Car Salespeople Get Paid

00:07:36 Comping Sales Teams on Margin vs Revenue

00:09:43 Rapid-Fire Breakdown of Sales Comp Terms

00:12:49 Presidents Club Stories and Sales Motivation

00:13:38 What Makes a Great (or Terrible) Sales Comp Plan

00:14:46 How Sales Reps Game Overcomplicated Plans

00:16:41 Accelerators, Timing Deals, and Quarter Misalignment

00:17:42 Ramp Periods and Realistic Expectations for New Reps

00:19:22 How AI Improves Forecasting More Than Sales Velocity

00:20:11 Quotas, Deal Volume, and the Physics of Sales Math

00:22:21 Cash Timing, Signed Comp Plans, and Avoiding Clawbacks

00:25:04 How AI Could Reshape Quotas and Sales Efficiency Assumptions

00:26:46 Improving Sales Performance by Moving the Middle of the Pack

00:28:16 Rethinking Compensation for Customer Success Teams

00:32:07 Usage-Based Pricing and Comping for Product Adoption

00:35:25 Business Blunders: Managing Slack, Boundaries, and Energy Vampires

00:38:06 Managing Slack Etiquette, Boundaries, and Closing Thoughts

#MostlyGrowthPodcast #SalesComp #GoToMarket #RevenueGrowth #B2BSaaS

...more
View all episodesView all episodes
Download on the App Store

Mostly GrowthBy Mostly Media