What is a Sales Comp Plan in SaaS?

Your Complete Guide

Are you ready to take your SaaS business to the next level?

Understanding and implementing a sales compensation plan can be vital to achieving success. A well-crafted comp plan will help motivate your sales team, incentivizing them to reach their targets and boost revenue for the business.

This guide will provide essential information about a sales comp plan in SaaS and how it works. We'll discuss different types of plans, strategies for setting up incentives, and how you can use data-driven insights to craft effective compensation models that drive results.

Read on for everything you need to know about creating a successful sales comp plan in SaaS!

What Is a Sales Comp Plan?

A sales comp plan is an incentive-based structure that rewards sales personnel for meeting specific goals. This type of compensation typically involves performance metrics such as sales growth, revenue targets, customer retention, and other factors. 

A sales comp plan aims to motivate and reward sales teams for their efforts while helping meet the company's goals. 

For example, a sales comp plan might include bonuses for top performers or incentives for hitting certain milestones. A well-crafted plan ensures all team members work toward a common goal.

What Are the Benefits of a Sales Comp Plan?

A sales comp plan can be an effective tool for increasing sales productivity and motivation in SaaS companies. Salespeople are likely to perform at their best and reach the desired goals by offering incentives and rewards for meeting specific targets. 

Some other benefits of developing a solid comp plan might include the following:

  • Better teamwork: A sales comp plan can create a sense of collaboration among sales teams as they work together to achieve their goals. 
  • Improved recruiting: You can use a sales comp plan to attract and retain top talent, giving your company a competitive edge.
  • Higher motivation: A sales comp plan can ensure that salespeople are motivated to continue to strive for success, as they are rewarded for their efforts. This can create a positive and productive work environment, increasing sales and profits.

For example, suppose you're offering a commission-based plan. In that case, it can help ensure everyone focuses on the same objectives. That way, all sales team members can benefit from reaching goals instead of just one person getting all the rewards. 

For instance, if a salesperson closes five deals, they all receive a bonus instead of just one person receiving the commission. Doing so keeps everyone motivated to achieve the desired goals and can help drive up sales.

What Are the Types of Sales Comp Plans in SaaS?

There are various types of sales comp plans in SaaS. 

Let's explore some of the most common:

  • Fixed salary: This type of plan pays a predetermined salary or commission to the salesperson regardless of performance. This can benefit new employees or those without a lot of sales experience.
  • Variable compensation: The money paid to the salesperson is based on their performance. This can be a more effective way to motivate salespeople, as they know their efforts will be rewarded with increased earnings.
  • Commission-based: A commission-based plan pays a percentage of each salesperson's sales. This can be an effective way to incentivize salespeople to close more deals and maximize revenue.
  • Quota-based: This type of plan rewards the salesperson for meeting specific goals or quotas, such as a certain amount of revenue or the number of customers.

Depending on the needs of your company, there are many other types of sales comp plans that you can explore.

By taking into account the goals and objectives of your business, you can develop a plan to motivate and reward your sales team while helping meet the company's goals.

How Can You Structure a Solid Sales Comp Plan?

When designing a sales comp plan in SaaS, it is essential to consider the company's overall goals and objectives. You should tailor the plan to the company's specific needs. It should also account for the individual capabilities of each salesperson and the team. 

Additionally, you should structure the plan to incentivize salespeople to achieve their goals while helping the company achieve its objectives.

For example, you may want to structure the plan so that it rewards salespeople for closing specific deals or reaching certain quotas. This can help ensure that the team is focused on the same objectives while providing an incentive to achieve those goals.

Some other essential steps might include:

1. Set clear goals and expectations for the sales team

As with any other business, a sales comp plan should be based on clear objectives and expectations. This will allow everyone to understand what is expected of them regarding performance and help ensure they are motivated to achieve their goals.

2. Develop an incentive plan that rewards performance.

To ensure the sales team is motivated to reach their goals, consider designing an incentive plan that rewards performance. This could include commission-based, quota-based, or variable compensation plans.

3. Track sales performance and provide feedback.

Make sure you regularly track your sales team's performance and provide them with feedback so they can make adjustments and improve. This will help ensure that everyone is on track to reach their goals.

4. Monitor progress and reward success.

In addition to providing feedback, it is essential to monitor progress and reward success. You can do this through bonuses or other incentives that recognize the achievements of individual salespeople or the entire team.

A well-structured sales comp plan can be critical in helping to ensure that your team is motivated and achieving its goals.


A sales compensation plan is an integral part of any successful SaaS business.

When properly structured, it can incentivize salespeople and ensure the team is motivated and focused on reaching their goals.

Hopefully, this article has given you a better understanding of creating an effective sales comp plan.

Considering your objectives and planning accordingly will ensure your team is motivated and focused on reaching its goals while helping your company maximize its revenue.


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