First Look from BenchSights
Surprise, Surprise… AEs Respond to Variable Comp!
Who knew? Salespeople respond to strong variable comp incentives… But by how much? New data from 50 BenchSights members provides real proof from your peers and insights into how well these plans actually work. Here’s the chart:
What Percentage of Quota Capacity Did Your AEs Achieve?
- AE teams with 50% or more of their compensation paid through variable comp @ on-target-earnings, delivered 100% of their Quota Capacity (QC)
- AEs with comp plans paying 33% or less variable comp delivered roughly half of QC
That’s a performance gap of 2x!
What does this mean for you? Anyone with an AE comp plan paying less than 50% variable comp, should take a serious look at making some changes.
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* On-target-earnings (OTE) is the amount AEs earn when they achieve quota
* Quota Capacity (QC) is the aggregate bookings that would be achieved by the sales team if all ramped AEs delivered quota