THE ROLE
The account executive (AE) is your traditional sales role. They are the main point of contact during the sales cycle, fostering prospect relationships, and have a larger influence on the outcome of a deal than any other member of your sales team.
CORE RESPONSIBILITIES
Nurturing leads and newly-identified target accounts
Moving qualified prospects through the sales funnel
Coordinating internal resources
Building rapport with key stakeholders
Pushing deals across the finish line
HOW TO MOTIVATE THEM
AEs have the biggest impact on the outcome of a deal, which makes this job one that requires a more aggressive compensation structure. You need individuals in this role to be highly motivated to close deals, which is why AE pay mix generally has a higher ratio of variable pay than base salary.
AE plan components should focus on the total amount of revenue brought in, selling specific products or services, and bundling offerings for larger opportunities. This ensures that reps are rewarded for closing deals—including those tied to corporate objectives—and compensated fairly if they should struggle to meet goals.
Compensation Plans for Account Executives
Pay Mix (Base/Variable) : 50/50 or 60/40
Plan Components : Incentivize AEs for the total amount of revenue sold, deals with specific products or services, and market penetration.
THE ROLE
The sales development rep (SDR) is often an entry-level role to introduce a person into the sales world, sometimes referred to as “cold callers.” They help identify and qualify new leads to pass on to AEs and are a primary source of new sales opportunities for your organization.
CORE RESPONSIBILITIES
Sourcing leads and engaging with them via phone, social media, or email
Nurturing and further qualifying marketing-sourced leads
Performing discovery calls and setting introductory meetings with AEs
HOW TO MOTIVATE THEM
SDRs play a critical role in sourcing new leads and opportunities for account executives. They are typically the first person a prospect interacts with at your company, which sets the tone for the entire buyer’s journey.
Since they are not directly involved in closing deals, their pay mix will typically have a higher ratio of base pay. This role should be measured on components like the number of new target accounts identified, leads qualified, and prospect meetings booked with AEs.
Compensation Plans for SDRs
Pay Mix (Base/Variable) : 70/30
Plan Components : Measure SDRs on their ability to qualify leads and the number of prospect meetings set with AEs.
THE ROLE
Sales consultants, also known as sales engineers or specialists, are your in-house experts and play an important role later on in the sales cycle. They present demos, develop proposals, and provide expertise by answering in-depth questions and addressing any objections or concerns prospects may have.
CORE RESPONSIBILITIES
Develop proposals for prospects
Present product and service demos
Provide expertise and relevant information
HOW TO MOTIVATE THEM
Demos are important to building trust and providing an in-depth look at your products and services before prospects agree to buy. But this role isn’t as involved as their AE counterparts, so their pay mix should be less aggressive. Sales consultants should be measured on the quality and expertise of their demos and the impact they have on deal progression.
Compensation Plans for Sales Consultant
Pay Mix (Base/Variable) : 65/35
Plan Components : Reward sales consultants for the quality of their demos and the resulting deals closed and won.
THE ROLE
Customer success reps (CSR) are responsible for managing customer accounts after a sale. They focus on growing relationships, renewing existing contracts, and upselling customers with different products and service add-ons.
CORE RESPONSIBILITIES
Renewing existing contracts
Cross-selling and upselling
Reducing customer churn
HOW TO MOTIVATE THEM
CSRs are critical to maintain customer relationships and grow existing business revenue. Post-sale, they are the main point of contact for customers, and they influence both customer satisfaction and lifecycle
This role should be incentivized to close additional business, increase contract amounts during renewals, and sell add-ons to existing customers. Depending on your goals, CSRs will generally have pay structures less aggressive than an AE, similar to an SDR or sales consultant.
Compensation Plans for Customer Success
Pay Mix (Base/Variable) 65/35
Plan Components : Incentivize CSRs for upsells and add-on business, customer retention, and satisfaction scores.
THE ROLE
Sales managers play a critical role in leading your company to success. They focus on coaching reps, ensuring CRM data health, helping prioritize deals, and occasionally jump on sales calls to help progress deals through the pipeline.
CORE RESPONSIBILITIES
Sales coaching and training
Prioritizing deals and opportunities
Monitoring overall team performance
Managing CRM data
Helping accelerate deals through the pipeline
HOW TO MOTIVATE THEM
Sales managers are no strangers to the roles on your team and the impact they have on the sales cycle. Chances are they held one or more of those positions in the past, so they’re your sellers’ main advocates. Your sales managers’ biggest responsibility is empowering their teams to succeed, and that should be the basis for their incentive compensation. Since they’re not directly selling, their pay mix will have a much higher base pay than the rest of your team. Reward sales managers for their team performance, administrative duties (e.g., coaching, CRM and data management, etc.), and the deals they help influence in the pipeline.
Compensation Plans for Sales Managers
Pay Mix (Base/Variable): 75/25 or 80/20
Plan Components : Measure sales managers on their overall team performance, rep coaching, and data quality and entry.