Sales Compensation Strategy Builder
Build a data-backed compensation plan for new sales hires in 2 minutes. Get recommendations for quota adjustments, draws, and optimal onboarding timelines.
Survey Insights
From 114 revenue leaders
Average onboarding period across 114 companies surveyed
Of companies offer guaranteed commissions to new hires
Use quota adjustments as their primary compensation method
6 months
Average onboarding period across 114 companies surveyed
40%
Of companies offer guaranteed commissions to new hires
30%
Use quota adjustments as their primary compensation method
30%
Allow accelerators during the onboarding period
Ready to Build Your Strategy?
Answer 3 simple questions about your sales team and get a data-backed compensation recommendation.
How 100+ Companies Structure Compensation Plans
Based on survey data from 114 revenue leaders across industries
Guaranteed Commissions
40% of organizations provide some form of guaranteed commissions to new sales hires:
Advances paid without clawbacks
Clawed back if targets are not met
Flat-rate bonuses and other forms
Quota Adjustments by Team Size
Compensation strategies vary significantly based on team size:
Small Teams (1-10)
20% use higher commission rates with lower quotas
Mid-sized (11-50)
33% prefer recoverable draw models
Large Teams (51-100)
100% use non-recoverable draws
Enterprise (101+)
100% implement quota reduction strategies
Progressive Quota Models
The most common approaches for quota progression:
Standard Model
0% → 50% → 75% → 100% over 3-4 months
Quarterly Step-ups
40% → 80% → 100% fixed increases each quarter
Extended (Long Cycles)
Full year progression for 6+ month sales cycles
Note: Less than 3% of companies use activity-based compensation (calls, demos) during this period.
Insights From 114 Revenue Leaders
We surveyed revenue leaders from 114 organizations across industries to understand the most common strategies, payout structures, and onboarding time frames. The goal: help you structure plans that accelerate performance, boost retention, and drive long-term growth.
The right onboarding structure supports sellers as they build pipeline and aligns their efforts with your company's key objectives from day one. Because what's not talked about enough? Compensation plans for new reps.
114
Organizations surveyed
6 mo
Average onboarding period
3-24
Month range observed
40%
Offer guaranteed pay
Survey Participant Breakdown
Real Compensation Plan Examples
See how companies of different sizes structure their onboarding compensation
Pipeline-First Approach
New AEs carry a quota for pipeline generation in their first 3 months to focus on building pipeline instead of closing.
- • Q2: 33% of full quota
- • Q3: 66% of full quota
- • Q4: Full quota + accelerators unlocked
Reduced Quota + Bonus
New sales reps receive a reduced quota and are paid a flat rate on that reduced quota.
- • 2.5% bonus if onboarding quota achieved
- • Accelerated payouts only on full quota
- • Not on reduced onboarding quota
Non-Recoverable Draw
Commissions paid out via non-recoverable draws in place of adjusted quotas.
- • Ability to earn accelerators while onboarding
- • No clawback risk for new hires
- • Provides financial safety net
High Commission + Draw
Prorated quota with a high commission rate in year 1.
- • Nonrecoverable draw (guarantee) for 3 months
- • Extended timeline matches sales cycle
- • High commission incentivizes performance
Monthly Quota Steps
Amend the quota goal for the first 3 months, which brings down annual goal.
- • Month 1: 25% of monthly goal
- • Month 2: 50% of monthly goal
- • Month 3: 75% of monthly goal
Get Your Custom Strategy
Answer 3 questions and get a data-backed recommendation tailored to your team.
How Easeworks Can Help
Beyond this free tool, our HR experts provide comprehensive support to design, implement, and optimize your sales compensation strategy.
Compensation Design
Custom compensation plan design aligned with your sales cycle, team size, and business goals.
Quota Modeling
Data-driven quota setting and adjustment strategies that balance performance with retention.
Compliance Review
Ensure your compensation plans comply with state and federal regulations.
Performance Analytics
Track and optimize your compensation plans with real-time performance data.
The Challenge With Onboarding Compensation
Research shows it takes reps an average of 3 to 6 months to fully understand how they're paid. That's valuable time lost to confusion—time that could be spent building pipeline and closing deals.
- Build and adjust plans that ensure reps understand how, when, and what they're paid from day one
- Provide full transparency into earnings, including during the onboarding period
- Eliminate guesswork while speeding up time to productivity
Key Trends From The Research
Important patterns and insights from 114 revenue leaders
Onboarding Periods Vary But Average 6 Months
While structures range between 3 and 24 months, the average period is 6 months across all organizations surveyed. However, companies with longer sales cycles (6+ months) tend to extend this to 12-18 months.
Key Insight
Match your onboarding timeline to your sales cycle length, not industry averages.
40% Offer Guaranteed Commissions
Nearly 40% of organizations provide some form of guaranteed commissions to new sales hires:
- 20% use non-recoverable draws (no clawbacks)
- 10% use recoverable draws (clawed back if targets missed)
- 10% offer other forms like flat-rate bonuses
Quota Adjustments Lead The Way
About 30% of companies compensate new reps through reduced quotas or higher commission rates, allowing them to focus on building pipeline without full quota pressure.
Accelerators & Activity-Based Pay
While 70% of companies delay accelerators until full quota, 30% allow reps to earn accelerators during onboarding.
Surprising Finding
Less than 3% of companies reward based on activities such as calls made or demos booked—suggesting a strong preference for commission-based earnings on closed revenue.