TechSellerate, How to Pay Your First Sales Rep!

This video features a detailed discussion led by Alex Courson about structuring compensation plans for MSP sales teams. Alex emphasizes the importance of aligning incentives with desired outcomes and setting realistic activity targets for achieving sales goals. Key points include:

Activity-based Compensation: MSPs need to identify specific activities (e.g., calls, meetings) required to meet revenue targets and design plans that reward these activities.
Granularity and Goals: Breaking down individual goals like meetings and opportunities to track performance and ensure accountability.
Pay-for-Performance Philosophy: Compensation is tied to meeting or exceeding targets, but overpaying or rewarding underperformance is discouraged.
Stretch Goals and Incentives: Suggestions for additional bonuses or "spiffs" for exceeding targets to motivate sales teams.
Flexibility in Variable Results: Recognition that results like meetings and opportunities can fluctuate monthly; thus, compensation should reflect actual outcomes without excessively rewarding subpar performance.
The video provides practical advice for MSPs on designing balanced, effective compensation structures to drive results while maintaining fairness and clarity.