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Nuts and Bolts of Compensation Plan Design for Sales Development Representatives

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The best incentive compensation plans share a few things in common. They're stimulating, fair, and easy to understand. Yet, it's not so simple when designing and developing effective incentive plans. There are multiple factors that sales management and compensation program leaders need to consider. And it can be difficult to ensure that all considerations get addressed appropriately.

This is because there are many different approaches to commission plan design, each with strengths and limitations. There is no "right approach" for all companies due to differences in the role’s objectives, obligations, and internal ability to track and evaluate SDR results efficiently.

If you want to design an incentive plan for your SDRs that will motivate them to grow revenue, there are four core steps you want to take to determine the most suitable approach.

What you’ll learn:

  • The five core elements of plan design decision-making
  • Constraints you need to consider to ensure the incentive plan doesn’t get in the way of allocating your best resources to where they are most needed
  • Alternative compensation approaches based on how well SDRs align with role goals, responsibilities, and constraints

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