How satisfied are you with the sales compensation plan at Pluralsight?

Question

Accepted Answer

Not very. The commission plan is designed in such a way that it benefits the company significantly.

Things change fast at Pluralsight, and this might have changed since I left in the summer of 2022.

Sales is compensated on a yearly quota which is weighted slightly towards the end of the year. If you are under 50% quota attainment there is a significant drop in commission payouts, which is compensated by a higher rate of commission when you are above 50%.

Commissions are paid the month after each quarter.

You are expected to book a certain percentage of your yearly quota each quarter (15% Q1, 25% Q2, 25% Q3, 35% Q4).

Because the commission cliff is based on the yearly quota achievement, the design is to minimize payouts during the first half of the year.

If you are selling perfectly to plan there is almost no commission paid in April (only 15% quota attainment from Q1), there is almost no commission paid in July (only 40% total quota attainment from Q1 and Q2, still under the 50% cliff), decent commission payout in October (65% total quota attainment, so only 3/5th of your sales from Q3 are generating any substantial commission), and a very significant bonus in January the year after.

If you work an entire year, more than 50% of your entire year's compensation will be paid out in January next year.

This is particularly noticeable in your first year selling for Pluralsight (expect to manage on pretty much only your base pay during the majority of the year) and in your last year. If you don't stay until the end of Q4 you forfeit a significant share of your commission for the entire year.

Also, your OTE is generated through a unique percentage of commissions per sale. That means if you hit 100% quota attainment while on ramp (and therefore reduced quota), your compensation will not match what you might expect from your OTE.

Among the SaaS companies I've sold for, Pluralsight had the least transparent comp plan.

Answer

I would rate the sales compensation plan at Pluralsight as "good," but it's regrettable that the company didn't adhere to the rules of engagement.

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Anonymous Q&A

How satisfied are you with the sales compensation plan at Pluralsight?