ElasticFlow
AI SkillDraft Comp PlanSales

When you're drafting your first sales comp plan, /sales-compensation sets OTE split, ramp, and retention kickers that align reps with renewals. — Claude Skill

A Claude Skill for Claude Code by Refound — run /sales-compensation in Claude·Updated

Compatible withChatGPT·Claude·Gemini·OpenClaw

Design sales comp that rewards bookings, retention, and expansion.

  • OTE structure: Jason Lemkin's 50/50 base-variable split as baseline, adjusted for deal cycle and ACV
  • Retention kickers: Sahil Mansuri's model that rewards reps for 12-month renewal, not just initial bookings
  • Ramp design: 3-6 month draws for SMB motions, 6-12 months for enterprise cycles
  • Gaming prevention: simple plan structures so reps can predict their paycheck in their head
  • Churn adjustment: clawback rules for customers that don't renew in the first year

Who this is for

VP Sales

Design comp plans that drive the behavior you want without accidentally paying for the behavior you don't

See skills for this role
RevOps

Model quota attainment and accelerator curves before locking in the plan

See skills for this role
Founder

Build your first comp plan before hiring the sales team and avoid expensive resets later

See skills for this role

What it does

First comp plan for your first 2 AEs

You're hiring 2 AEs and need a plan that won't get rewritten in 6 months. /sales-compensation starts from Jason Lemkin's 50/50 OTE baseline, adds a ramp draw, and bakes in Sahil Mansuri's retention kicker so reps care about 12-month renewal, not just the commission check.

Your reps are signing churny deals

First-year churn is 25% and reps keep closing logos that never renew. /sales-compensation redesigns the plan to pay 60% at close and 40% at 12-month renewal, plus a clawback rule that aligns the rep's paycheck with customer outcomes.

New hires aren't ramping

Your first AE missed quota for 2 quarters because ramp expectations were unrealistic. /sales-compensation rewrites the ramp schedule with a guaranteed draw, graduated quota (25/50/75/100% over months 1-4), and explicit milestones so the rep stays cash-safe while learning the motion.

Plan is too complex and reps game it

Your current plan has 6 accelerators, 3 SPIFs, and reps optimize around it. /sales-compensation simplifies it to a plan a rep can calculate during a pipeline review, then adds one strategic accelerator tied to your top business priority.

How it works

1

You share your business model: ACV, sales cycle, current plan, ramp problems, churn rate, and what behavior you want

2

The skill starts from the 50/50 Lemkin baseline and adjusts base, variable, and accelerators for your specific motion

3

Layer in Sahil Mansuri's retention kickers and clawbacks so reps are paid for customers who actually stay

4

Design the ramp schedule: draws, graduated quota, and quarter-by-quarter milestones for new hires

5

Get the full draft plan: base, variable, commission rate, accelerators, SPIFs, ramp, clawbacks, plus a 1-page rep-facing summary

Example

Your inputs
Role: AE, first 2 hires
ACV: 30K
Sales cycle: 90 days
Motion: outbound + warm intros, SMB to mid-market
Quota target: 600K/year per rep
First-year churn: 22% (problem)
Cash runway: 14 months
30 minutes later
Plan summary
OTE: 180K (90K base + 90K variable)
Commission rate: 15% of ACV
Quota: 600K annual, 150K per quarter after ramp
Accelerator: 1.5x on commission above 100% attainment
Retention kicker: +5% commission paid at month 12 if account renews
Retention alignment (Sahil Mansuri)
60% of commission paid at close (9% of ACV).
40% paid at month 12 if customer renews (6% of ACV).
Clawback: if customer churns before month 6, commission is reversed.
Result: a rep who closes a 30K deal earns 2,700 at close and 1,800 at renewal, for 4,500 total. A churny deal pays zero.
Ramp schedule
Month 1: 100% base + 0% quota (learning)
Month 2: 100% base + 25% quota
Month 3: 100% base + 50% quota
Month 4: full quota
Guaranteed draw of 7.5K/month in months 1-3 against future commission.
Watch-outs
1. 15% is on the high end, trim to 12% if you need cash.
2. Keep the plan at one page. If a rep can't explain it back in 60 seconds, it's too complex.
3. Revisit after 2 quarters with actual churn data. If retention kicker isn't changing deal selection, raise the split to 50/50.

Metrics this improves

Forecast Accuracy
Quota discipline and plan clarity sharpen forecast accuracy
Sales
Pipeline Coverage
Compensation tied to coverage keeps reps building pipeline ahead
Sales
Close Rate
Clean comp plans reward the behaviors that close deals
Sales

Works with

Google Sheets
manual

Model quota, OTE, accelerators, and spiffs

Salesforce
manual

Source booking and quota attainment data for comp design

Notion
manual

Document the comp plan, rationale, and FAQ for the team

View on GitHub

Sales Compensation

Help the user design effective sales compensation plans using frameworks from 2 product leaders.

How to Help

When the user asks for help with sales compensation:

  1. Understand the business model - Ask about their sales cycle, ACV, and customer retention patterns
  2. Identify current problems - Determine if there are misaligned incentives or retention issues
  3. Design aligned incentives - Help them create comp plans that drive the right behaviors
  4. Consider ramp and quotas - Guide them on structuring pay for new hires

Core Principles

The standard 50/50 split is a starting point

Jason M Lemkin: "It's usually 50/50, right? 50% base, 50% bonus for a sales rep." The standard OTE structure is 50% base salary and 50% variable commission. This is a common baseline for quota-carrying roles.

Traditional comp plans are misaligned

Sahil Mansuri: "Sales comp plans are stuck in the stone ages... What we haven't done is built a modern technical sales compensation plan that actually aligns the needs and incentives of the business, the customer and the rep." Consider designing comp that rewards long-term retention and net dollar retention, not just closed deals.

Align incentives with customer success

If your business depends on customer retention, comp plans should include components tied to customer outcomes, not just initial bookings. Reps who close churny deals should earn less than those who close sticky customers.

Ramp periods matter

New sales hires need ramp periods with guaranteed draws or reduced quotas while they learn the product and market. Typical ramps are 3-6 months for SMB and 6-12 months for enterprise.

Simplicity drives behavior

Complex comp plans with many variables lead to confusion and gaming. Simple plans where reps understand exactly what actions increase their pay are more effective.

Questions to Help Users

  • "What percentage of new deals churn within the first year? Does your comp plan account for this?"
  • "Is your comp plan so complex that reps don't know how to maximize their earnings?"
  • "What behaviors are you trying to incentivize? Does your comp plan actually reward those behaviors?"
  • "How long is your sales cycle, and how does that affect cash flow for reps?"
  • "What's your ramp structure for new hires? Is it working?"

Common Mistakes to Flag

  • Incentivizing only bookings - Paying for closed deals without considering customer quality or retention
  • Over-complicated plans - Too many variables that confuse reps and enable gaming
  • No ramp protection - Expecting new hires to hit full quota immediately
  • Misaligned accelerators - Bonuses that kick in at the wrong thresholds
  • Ignoring churn - Comp plans that don't account for customers who don't renew

Deep Dive

For all 2 insights from 2 guests, see references/guest-insights.md

Related Skills

  • sales-qualification
  • product-led-sales
  • pricing-strategy

Reference documents

Sales Compensation Design - All Guest Insights

2 guests, 2 mentions

Jason M Lemkin

Jason M Lemkin

"It's usually 50/50, right? 50% base, 50% bonus for a sales rep."

Insight: The guest provides specific tactical advice on OTE ratios, base/bonus splits, and ramping strategies for early sales hires.

Sahil Mansuri

Sahil Mansuri

"Sales comp plans are stuck in the stone ages... What we haven't done is built a modern technical sales compensation plan that actually aligns the needs and incentives of the business, the customer and the rep."

Insight: The guest provides a deep, technical critique of the standard 50-50 OTE split and offers a specific framework for aligning sales pay with long-term retention and net dollar retention.