3. Budgets
the budget available for sales compensation will also influence how ttc is calculated. More available money might mean that you pay higher base salaries and your plans include less variable, performance-based pay (commission and bonuses). If you’re a newer organization with a tighter budget, you might rely more on performance-based pay to ensure you’re not at risk of overspending.
sales goals and sales compensation plans aren’t created in a chinese student data vacuum; they inform and influence one another. Compensation targets incentivize reps to hit revenue goals and revenue goals allow your company to pay a certain amount in compensation.
5. Employee mix
the makeup and tenure of your sales employees can also affect how much weight certain factors carry in the ttc equation. For example, the target compensation for a brand-new sales rep might primarily come from their base salary, because you’ve given them a very low quota.