Commission Plan Design & Implementation - Project Details / Task List
Tag: commission-plan
Total Hours: 60h
Structure: Multi-Milestone (>50h)
Milestone 1: Commission Plan Design & Implementation - 1. Assessment, Design & Tracking
Tag: commission-plan
Description: Discovery of current state, commission plan design, crediting rules, and tracking system implementation.
Hours: 40h
Task List: (Commission Plan) 1. Assessment & Plan Design
Contains: Parts 1-2
| Task | Est | Description |
|---|---|---|
| 1. Audit Existing Commission Plans and Payout Structure | 2.5h | Review all current commission plans, payout documentation, and historical data to understand what exists today. End state: Complete inventory of existing plans with gap analysis documented. • Collect all existing commission plan documents, spreadsheets, and policy memos • Interview Finance/RevOps on current payout calculation process and timeline • Pull 6-12 months of historical payout data to identify patterns and anomalies • Document current commission rates, thresholds, accelerators, and caps by role • Identify which roles are covered (AE, SDR, AM, CS, Sales Engineers) and gaps • Note any informal or undocumented "exceptions" that have been granted |
| 2. Assess Current Tracking and Calculation Process | 2.5h | Evaluate how commissions are currently calculated, tracked, and communicated to reps. End state: Process map showing current workflow and pain points identified. • Map the end-to-end commission calculation workflow (data source to payout) • Identify all tools currently used (CRM, spreadsheets, commission software) • Document manual steps, handoffs, and approval processes • Interview 2-3 sales reps on their experience with commission visibility and disputes • Quantify time spent on commission administration (RevOps/Finance hours per month) • List top complaints and dispute types from past 6 months |
| 3. Review Business Goals and Benchmark Against Industry | 2h | Align commission plan objectives with company revenue goals and compare against B2B SaaS benchmarks. End state: Documented goals for new plan and benchmark comparison complete. • Meet with leadership to understand revenue priorities (new business vs. expansion vs. retention) • Document target pay mix (base vs. variable) by role - benchmark is 50/50 for AEs • Review quota-to-OTE ratios - benchmark is 4-6x OTE for annual quota • Research industry commission rates for similar company stage/size (typically 8-15% on ACV) • Identify behaviors the company wants to incentivize or discourage • Document any budget constraints or finance requirements for new plan |
| 4. Define Plan Structure and Commission Rates | 3.5h | Design the core commission structure including base rates, tiers, and calculation methodology. End state: Draft commission rate structure documented for each covered role. • Determine commission basis (ACV, TCV, MRR, bookings) and timing (closed-won, collected, etc.) • Set base commission rates by role (AE, SDR, AM) aligned with benchmarks • Design tiered structure if applicable (e.g., 10% to quota, 15% above quota) • Define accelerators for overperformance - 82% of SaaS companies use these • Determine if decelerators apply for underperformance (below threshold) • Document whether commissions are capped or uncapped (fewer than 15% of SaaS companies cap) |
| 5. Design Quota Framework and Thresholds | 3h | Establish quota methodology, thresholds, and attainment calculations that are achievable yet ambitious. End state: Quota framework documented with threshold and ramp policies. • Define quota-setting methodology (top-down, bottom-up, or hybrid) • Set quota attainment threshold to unlock commissions (typically 50-70%) • Design ramp quotas for new hires (common: 25%/50%/75%/100% over first 4 months) • Establish quota adjustment policies for territory changes or leave • Define measurement period (monthly, quarterly, annual) and how attainment rolls up • Document draw policies if applicable (recoverable vs. non-recoverable) |
| 6. Create Multi-Year and Special Incentive Structures | 3h | Design incentives for strategic behaviors like multi-year deals, specific products, or milestone achievements. End state: Special incentive structures documented and aligned with business priorities. • Design multi-year contract incentives (e.g., 1-year at 10%, 2-year at 12%, 3-year at 15%) • Create SPIFFs or bonuses for strategic priorities (new product, new market, etc.) • Define milestone-based payout splits if applicable (e.g., 70% at close, 30% at go-live) • Establish clawback policies for churned deals (over half of SaaS companies use clawbacks) • Design team or overlay commission structures if multiple roles touch deals • Document any kickers or bonuses for full-year performance |
Task List: (Commission Plan) 2. Crediting Rules & Tracking
Contains: Parts 3-4
| Task | Est | Description |
|---|---|---|
| 7. Define Deal Ownership and Crediting Rules | 3h | Establish clear rules for who gets credit on deals to prevent disputes and confusion. End state: Crediting rules documented covering all common scenarios. • Define primary ownership rules (territory-based, account-based, opportunity-based) • Establish rules for inbound vs. outbound sourced deals • Document split credit scenarios and percentages (AE/SDR, AE/AE, overlay roles) • Define handoff rules for deals that cross territories or segments • Establish time-based crediting rules (e.g., credit follows account for 90 days after transfer) • Document "house account" or unassigned deal handling |
| 8. Establish Dispute Resolution Process | 2h | Create a clear, fair process for resolving commission disputes quickly. End state: Dispute resolution process documented with escalation path and SLAs. • Define dispute submission process (form, email, system) • Establish review timeline SLA (e.g., initial response in 48 hours, resolution in 5 business days) • Identify dispute resolution committee or decision maker • Document appeal process for contested decisions • Create FAQ document for common scenarios to reduce dispute volume • Set up dispute tracking to identify patterns requiring policy updates |
| 9. Document Exception Handling Policies | 2h | Define how edge cases and exceptions will be handled to prevent ad-hoc decisions. End state: Exception policies documented with approval authority defined. • Document deal types that require special handling (channel, strategic, professional services) • Define approval authority levels for exceptions (manager, VP, C-level) • Establish policy for deals closed during transition periods (plan changes, territory changes) • Create guidelines for commission adjustments due to data errors • Document how discounting impacts commission (if at all) • Establish annual review process for exception patterns |
| 10. Select and Configure Tracking Solution | 4h | Choose the appropriate tracking method (CRM, commission software, or spreadsheet) and configure it. End state: Tracking system selected, configured, and connected to data sources. • Evaluate tracking options based on budget and complexity (Salesforce reports, CaptivateIQ, QuotaPath, Everstage, spreadsheet) • Connect tracking system to CRM opportunity data (closed-won deals, amounts, dates) • Configure role-based views (rep sees own commissions, manager sees team) • Set up commission rate tables and quota assignments in system • Configure calculation logic matching designed plan (rates, tiers, accelerators) • Test calculations against historical data to validate accuracy |
| 11. Build Real-Time Dashboards and Reporting | 4h | Create dashboards that give reps and managers visibility into performance and projected earnings. End state: Dashboards live with real-time or near-real-time data. • Build rep-facing dashboard showing: quota attainment, commissions earned, projected payout • Create manager dashboard showing: team attainment, payout forecast, individual performance • Set up Finance/RevOps admin views for payout processing and auditing • Configure alerts for key events (deal closed, quota achieved, accelerator triggered) • Build month-end and quarter-end commission summary reports • Document data refresh frequency and any lag between CRM and commission system |
| 12. Establish Payout Processing Workflow | 2.5h | Define the end-to-end process from commission calculation to actual payout. End state: Payout workflow documented with timeline, approvals, and integration to payroll. • Define commission calculation cutoff dates and payout schedule • Establish approval workflow (RevOps calculates, Finance approves, Payroll processes) • Configure exports or integrations to payroll system • Create reconciliation checklist for each payout cycle • Document error handling and correction process for payout mistakes • Set up audit trail for all commission calculations and adjustments |
Milestone 2: Commission Plan Design & Implementation - 2. Testing, Rollout & Handoff
Tag: commission-plan
Description: Plan validation, sales team enablement, launch, and handoff to client.
Hours: 20h
Task List: (Commission Plan) 3. Testing, Rollout & Handoff
Contains: Parts 5-7
| Task | Est | Description |
|---|---|---|
| 13. Validate Plan with Historical Scenarios | 3h | Test the new commission plan against historical deals to validate it produces expected results. End state: Plan validated with no unexpected outcomes or edge cases unaddressed. • Run 20-30 historical deals through new plan calculations • Compare new plan payouts to what would have been paid under old plan • Identify any reps who would be significantly impacted (positive or negative) • Test edge cases: splits, multi-year deals, clawbacks, ramp reps • Validate accelerator and tier calculations at different attainment levels • Document any plan refinements based on testing results |
| 14. Conduct User Acceptance Testing with Stakeholders | 2.5h | Have Finance, RevOps, and select sales leaders review and approve the plan and tracking system. End state: Sign-off from all stakeholders on plan design and tracking implementation. • Walk Finance through calculation methodology and payout workflow • Review plan documents with Sales Leadership for clarity and fairness • Have 2-3 sales reps test dashboard and verify they can understand their commissions • Address feedback and make final adjustments • Obtain formal sign-off on commission plan document • Document any approved exceptions or special cases |
| 15. Create Commission Plan Documentation Package | 3h | Develop comprehensive documentation for reps, managers, and administrators. End state: Complete documentation package ready for distribution. • Write sales rep-facing commission plan summary (2-3 pages, plain language) • Create visual one-pager showing rates, thresholds, and examples • Develop FAQ document addressing top 20 anticipated questions • Build example scenarios showing commission calculations at different attainment levels • Create manager guide for explaining plan to team and handling questions • Develop admin runbook for RevOps/Finance on payout processing |
| 16. Conduct Sales Team Enablement Sessions | 2.5h | Train all reps and managers on the new commission plan and tracking system. End state: All covered roles trained and able to access their commission data. • Schedule training sessions by team or segment (45-60 minutes each) • Cover: plan structure, rates, quotas, crediting rules, how to check earnings • Walk through real examples and calculations • Demonstrate dashboard and how to access commission information • Address questions and document any requiring policy clarification • Record session for onboarding future hires and absent attendees |
| 17. Launch Plan and Monitor Adoption | 3h | Go live with the new plan and actively monitor for issues in the first 30-60 days. End state: Plan live with smooth adoption and minimal disputes. • Announce plan launch with communication from Sales Leadership • Distribute documentation package to all covered roles • Monitor dispute volume and types in first 30 days • Track dashboard adoption (who's logging in, how often) • Hold office hours for questions in first two weeks • Schedule 30-day check-in with Sales Leadership to review adoption and issues |
| 18. Transfer Ownership to Client Team | 3h | Hand off all documentation, credentials, and processes to client RevOps/Finance. End state: Client self-sufficient to administer commission plan ongoing. • Transfer admin access to commission tracking system • Deliver complete documentation package (plan doc, runbooks, FAQ) • Train client admin on monthly payout process and troubleshooting • Document process for annual plan updates and quota setting • Provide templates for onboarding new reps to commission plan • Schedule 60-day follow-up call to address any questions |
| 19. Establish Ongoing Review Cadence | 3h | Set up the governance structure for ongoing plan management and optimization. End state: Review cadence established with clear ownership and KPIs defined. • Define quarterly commission plan review meeting (attendees, agenda) • Establish KPIs to monitor: quota attainment distribution, payout accuracy, dispute rate • Create annual commission plan refresh process and timeline • Document change management process for mid-year plan adjustments • Set up feedback channel for reps to submit plan improvement suggestions • Close out project with final summary and lessons learned |
Summary
- Total Milestones: 2 (40h + 20h)
- Total Task Lists: 3 (consolidated from 7 Parts)
- Total Tasks: 19 (one per Step)
- Total Hours: 60h
- Generated from: playbook_commission-plan-design-and-implementation.md
- Generated on: 2025-12-31