Sales compensation design is notoriously tricky for software companies. It forces hard conversations about company goals, the profile of sellers that you want to hire, and how to use compensation to drive the right incentives and behaviors.
For companies that pair self-service and sales-assisted motions, that complexity multiplies. Common questions I get asked include:
Are there different sales roles and comp plans for PLG companies?
Should I compensate reps for deals that close via self-serve?
Should I pay the same amount for landing new deals as I do for expanding accounts?
Today’s newsletter unpacks sales comp design with a specific eye toward those balancing product-led and sales-led motions. Keep reading to learn:
What are the components of a sales compensation plan?
How do I build a sales compensation plan at a PLG business?
What else should I consider when navigating PLG sales compensation?
Special thanks to Alexandra Maas (Director, Talent at OpenView) and Ben Chambers (Sales Compensation Consultant) for their contributions to this piece.
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