Hunters, Farmers and Comp Plan DesignErik Charles | Senior Manager, Product Marketing Xactly Corporation

Will Wiegler | Chief Marketing OfficerThe TAS Group

© The TAS Group 2012

Introductions

Erik Charles

Senior Manager, Product Marketing

Xactly Corporation

Will Wiegler

Chief Marketing Officer

The TAS Group

© The TAS Group 2012

Poll #1

What is the ratio of Hunters to Farmers in your sales organization?

A: 1 : 1 Hunter

B: 1 : 2-3 Hunters

C: 1 : 4+ Hunters

© The TAS Group 2012

Poll #2

What percentage of your budget is used for sales performance incentives?

A: 0%

B: 1% - 3%

C: 3% - 5%

D: 5% - 8%

E: 8% +

Hunters, Farmers, and Comp Plan

Design

© The TAS Group 2012#salescomp

Connecting the Pieces

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What Should You Measure?

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Setting Quota So You Don’t Wipeout

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Timing Your Cash Flow

• You will see spikes in revenue for whatever the measurement period is.

• Combine monthly and quarterly goals with the annual numbers to help smooth the revenue cycle.

12

34

56

78

910

1112

0%

5%

10%

15%

20%

25%

© The TAS Group 2012#salescomp

Thoughts on Rewards

• Make it immediate • Majority of variable

should be individual• Team bonuses can be

accelerators or contests

• Awards – President’s Club

• Weekend escapes• Gift certificates

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When Should You Pay?

When the deal is won?

Once the client is “live”?

After accounting recognizes the revenue?

When cash is in hand?

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First You Hunt Revenue and Growth

Are they hungry? Are you ready for them?Do you have a plan for them to hit the ground?

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How Much Pay at Risk?

Flat Salary3%

1% -

15%10%

16% - 25%17%

26% - 40%23%

41% - 60%30%

>60%16%

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Accelerating Uphill?

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Quick Steps For Paying The Hunter

Conduct a salary survey to set target pay.

How much of the target pay should be variable?

Pick metrics to base rewards on that meet corporate goals, focusing on the most important one.

Check out how much you’ll spend on sales if everyone makes quota.

© The TAS Group 2012#salescomp

Things are Getting Bigger – Need a Captain

Have you promoted your best rep out of the field or have you truly found a sales leader?

© The TAS Group 2012#salescomp

How Much Can You Get From The Territory?

Do they have the right personality?What is the opportunity? and

How much can the Farmer influence?

© The TAS Group 2012#salescomp

Now Its Time to Get Your Hunters Focused

People not afraid of the phone.

Will this be a stepping-stone towards becoming an account executive?

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How Complex is Your Product Line?

Combining knowledge and presence

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Final Thoughts

What are you trying to achieve?

Who is going to sell for you?

How much leverage and upside?

What are you going to measure?

When will you write the check?

© The TAS Group 2012#salescomp

Questions …

225 W. Santa Clara St., Suite 1200San Jose, CA 95113

T (949) 439-3555

www.xactlycorp.com

Erik W. Charles

echarles@xactlycorp.com

@erikchaz on Twitter

© The TAS Group 2012

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© The TAS Group 2012

www.thetasgroup.com• US 866.570.3836

• UK 01189 253 251

• International +353 1 631 6140

• marketing@thetasgroup.com

• Twitter: @thetasgroup

Where You Can Find Us

www.xactlycorp.com• US 866.469.2285 | 408.977.3132

• Twitter: @xactlycorp

• Blog: www.xactlycorp.com/media/category/blog/

Hunters, Farmers and Comp Plan DesignErik Charles | Senior Manager, Product Marketing Xactly Corporation

Will Wiegler | Chief Marketing OfficerThe TAS Group