Category: Compensation

Compensating Your First Employees When You are Cash Poor

Many startups begin with a founder that spends part-time on the idea while still having a paying job.  Another common approach is to secure a small amount of funding via…

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Documenting Your Sales Compensation Plan

I can’t tell you how many startups go through the effort to think through the best method to compensate their sales team but don’t take the next step to document…

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Two Variants of the Straight Line Sales Commission Plan

In the spirit of keeping a sales commission plan simple, many business owners or sales executives choose to use a simple straight-line methodology.  In other words, 88% achievement of the…

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Absolute Versus Relative Sales Commission Plans

Compensating a sales team is a tricky and sensitive endeavor that requires a lot of advanced planning.  I previously wrote about my 5 Golden Rules of Sales Compensation.  But even if…

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MBOs Demystified

Certain roles in the company call for a bonus as part of the total compensation plan.  But what criteria should be used for determining the bonus payout?  Common choices include company-level,…

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Compensating an Advisor

How much equity should you give an advisor?  Should the shares carry any special provisions like anti-dilution or change-of-control acceleration?  What about giving the advisor cash compensation?  Tough questions for…

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5 Golden Rules of Sales Compensation

Sales incentive plans are really delicate things.  This stems from the fact that the best sales reps/managers intuitively do whatever puts the most money in their pocket.  They do so…

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Is Your Sales Incentive Plan Driving Bad Behavior?

Within legal and ethical limits, a good sales rep should do whatever puts the most money in their pocket and it’s up to the company to make sure their associated actions and…

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