B2B Sales SDR Quota & Commission Modeler
Model Sales Development Representative (SDR) quota targets, variables, base commission rates, and accelerator payout thresholds.
demos
$90,800 OTE
Commission: $40,800
| Compensation Ledger Tier | Calculated Value |
|---|---|
| On-Target Earnings (OTE Standard Target) | $80,000.00 / yr |
| Base Commission per Demo Booked | $166.67 / demo |
| Base Variable Commission Earned (Monthly) | $2,500.00 |
| Accelerator Bonus Commission Earned | $900.00 |
| Total Monthly Compensation Pool | $7,566.67 |
The Economics of B2B Sales Compensation
For sales operations managers, sales directors, and HR business partners, structuring compensation packages represents a key tool to attract and retain top performers. In the B2B tech space, Sales Development Representatives (SDRs) are typically compensated using an On-Target Earnings (OTE) plan. OTE packages divide pay into flat base salaries and variable commission pools tied directly to meeting quotas. Our B2B Sales SDR Quota & Commission Modeler helps model various commission plans.
Key Sales Compensation Components
To design a balanced sales quota plan, operations teams analyze several indicators:
- Annual Base Salary: The flat, non-variable monthly salary paid to the representative.
- On-Target Variable (OTV): The commission pool paid out if the representative hits exactly 100% of their target quota.
- Quota Attainment Rate: The percentage of target quota achieved (e.g. booking 18 demos against a quota of 15 booked demos yields 120% attainment).
- Commission Accelerators: A multiplier (typically 1.5x to 3.0x) applied to commission rates for booked meetings that exceed 100% of the target quota, incentivizing over-performance.
Understanding the Benefits of Commission Accelerators
Commission accelerators are highly effective at encouraging reps to push beyond their quota targets. Since base salaries are flat overheads, every deal closed by a high performer beyond quota represents highly profitable revenue, allowing companies to pay premium multipliers without diluting margins.
Best Practices to Structure SDR Compensation
- Set Realistic Quotas: At least 60% of the sales team should hit their monthly quota. Setting unattainable targets results in high representative turn and low team morale.
- Keep Plans Transparent: Representatives should be able to calculate their commissions in real-time. Complex commission criteria lead to calculation errors and reps feeling disengaged.