Hello, we'd like to implement (ease into) a SPIFF or Commission model for our SDRs, who qualify leads & pass meetings to Account Managers. We're changing from a salary-only model, we have a long consultative sales cycle, pipeline is a big need for the company, and I'd like insight into how is best to start SPIFFs for the SDRs. We have 80/20 inbound/outbound split, and SDRs do both currently. Here's a sample proposal to use as a base for comments: Average SDR Compensation Base Salary $60,000 On-Target Earnings $70,000 Base % | Variable % 85.71% | 14.29% Base Commission Per Meeting $49.00 Tier / Multiplier / SPIFF per Meeting 0-9 Meetings / .8x / $39.20 10-17 Meetings / 1x / $49 18+ Meetings / 1.5x / $73.50 Breakdown by meeting set Vs. meeting held: Tier 0-9: $15.68 $23.52 Tier 10-17: $19.60 $29.40 Tier 18+ : $29.40 $44.10 Here are some questions that come to mind: Should we spiff on any other metrics within the SDR's control, like hitting a number of calls? Should we CAP the number of meetings? What if an SDR exceeds Cap? How to prevent sandbagging? Should we have a trial period to start (such as one quarter)? Spiff v. Commission - which is better to start with? Frequency of payment - monthly or quarterly? How do we determine if a meeting was really held? How to estimate ROI on the SPIFF plan for leadership? How to define "passed" meeting v. discovery meeting? Other things we didn't think of?

Posted by: Jason Heki
Posted: October 4th, 2022
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B2B Sales


SDR Compensation, Compensation