Why 40% of Sales Teams Make Less Than 80% of Quota: New Insight about Sales Comp Plans

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This Wednesday, Selling Power and Xactly Corporation will host a joint, complimentary Webinar, "New Insights on Helping Sales Reps Meet or Exceed Quota," to reveal best practices on sales compensation plans. Insight is based on aggregate data related to sales compensation plans and commissions from more than 600 Xactly customers.

On average, 40% of sales teams make less than 80% of quota.

Today Selling Power announced that it will host a joint Webinar with Xactly Corporation, New Insights on Helping Sales Reps Meet or Exceed Quota. The Webinar will take place on Wednesday, May 22 at 1 PM Eastern Time and will feature insight based on aggregate data related to sales compensation plans from more than 600 Xactly customers. Registration for the Webinar is free.

For more than eight years, Xactly has aggregated sales performance and transaction data from hundreds of its client companies. This data has shown that, on average, 40% of sales teams make less than 80% of quota.

In this Webinar Erik Charles, Principle Incentives Strategist at Xactly, will share additional data from Xactly's findings and discuss how to apply the insights to improve sales results.

Charles will discuss strategies such as:

  •     How quota timing and short and long measurement periods can deliver different results.
  •     What to look for when determining the true total cost of a sale.
  •     How sales managers can hurt performance by measuring too much.

Gerhard Gschwandtner, Founder & CEO of Selling Power, will cohost the Webinar. In a recent video interview at the Sales 2.0 Conference, Xactly CEO Chris Cabrera told Gschwandtner that many companies are clinging to outmoded compensation plans. “Many companies I talk to are paying [commissions] the same way they paid 20 years ago,” Cabrera said.

Cabrera said he has gleaned many best practices from aggregate data from Xactly customers, representing $4 billion in yearly transactions and a sum total of $6 billion in sales-commission payouts. For example, Cabrera shared that component plans (i.e. plans that drive specific behaviors among sales reps) should ideally contain no more than three parts.

“Our data shows that people who have one component do well,” Cabrera said. “Two is better than one. And three is better than two. Beyond four and five, performance drops [because] you’re asking [reps] to juggle too many things. For the first time, there’s data to back this up.”

Registrations for the May 22 Webinar will be available until the Webinar goes live. A recording will be accessible 24 hours after the event takes place.

About Selling Power
In addition to Selling Power magazine, the leading periodical for sales managers and sales VPs since 1981, Selling Power Inc. produces the Sales Management Digest and Daily Boost of Positivity online newsletters, as well as a five-minute video series featuring interviews with top executives. Selling Power is a regular media sponsor of the Sales 2.0 Conference.

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Lisa Gschwandtner
Selling Power
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