Page 39 - PowerPoint Presentation

Sales Compensation – Bonus Model

Sales Representative OTE Commission Plan

Participant: John Q. Sales Yearly Base: $50,000 • Want to have an
Title: Territory Sales Rep Yearly OTE: $100,000 integrated sales force
Term: 12 Yearly Quota: $500,000 (Gross Margin Target)
Effective Date: January 1, 2014 Cloud Target • Are just getting started
$50,000 (Gross Margin Target) with XaaS and want a
Revision Date: December 31, 2014 motivator in place for all
sales reps
OTE Summary: On-target Earnings 100% $ 100,000
Base 50% $ 50,000 • Have a need to drive
50% $ 50,000 current revenue, yet
Variable need to get the attention
Variable Payout 80% $ 40,000 of the sales team to
20% $ 10,000 drive some level of
Commission XaaS/Cloud revenue
Cloud Sales Bonus

Quota $ 500,000

Territory Commission: $ 40,000

Quota Floor (%) Tier 1 Tier 2 Tier 2
Quota Ceiling (%) 0% 100% 125%
125% No Cap
100%

Quota Floor ($) 0 500,000 625,000
Quota Ceiling ($) 500,000 625,000 No Cap
Commission Rate
8.00% 12.00% 16.00%

Cloud Sales Bonus $ 10,000 Bonus Structure
FY Period
Quota Q1 Q2 Q3 Q4
12,500
Bonus @ 100% Achieve $ 2,500 $ 12,500 $ 12,500 $ 12,500 % of Bonus Paid
Bonus @ 90% Achieve $ 1,250 $ $
Bonus @ 85% Achieve $ 625 $ 2,500 $ 2,500 $ 2,500 100%
$ $ $
1,250 $ 1,250 1,250 50%

625 $ 625 625 25%