Q: What makes this a good SDR compensation plan?

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.

Question 1

What makes this a good SDR compensation plan?

Accepted Answer

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.

Question 2

What’s a good bonus rate for this SDR comp plan?

Accepted Answer

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.

Question 3

What’s the difference between sales commissions and bonuses?

Accepted Answer

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.

Question 4

What other SDR comp plans should I consider?

Accepted Answer

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.