Delaying compensation plans until after the fiscal year begins creates a vacuum where salespeople are unsure how to behave. This uncertainty paralyzes productivity and demotivates the team, wasting the energy generated by the sales kickoff (SKO).

For complex legal requests that increase your business risk or costs (e.g., unlimited liability, extensive insurance requirements), treat them as an additional negotiation lever. Explain that your standard pricing is based on a reasonable, collaborative risk profile. Accepting their terms changes that profile and will require adjusting the price accordingly.

A one-size-fits-all sales role fails in consumption models. Success requires segmenting the team into specialized roles—new business acquisition, customer onboarding, and account management—each with distinct incentives aligned to their specific function, from initial sign-up to value realization and expansion.

Don't hire more reps until your current team hits its productivity target (e.g., generating 3x their OTE). Scaling headcount before proving the unit economics of your sales motion is a recipe for inefficient growth, missed forecasts, and a bloated cost structure.

Don't finalize a comp plan in an executive silo. Share the draft with trusted, top-performing reps and ask them to break it. They will immediately spot loopholes and unintended incentives, allowing you to create a more robust plan that drives the right behaviors from day one.

Before investing time to create a perfect offer, secure a conditional commitment by asking, 'If I can deliver on these specific things we've discussed, do we have a deal?' This tactic prevents the prospect from backing out to 'think about it' and ensures your efforts are aligned with a committed buyer.

Salespeople's biggest frustration with comp plans is being held accountable for outcomes they can't directly influence. This perceived unfairness is a primary driver of attrition, making it critical to align incentives strictly with a seller's direct responsibilities and control.

Instead of treating high commission payouts as a pure expense, view them as a marketing asset. Actively ensuring it's known that top reps make a lot of money serves as the best possible recruiting tool, attracting other A-players to your company.

Annual plans can't predict every business need, like a new product launch or acquisition. A pre-approved budget for discretionary incentives (SPIFs) allows sales leaders to quickly motivate reps toward new, unforeseen priorities without having to disrupt the core compensation plan mid-year.