CHOOSING THE RIGHT SALES COMP PLAN FOR YOUR FIRST ENTERPRISE REPS

Summary from the TLDR Founders newsletter

When early-stage startups are chasing large enterprise deals that can make or break a sales rep's year, choosing the right compensation plan is critical. Three viable options to consider: 1) MBO plans based on leading indicators, 2) higher base salaries with lower commissions, and 3) guaranteed comp with a true-up. The best choice depends on the experience level of the sales reps and the company's cash flow situation.