When we began building a new compensation structure for one of my clients, the goal was simple:
Create a plan where all four parties—reps, managers, the company, and customers—win.
Because if everyone isn’t winning, the plan will eventually collapse.
1. Win | Win | Win | Win
- The Rep wins by earning more through consistent activity and measurable sales performance.
- The Manager wins by coaching effectively and driving new customer acquisition and revenue growth.
- The Company wins through predictable, sustainable results.
- The Customer wins with better service, consistent follow-up, and value-driven relationships.
2. Activities, Coaching, and Sales—Working Together
This plan doesn’t reward only activity or only results. It balances three critical levers:
For Sales Reps:
- Consistent, high-quality activity (prospecting, follow-ups, pipeline discipline)
- Driving new business
- Meeting or exceeding performance goals
For Sales Managers:
- Ensuring the team brings in enough new business
- Coaching and mentoring in the field
- Helping reps improve every month
- Driving the right activities and inspecting results
When each rep improves steadily, the team as a whole achieves its business development targets—creating momentum that benefits both the company and its customers.
3. Rewarding Top Performers—in a Big Way
In this model, top performers don’t just make a little more than their peers—they make drastically more.
Why? Because impact should equal reward.
Top reps are driving the most growth, taking on the toughest challenges, and setting the standard. They deserve to be compensated at a level that reflects that difference.
This gap also creates healthy motivation: reps either raise their game or rethink their fit.
4. How the Plan Works
At its core, the plan is simple and scalable:
- Reps are rewarded for doing the right activities, landing new customers, and closing business.
- Managers are compensated for coaching effectively and driving team growth.
- The company measures both leading indicators (activity, pipeline growth) and lagging indicators (sales results).
- Customers benefit from a consistent, value-driven sales experience.
While weights, thresholds, and payout structures are tailored to each business, the principle remains the same:
👉 Reward the behaviors that create the results you want.
Why This Works
- Clear Line of Sight: Everyone knows exactly what drives their pay.
- Balanced Metrics: Activities and coaching build momentum; results remain the driver.
- Massive Reward for Excellence: Top performers are paid significantly more.
- Customer-First Culture: Reps can’t hit their numbers without satisfied customers.
- Scalable Structure: The plan grows with the business.
A great compensation plan isn’t just about pay.
It’s about engineering alignment and motivation.
When reps, managers, the company, and customers all win, you create an environment where:
- Activity builds consistent pipeline growth
- Coaching develops stronger, more confident reps
- Sales numbers climb predictably
- Customers receive exceptional, value-driven service
- Top performers are massively rewarded—and the company grows
That’s the power of a Win–Win–Win–Win model.
Cheers,
Kyle Jager
