What to do: Personalize quotas and update them regularly. At most security integrators, salespeople manage unique markets at different stages of maturity. Within a single small integrator, one average performer might generate $6 million while a top performer generates $2 million. They should not carry the same quota. Each year, salespeople should bring current customer and pipeline data to the table, while leadership contributes macroeconomic and historical data, and together they land on a reasonable number for each person. The quota conversation itself has value.
Superstars and mediocre salespeople are being paid about the same. Many security integrators base compensation plans on dollars alone. The result is several overpaid account managers and a few underpaid business developers – which leads companies to regularly lose the people they most need to keep.
What to do: Update the compensation plan to more aggressively reward superstars and reduce compensation for those who are simply taking orders. This will invite fear of losing account managers. Manage that transition by implementing the new plan gradually and transparently. You may lose some, but you'll manage it over time – and within a year or two, the sales team will be running with happy superstars and satisfied account managers.
Rewarding SaaS client retention – not just ARR – is becoming the norm. When integrators first moved into SaaS, the standard advice was to pay commissions up front to spark behavior. But ICONIQ Growth's research shows it's more valuable to pay salespeople ongoing residuals. In a subscription model, mitigating attrition can be more critical than landing new customers. A salesperson who books a deal and disappears is expensive.
What to do: Pay enough commission up front to change behavior, then pay the remainder as a residual. As residuals build, the ongoing proactive work with customers that reduces attrition becomes habit rather than chore.
Sales compensation expectations are changing. Companies that stay ahead of these trends – rather than waiting until the pain is obvious – can use them to optimize performance every year.