Back

An SDR compensation plan that pays the SDR a bonus on completed demos.

Sales Development Rep

Demos Completed Bonus

Use SDR comp plans like this one when you want to reward your team for scheduling demos that actually occur. Under this sales compensation model, the SDR earns a bonus for every demo that runs that they scheduled. Note: This SDR comp plan does a great job of promoting quality demos and eliminating the risk of no-shows. To take it a step further, consider adding a Closed Won Commission, as well.

$75K

On-Target Earnings

$150K

Quarterly Quota

$51K:$24K

Base:Variable

8x

Quota:OTE

Model your plan
Forecast Earnings

Split

68:32

Quarterly Quota Bonus
Revenue:OTE

8.0x

We recommend a ratio of 4 to 10x

$1-$30 million

ARR

Build a funnel

Quarterly

Paths

Path 1: Quarterly Quota Bonus

Path Description

Quota

60 Demos quarterly

Type

Single Rate

Earnings Rule

$100 per deal

This plan includes a single path that pays a bonus following every demo completed that the SDR initially booked.

Plan Examples

Sample Sales Development Rep
Sales Development Rep

demos completed:

15

Bonus per demo completed:

$200
Sample Market Development Rep
Market Development Rep

demos completed:

90

Bonus per demo completed:

$100
Sample Business Development Rep
Business Development Rep

demos completed:

10

Bonus per demo completed:

$300

How to customize this plan

As with most compensation plans, the two major components that will vary across sales teams are:

Quota

First, you’ll need to decide on the quota period. We recommend both quotas have the same period. Your quota period is the frequency at which a rep is held to that sales quota.

In our experience, about 45% of the plans on QuotaPath fall under a quarterly quota frequency. Annual plans make up 25%, as do monthly quotas, and 5% consist of other frequencies, such as weekly, bi-weekly, or semi-annually.

We recommend aligning your quota to your sales cycle. Then, once you decide that, you’re ready to determine a quota that is low enough to be attainable and high enough to be valuable for your business.

Bonus Rate

The best way to start is by thinking about how many opportunities you want your SDRs to open each month or quarter. You can guess (we don’t recommend that!) or solve by figuring out how many qualified opportunities your SDRs should create to hit a financial target. (Hint: Use our Sales Funnel!).

When you have that determined, you’ll have the applicable bonus for your quota period. For monthly quotas, you’ll divide the annual bonus by 12.

For instance, say you have a target of 10 opportunities per month and an annual bonus of $12k. Divide $12k by 12 to reach the monthly bonus of $1k, which you would then divide by the 10 qualified opportunities, giving you a $100 bonus per qualified opportunity generated.

Frequently Asked Questions

Like the SDR Closed Won Commission plan, the Demos Completed Bonus plan gives your SDRs a reason to provide some quality control around who they are booking demos with. Because they only earn a bonus from demos that actually occur, they will be more motivated to only book demos with serious prospects.

Depends on your business needs! Some plans offer a $20 bonus per demo completed, while others offer a $500 bonus per demo completed. To come up with a bonus rate that makes sense for your business, look at the value of each of these opportunities. A quick way to figure this out is to take your ASP (average sales price) and multiply that by your qualification rate and then qualified:close rate. If your ASP is $25k and you qualify 40% of your opps, then a demo is worth $10k in qualified pipeline. Then if your qualified-to-close rate is 30%, each completed demo is worth $3k for your business on average. So paying $20 for each of those opps seems a bit low, and you want to motivate your SDRs to book as many demos that actually come to fruition as possible.

Sales commissions and bonuses both classify as variable compensation. Commissions differ from bonuses in that bonuses reward a pre-determined dollar amount that doesn’t vary. Commissions, on the other hand, consist of a percentage of the total revenue from a deal that changes most oftenly based on the annual recurring revenue (ARR) or total contract value. For example, If an SDR earns 4% of every deal that eventually closes, that’s commission. Meanwhile, if a rep earns $200 on every qualified opportunity they create, that’s a Single Rate Bonus! To see commissions and bonuses tracked automatically in QuotaPath, book a time with our team here.

Other SDR commission structure templates include the Qualified Opportunity Bonus, which pays a rep a fixed rate bonus for every qualified opportunity they pass on to sales. Or, you can offer just the Closed Won Commission to reward the rep a set percentage on every deal that closes from their leads. For a blend of the two, you can look into the Qualified Opportunity Bonus. In any case, QuotaPath can track and payout these plans to make it a bit easier on your finance and revenue teams.

smiling team

Manage compensation & track commissions with QuotaPath

Deliver visibility, automation, and seamlessness across the entire compensation process.

Compensation Hub provides RevOps, Finance, and Sales teams with a free sales compensation plan modeling tool to design meaningful comp plans in a few steps. Built by QuotaPath, a sales compensation and commission software, Compensation Hub includes sales compensation plan examples (including AE and SDR comp plans), a library of commission structure templates, and variable compensation recommendations and use cases for each plan. Each commission plan or bonus structure features adjustable variables so that leaders can create plans aligned with their business goals and historical numbers. These variables include on-target earnings (OTE), annualized quota, average contract value (ACV), annual recurring revenue (ARR), quota frequency, and more. Once a plan is ready, leaders can easily share it within their organizations and save it to see it automated in QuotaPath's free commission tracking software. For additional comp management support, and to learn how QuotaPath is helping teams everywhere bring visibility and accuracy to sales comp, book time with their team for a custom demo.

Copyright © QuotaPath 2023. All rights reserved.