feat: Add comprehensive Sales Compensation Plan (Phase 4)
COMPENSATION_PLAN.md (7,200+ lines)
**What's Included:**
Compensation Structure:
- 7 role definitions with OTE (SDR $70K → VP Sales $300K)
- Base/Variable splits by role (50/50 for AEs, 70/30 for SDRs)
- Commission tiers with accelerators (5% → 20% at 120%+)
Quota Setting:
- Formula: (ARR Goal ÷ Reps) × Coverage Factor
- Quotas by role: SDR (240 SQLs), SMB AE ($250K), Mid-Market ($400K), Enterprise ($750K)
- Coverage factor rationale (1.2x for 80-85% attainment)
Commission Models:
- Tiered commission (recommended): 5% → 8% → 10% → 15% → 20%
- Flat commission alternative (10% all deals)
- Enterprise vs. SMB tier differences
New ARR vs. Expansion:
- Equal weight recommendation (100% credit each)
- Weighted alternative (100% new, 50% expansion)
Renewal Incentives:
- NRR-based bonuses ($5K-$20K/year)
- Separate from quota (encourages retention)
SPIFs:
- End-of-quarter bonuses ($5K)
- Product launch SPIFs ($2K per AI Platform deal)
- Multi-year contract bonuses (+5-10% commission)
- Case study bonuses ($3K)
Clawbacks:
- 90-day churn = commission repayment
- Exceptions for product failure or M&A
Payment Timing:
- Hybrid model: 50% on close, 50% on first payment
- Balances motivation with cash flow risk
Territory Adjustments:
- Enterprise: 1.5x quota multiplier (higher complexity)
- Mid-Market: 1.0x baseline
- SMB: 0.8x (higher volume, lower ACV)
Team Splits:
- AE: 80%, SE: 15%, SDR: 5%
- Rewards collaboration
Manager Compensation:
- Base $130K + $70K variable (tied to team quota attainment)
- Alternative: 2-3% override on team revenue
VP Sales Compensation:
- Base $180K + $120K variable (tied to company ARR)
- Accelerators at 110%+ attainment
Legal Compliance:
- Written comp plans required
- State labor law adherence
- No retroactive changes
- Upfront clawback agreements
Comp Plan Versions:
- v1.0 Startup ($0-$2M): 40/60 base/variable, aggressive SPIFs
- v2.0 Growth ($2M-$10M): 50/50, expansion ARR weighted equally
- v3.0 Mature ($10M+): 55/45, NRR bonuses significant
**Metrics to Track:**
- Average quota attainment: 80-85%
- % reps >100%: 30-40%
- Commission as % ARR: 10-15%
**Phase 4 Stats:**
- Total Documents: 23
- Total Lines: 13,148+
- Total Words: ~98,000+
**Next:** HEALTHCARE.md (industry vertical playbook)
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Co-Authored-By: Joaquin, Sales Master <noreply@blackroad.io>
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