Want to Make More Money? How to Ask For a New Sales Commission Plan

As a sales professional, your income depends on the strength of your commission plan. But a 2022 survey by SalesIntel found that only 35% of reps are satisfied with their current compensation structure. If you‘re in the majority who feel your commission rates aren‘t cutting it, it may be time to ask for a new plan.

Negotiating changes to your sales comp is often an intimidating prospect though. Push too hard and you could damage your relationship with your manager. Make a weak case and your request may just get brushed aside.

The key is to approach the conversation strategically, armed with data and solutions. Follow these steps to build a compelling argument for the commission rates you deserve.

Diagnose Where Your Current Plan Falls Short

Start by clarifying what precisely frustrates you about your existing compensation plan. The better you articulate the core issues, the stronger your case for change will be. Common pain points include:

• Lack of motivating accelerators: Your commissions don‘t meaningfully increase when you beat your quota, reducing incentive to keep selling past your goal.

• Unfair quota to commission ratio: Quotas keep rising each year but commission percentages don‘t increase proportionately, making it harder to earn.

• Misaligned incentives: Comp plan doesn‘t reward the right behaviors, like selling new product lines or expanding into target markets.

• Limited earnings potential: Commission rates are capped, so there‘s a ceiling to your income even if you land a monster deal.

A 2021 study by Xactly found that 83% of companies still manage comp plans in spreadsheets, rather than using automated software. This lack of administrative rigor and real-time visibility often allows plans to become quickly misaligned with actual sales workflows.

Document Your Performance and Payouts

With your frustrations clarified, gather the data to illustrate them undeniably. Pull reports on your quarterly and year-over-year sales performance. Compare your revenue, quota attainment, and deal size numbers side-by-side with your actual gross commissions.

Some telling metrics to include:

• YoY revenue growth vs. YoY commission increases
• Percentage of company revenue you generate vs. percentage of total commissions you earn
• Average discount on closed deals vs. commission rates at different discount levels
• Number of calls/emails per closed deal vs. payout per closed deal

Make the case that your sales performance is outpacing your compensation in clear terms. For example, if your sales increased 15% last quarter, but commissions only went up 5%, highlight that disparity.

Collect this data in a clear, easy-to-read format like a spreadsheet. Showing the gulf between your results and rewards in black and white makes it tougher to deny the need for change.

Benchmark Your Earnings Against Market Norms

On top of comparing your performance to your pay, research average commission rates for your industry, tenure, and region. Sites like Glassdoor and PayScale provide self-reported earnings data you can use as benchmarks.

If you discover your earnings fall below market rates, that‘s another strong data point to include in your case. It also arms you with info to push back on lowball offers if your company claims limited budget for comp changes.

Focus on the Company‘s Success, Not Just Your Own

As you prepare for conversations with your manager, remember to frame your argument around how a new comp plan will benefit the whole company, not just your own wallet. Yes, you want to boost your earnings, but explain how that will come through driving more top-line revenue and aligning with strategic priorities.

Some points to emphasize:

• Implementing SPIFs (sales performance incentive funds) for new product lines will encourage reps to gain more training and experience selling them.

• Raising commissions on multi-year deals will motivate reps to build longer-term relationships and increase customer lifetime value.

• Paying a higher base salary will help retain top sales talent and reduce the costs of turnover and ramping new hires.

Ultimately your manager cares more about company success metrics than your individual take-home pay. Tie your compensation to those bigger-picture goals to get leaders on board.

Come Armed With Reasonable Solutions

Once you‘ve defined the issues and collected the data to support your argument, brainstorm some new comp plan options to present. The more specifics you propose, the easier it will be for your manager to take action.

Some potential elements to suggest:

• Tiered commission rates that increase with quota attainment or deal size
• Multipliers for strategic sales behaviors, like cross-selling or reducing discounts
• Uncapped commissions to incentivize overperformance
• Higher base salary complemented by a more modest commission rate

To visually illustrate how different comp plan structures impact rep earnings and selling behaviors, see the table below:

Plan Type	Description	Pros	Cons
Commission Only	Earnings entirely dependent on sales results	High earning potential for top performers	High pressure, income volatility
Base Salary + Commission	Guaranteed base pay with added commission	Provides income stability and upside	Can reduce urgency and hunger
Tiered Commission Rates	Rate increases with higher quota attainment	Motivates overperformance	Requires more tracking and admin
Uncapped Commission	No upper limit on commissions earned	Sky‘s the limit for earnings	Exposes company to large payouts

Along with your suggestions, recommend tools and tactics to smooth implementation. Platforms like QuotaPath and Spiff can automate commission tracking and payouts. Outline a realistic timeline for designing, communicating, and rolling out comp changes.

Suggesting solutions shows you‘re committed to collaborating with management, not just complaining. It positions you as a strategic thinker who does your homework.

Roleplay the Conversation

Before bringing your proposal to your manager, do a few practice runs of how you expect the conversation to unfold. Jot down likely questions, objections, or hesitations they may raise so you can thoughtfully respond.

Some FAQs to prepare for:

• Why should we overhaul the whole comp plan vs. just making one-off exceptions?
• Isn‘t it your responsibility to perform well, regardless of your commission rate?
• How do we pay for higher commissions without hurting profitability?
• Why should we risk changing a familiar comp plan?

Beyond the financial aspects, also consider the interpersonal dynamics at play. If you have a tense relationship with your manager, you may need to work extra hard to strike a collaborative tone.

Anticipate your own potential emotional responses too, and plan to stay calm and professional. Losing your cool will only undermine your credibility. Remember – this is a negotiation, not an ultimatum.

Make Your Case, But Manage Your Expectations

Once you‘ve laid the groundwork, schedule a meeting with your manager to present your proposal. Share your concerns plainly, but constructively. Ground your argument in the objective data and solutions you‘ve prepared.

For example:
"I‘m excited by the challenge of bringing in net new logos, but it takes me twice as many calls to close those deals. Could we look at adding an accelerator for new customer wins so I‘m better motivated to keep hunting?"

While you may hope for immediate agreement, remember that comp plan changes are complex and involve multiple stakeholders. Your manager will likely need to get approval and budget from finance, operations, and senior leadership.

Stay open to counteroffers and compromises. Perhaps they can‘t fully meet your proposed commission rates but can bump up your base salary. Maybe they can‘t implement your new plan company-wide but can pilot it with a handful of reps.

Flexibility and patience boost your odds of getting to yes. A "no" now doesn‘t mean "no" forever.

Keep Pushing With Performance

If your manager doesn‘t immediately green light your suggested comp changes, don‘t despair or disengage. In fact, use it as motivational fuel to perform even better and strengthen your case.

Crush your quota, meticulously track your sales metrics, and keep notes on how the existing plan constrains your performance. The more indispensable you make yourself, the harder it will be to deny you the commission rates you deserve.

According to sales coach Lisa Leitch, "The best time to ask for better comp is when you are consistently overperforming and have the results to back it up. It‘s a lot harder for companies to refuse their top sellers."

You Are Your Best Advocate

Far too many salespeople simply accept the comp plan they‘re given as an immutable fact. But those who proactively campaign for their worth are often pleasantly surprised by the results.

Of course, a single conversation likely won‘t revolutionize your pay structure overnight. But planting the seed and demonstrating your value can lead to real changes over time.

If your current company ultimately can‘t meet your compensation needs, you‘ll be better positioned to negotiate with a new employer. Knowing your worth and building a bulletproof case for it is a valuable career skill.

So don‘t just settle for a subpar sales commission plan. Advocate for an incentive structure that rewards your hard work and aligns with your financial goals. With compelling data, collaborative solutions, and dogged persistence, you can get closer to the comp plan of your dreams.