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Salespeople! We’ve got a new story for you: ”My company got acquired in December by a larger company. They kept us on our original comp plan for a few months but kept dangling all the money we'd be making if we switched over to theirs. Bragging about people in the company making $100k commission checks. We were required to sign a new compensation plan and lowered our salary (only by 5k, no biggie) which we eagerly did. This plan was to go into effect for the month of April. Now, 3 days before we're supposed to get said commission check, they're back pedaling and saying they aren't going to pay us that amount. The amount, which is based on the numbers and percentages they gave us, was SUBSTANTIALLY higher than we had gotten in the past. I'm talking tens of thousands more. Today management has announced they won't be paying us that and basically that's end of the discussion. I think they originally did their math incorrectly and didn't anticipate everyone making so much money on this plan. There will be yet another new comp plan for the month of May but we haven't received anything yet. With only 3 days of the month, how am I expected to continue to work when I have no idea what I'm going to get paid for work I've already done. In terms of legality, I'm thinking we're probably outta luck since there's a disclaimer in the plan that says they can change it at anytime. But has anyone else dealt with something like this? Morally, I think it's pretty bad and a breach of trust when you ask your sales team to hit numbers, they hit them and beyond, then not compensate accordingly.” What are your thoughts?

The struggles with inaccurate commission calculations affect not just sales reps, but all business units involved! 👥 Commission disputes take time to resolve and often lead to employees feeling mistreated. With Dolfin , you can easily prevent these issues from happening, and you’ll gain so much more confidence from your sales team through commission accuracy and transparency. Get in touch to learn more about how we’re helping companies modernize their sales compensation strategy to boost morale, performance, and revenue! 🐬

Have you considered what factors play a crucial role influencing sales compensation today?

As we reach the middle of this week, we wanted to share with you another sales commission story, walking us through the impact of comp plan on reps: ”When my company decided to expand overseas, I was the first and only hire. They promised to bring in two more employees and set up an office, but those promises never materialized. In my first year, the compensation plan seemed straightforward: 10% commission on Annual Contract Value (ACV) bookings. However, there was a catch—deals had to be at least three years long to get the full commission. If they were shorter, the commission was reduced. Things changed drastically in the second year. My quota more than doubled, but my commission was slashed to 4%, and it was now paid based on recognized revenue. This meant if I closed a deal halfway through the year, I’d only get half the commission then and the other half the next year. Worse, if I left the company, I’d forfeit all my commissions. By the third year, the situation got even more complicated. My quota increased again, and my commission dropped to 3%. There were now numerous buckets and minimum thresholds to meet, still based on recognized revenue. For example, if I closed a deal in June, I’d get 35% of the commission immediately, another 35% the following June, and the remaining 30% spread over the duration of the contract, which could be 3-5 years. Again, if I left the company, I wouldn’t receive any of this commission. To top it off, senior leadership started getting more involved in my deals. It felt like they were demoting my role since they knew the commission structure was no longer motivating. Despite my efforts, the commissions were disappointing—only $100k for hitting a target of $7 million in Total Contract Value (TCV) from new deals each year. Can someone explain what’s going on here? Is this fair, or is it diabolic? I’m not sure anymore. I just know that the commissions aren’t worth the stress and effort under these conditions.” What are your thoughts of this compensation plan? Let us know in the comments!

Oh that frustrating moment when you click in the excel formula and over 10 cells from different places are being used to calculate one thing!

🐬 Happy Friday! Here’s another story from a sales rep we found online: ”I’ve been working as a sales representative at a mid-sized tech company for the past few years. I wanted to check if I’m not crazy. I know many sales reps haven’t been able to hit their On-Target Earnings (OTE) in the last couple of years. Despite that, I’m absolutely crushing it in terms of new business revenue and year-over-year (YoY) growth, which is what I primarily get paid on. In 2023, I achieved a 536% YoY growth, and in the first quarter of 2024, I hit 275% YoY growth. I’m planning to do the same, if not more, this quarter. However, my compensation plan doesn’t let me hit my full OTE or surpass it. Thirty percent of my target is based on churn rate, and if it’s below a certain percentage, I lose out on 30% of my earnings for the quarter. This is frustrating because churn isn’t my responsibility, and I can’t control it. For example, I have already lost out on 30% in Q2, even though I easily met my target in Q1. Additionally, I don’t make full commission on all new business. Some new business only pays 80% commission, depending on where it’s sourced, which I think is unfair. I find this very demotivating because I’ve built my business to be sustainable and feel like management is playing me for a fool. Is this just part of the game, and are most leadership teams like this, or should I start looking for a new job?” What are your opinions? Let us know in the comments!  

Things move pretty fast in the world of sales. If you don’t stop and look around once in a while, you could miss out from a lot of things. 🚀 We’ve created a true redefiner for the way your sales team operates. Our product empowers salespeople by enhancing motivation, trust, and performance through commission transparency and accuracy 🌟 Get in touch to see how Dolfin can help you turn your sales compensation strategy into a revenue growth engine 🐬

Jack Welch inspired leaders worldwide with his visionary approach. Today, we take a quote from him on the power of effective compensation strategies. ✨ An effective compensation plan goes beyond paychecks, it's a strategic tool to attract, retain, and motivate top talent. 🧲 By aligning compensation with your company’s goals and a culture of accountability and achievement, you motivate your employees to push your business forward. Ready to attract and retain top talent? Let's talk!

There's nothing worse than finding out your commission was miscalculated and then waiting forever for corrections. Take back your time and ensure accurate commission calculations with Dolfin ! 💼✨