When To Use An MBO Bonus Plan

One of the most important questions that company leaders ask is “How much are these comp plans going to cost us?”  That is where plan modeling or costing comes in.  This is the time of year when companies are creating sales compensation plans for next year.  They usually invest time in determining the best mechanics (e.g. thresholds, accelerators, caps, etc.).  They also spend an extensive am...

If you have ever been in a sales role, or played a part in a sales compensation program – then you most likely have heard the term “draw”.  There are two main types of draws, recoverable and non-recoverable.  There are two types because they accomplish different objectives and are processed differently.  Depending on your objective, you can utilize draws to enhance your sales compensation pro...

If you have ever designed sales compensation plans, the suggestion to build an incentive plan and then change it quarterly may have been proposed.  Perhaps leadership needs this flexibility because of the many unknowns in planning.  Maybe the company is going through restructuring, where the sales organization and goals are shifting – yet the sales team needs a pay plan so that they can be re...