Creating a high-impact incentive compensation plan is both an art and a science. Organizations must strike the right balance between structure and motivation to drive peak sales performance. A strategic mix of role-based and stepped hierarchies can unlock greater revenue potential while keeping sales teams engaged. Let’s explore how leveraging both approaches can optimize your incentive plan.

Tailoring Incentives for Diverse Sales Roles

In organizations with multiple sales roles—account executives, business development reps, and solution consultants—a role-based hierarchy ensures that each role’s incentive plan aligns with its specific function. However, introducing a stepped hierarchy for leadership roles helps managers drive overall team success.

For instance, an account executive may have an individual quota-based incentive, while their manager earns a tiered bonus based on the entire team’s performance (e.g., 80%, 100%, and 120% of quota). This structure fosters a culture of coaching and team growth.

Balancing Enterprise and SMB Sales Strategies

Sales cycles and deal sizes vary between enterprise and SMB segments. A role-based structure provides distinct incentive plans suited to each, while a stepped hierarchy within each group rewards exceptional performance.

For example, SMB reps may earn a 10% commission up to quota and 15% beyond quota, driving continuous overachievement. Meanwhile, enterprise reps might receive a blended compensation model that rewards both closed deals and long-term relationship-building.

Driving Collaboration Through Cross-Selling

For companies reliant on teamwork across sales and customer success teams, a hybrid incentive model is essential. A role-based structure defines base incentives, while stepped incentives encourage collaborative efforts.

Imagine a scenario where a customer success team earns a baseline incentive for retention but also receives an incremental bonus tied to the account executive’s upsell success. This ensures seamless collaboration and aligned revenue goals.

Final Thoughts

By smartly combining role-based and stepped hierarchies, organizations can create a dynamic and results-driven incentive plan. This approach ensures fair compensation, motivates overperformance, and fosters team synergy, ultimately fueling sustained revenue growth. Ready to elevate your incentive strategy? Start blending these models today!