Resource
SpreadsheetSales Compensation
Model
Use this spreadsheet to pressure-test SDR and AE compensation plans against revenue targets, close rates, deal size, and team profitability.
Preview the model
LockedSales Compensation Model
A compensation planning model for testing base and variable pay assumptions against team structure, revenue targets, and conversion metrics.
Comp Structure
Model base versus variable pay for SDRs and AEs instead of relying on generic market-rate assumptions.
Revenue Fit
Tie compensation decisions back to revenue target, average contract value, and close-rate assumptions.
Role Scenarios
Test how changes in headcount, mix, and incentive design affect rep economics.
Profitability Check
Make sure the plan still motivates reps without damaging the overall profitability of the team.
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What This Helps You Do
Design comp around the economics of your business
Incentive Design
Build compensation plans that motivate performance while staying grounded in how the business actually sells.
Scenario Testing
Compare different mixes of base pay, close-rate assumptions, and team size before locking in a plan.
Profit Protection
Check whether the comp plan supports the target without eroding team-level profitability.
FAQ
Before you open the resource
What does the Sales Compensation Model help teams evaluate?
It helps teams evaluate how SDR and AE compensation plans perform against revenue targets, contract value, close rates, and other business-specific assumptions. That makes comp planning more grounded than using generic market data alone.
Why should compensation be tied to business metrics?
Because compensation should reflect how the business actually generates revenue. Plans that ignore deal size, conversion rates, and target economics can motivate the wrong behavior or hurt profitability.
What kinds of inputs should teams test in the model?
Teams should test different base-versus-variable pay mixes, more conservative or aggressive close-rate assumptions, and changes in the number of SDRs and AEs. Those scenarios help reveal whether the plan still makes sense under different operating conditions.