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How to Fix Your Broken Comp Plan

by | Jul 11, 2025

  • 00:04 – 00:37: Introduction of speakers Eric Charles (Fractional CMO/CRO) and Pete Shelton (CRO of Fullcast). Discussion on sales compensation challenges.

  • 01:24 – 04:22: Eric’s experience with manual commission tracking using spreadsheets at Sun Microsystems, leading to disputes, lack of transparency, and inefficiencies.

  • 04:47 – 07:38: Importance of clarity in comp plans – Reps should quickly know their earnings per deal. Complex plans hurt motivation.

  • 08:10 – 12:17: Shift to consumption-based pricing (e.g., AI credits) and its impact on comp. Challenges in paying reps for usage vs. upfront deals.

  • 13:10 – 14:58: Three consumption models:

    1. Committed credits (traditional SaaS, easy to track).

    2. Open container (pay accelerators as usage grows).

    3. Committed spend (quota-based, tied to usage).

  • 16:40 – 19:03: Reps becoming more involved in activation/account management due to consumption models. Trend of hunters shifting to farmers.

  • 19:21 – 20:56: Renewals and expansions now driving >50% revenue (Pavilion data). Comp plans must reflect retention metrics.

  • 22:33 – 23:52: Marketing’s role in revenue and challenges in aligning comp (e.g., MBOs vs. commissions).

  • 24:18 – 26:23: Services companies’ comp complexities (bookings vs. delivery, margin-based pay).

  • 28:25 – 32:05: AI/LLMs in commission platforms – Need for real-time data integration (e.g., Salesforce, ERP) and auditability.

  • 33:08 – 34:50: Territory/role changes and their impact on comp (e.g., pipeline disputes).

  • 39:16 – 43:50: Best practices for comp plans:

    • Visibility, simplicity (max 3 components), and rep control.

    • Avoid overcomplicating (e.g., square-root-based payouts).

  • 45:38 – 47:37: Feedback loops matter – Spiffs should drive behavior change, not just reward existing actions.

  • 48:08 – 50:56: Key features of a good comp platform:

    • Real-time data, dynamic modeling, earnings insights, dispute resolution, and forecasting.

  • 51:21 – End: Automation reduces disputes – Full visibility for reps (e.g., splits, adjustments, spiffs) improves trust.