SALES RECRUITMENT, SALES RECRUITERS & RECRUITMENT AGENCIES
Sales Compensation Plan Definitions (Sample Text)
Accelerator
An accelerator increases payment for attainment over 100%. Commission rates and quota rates move to an accelerated rate when the Participant achieves the annual quota. Sometimes people use this term like ramped rates and would qualify the idea of the rate to be paid over quota in another way such as: "Over-quota accelerator".
Account, Customer or Partner
An entity that buys from or may buy from the company.
Base Salary
The participant's base salary is a fixed amount that is determined by guidelines provided by the Human Resources department, and according to factors such as the competitive market, qualifications for the position, and past performance. The base salary is paid in semi-monthly installments on the 15th and the last day of every month. Base salaries are intended to compensate a participant for their responsibilities which may include depending on your position, but are not limited to, servicing accounts, information management, monthly reporting, order administration, training, attendance at conferences and other required meetings.
Bonus
A bonus is an opportunity to earn money for achieving specific results. Bonus opportunities are defined in the plan documentation.
Cancellations
Orders that are cancelled are considered not earned and any commission or bonus payments made will be recovered. See Overpayment and Recovery. Cancellations are posted in the period in which they occur and processed as negative transactions.
Commission
Commission is variable pay tied to sales revenue, unit sales, profit or some other volume-based metric.
Discounting
All discounting must be approved by the Sales Manager.
Eligibility
Only those employees who are classified as a participant in a Plan and who have signed this Plan form are eligible to participate in the Plan. All participants must comply with all terms and conditions outlined in the plan and with general employment practices and policies of the company. They are also responsible for selling or supporting only authorized products and services in their assigned territory.
Minimum Hours Per Week
Regular employees scheduled to work 40 or more hours per week are eligible for this Plan.
Mix
The relationship of the elements in the compensation plan expressed as a percent. It may be salary and incentive relative to Target Total Compensation or commission and bonus relative to Target Incentive Compensation.
New Customer
A customer is considered to be new when the customer has not done business in the past with the Company and there are no contingencies or contract terms to prevent the company from being able to recognize revenue in conjunction with company policies and related accounting standards.
Presidents Club
The participant may be asked to be a member of the "President's Club" when he or she achieves 110% of their targets. Members of the President's Club are eligible to participate in special recognition events.
Quota
Quota is the expected level of attainment assigned to a participant for the year. Occasionally it is necessary to change quota. Quota changes are effective from the point of change forward. Quota changes are effective for the full month. There will be no partial month quota changes. All future commission and bonuses earned will be calculated based on the new revised quota. Changes to quotas will be made in writing to the Participant.
Recognizable Contract
A signed software license contract is considered recognizable when no contingencies or contract terms prevent the company from being able to recognize revenue in conjunction with company policies and related accounting standards.
Split Claim Process
If responsibility is shared between two or more Participants on a specific sale, sales booking credit splits will be determined by the Sales Manger. Split claim information needs to include the customer name and amount to be split. Splits must be identified on the opportunity in the CRM system to be counted.