SALES TEAM
COMP PLAN
CHEAT SHEET
SALES TEAM COMP PLAN
CHEAT SHEET
MY PROMISE
TO YOU:
By the time you’ve finished watching
the Masterclass and reading this cheat
sheet, you’ll be able to choose the
best “win-win” comp plan for your
business’s sales team… TODAY.
Grant Cardone
Founder & CEO
©2024 Cardone Training Technologies Inc. All Rights Reserved. 2
SALES TEAM COMP PLAN
CHEAT SHEET
CONTENTS
#1: Set Your Targets .......................................................................................................... 4
#2: Choose Your Comp Plan Structure ..................................................................... 10
#3: Track and Review Your Numbers ........................................................................ 12
TIP
Have you watched your Sales Team Comp Masterclass yet?
Watch the Sales Team Comp Masterclass here.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 3
#1.
SET YOUR
TARGETS
©2024 Cardone Training Technologies Inc. All Rights Reserved. 4
SALES TEAM COMP PLAN CHEAT SHEET
#1: SET YOUR TARGETS
To structure your sales team’s comp plan correctly, you need to set
some key targets for your business.
The most important target is your business’s annual revenue.
How much money do you want your business to make?
Now that you’ve decided this, you’re going to break that number
down into a daily total.
But before you make that calculation, figure out these 5 metrics
first:
©2024 Cardone Training Technologies Inc. All Rights Reserved. 5
SALES TEAM COMP PLAN CHEAT SHEET
#1: SET YOUR TARGETS
Now you’ve worked out these metrics, figure out your daily
revenue and transaction targets:
HOW TO CALCULATE
TARGET TYPE EXAMPLE
YOUR TARGET
#1: Weekly Target Annual Target/ 52 $20 million /52
Weeks Weeks = $384,615
#2: Daily Target Weekly Target/ 5 $384, 614 /5 =
Days $76,923
#3: Daily Daily Target/ $76,923 / $15,000 =
Transactions Average Sale Price 5.13 Transactions
Required per Unit
And now that you’ve calculated your targets, figure out your daily
activities required to reach your targets. Once you’ve done this,
you’ll know how many salespeople you need to hire, as well as how
much revenue each employee needs to generate per day.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 6
SALES TEAM COMP PLAN CHEAT SHEET
#1: SET YOUR TARGETS
HOW TO DETERMINE
ACTIVITY TYPE EXAMPLE
YOUR ACTIVITIES
#1: Demos Required Daily Transaction 5.13 Transactions /
Required / Close 20% = 25.65 Demos
Rate
#2: Appointments Demos Required/ 25.63 Demos / 50%
Required Appointment Show Show Rate = 51.3
Rate Appointments
#3: Number of Appointments 51.3 Appointments /
Contacts Required / Contact 20% Contact Rate =
to Appointment 256.5 Contacts
Rate
#4: Number of Calls Number of Contacts 256.5 Contacts /
Required Required / Call to 10% Call To Contact
Contact Rate = 2,565 Calls
With this example, assuming that a fully onboarded salesperson
should be making 200 calls per day after 90 days of training, you’ll
need to hire 13 salespeople to make 2,565 calls per day.
And each salesperson would need to make $5,917 per day in sales…
(Daily Sales Target of $76,923 / 13 salespeople = $5,917.15 sold per
salesperson per day).
This amounts to $29.58 earned for every call they make.
(Salesperson’s Daily Target $5,917 / 200 calls = $29.58 per call)
TIP
If you want to see a great example of how to set targets, company President
Jarrod Glandt demonstrates this in the Sales Comp Masterclass.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 7
#2.
CHOOSE YOUR
COMP PLAN
STRUCTURE
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SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
OK – now you know what targets you need to hit. You’ve figured
out where you’re going on your road map (your sales targets)
and you’ve plotted out which roads you need to take to get there
(those are your team’s call targets).
Next, you need to pick a vehicle that’s going to tear up the road…
And this is where your 10X Sales Comp Model comes in.
You need to choose the best possible compensation structure for
your sales team.
And here’s how you DEFINE what the best possible comp plan is:
The best comp model is one that drives maximum growth
for your business, while creating enough reward to attract
and retain the best sales talent, at a cost you’re able and
willing to pay.
What’s the maximum amount you’re willing to pay a
salesperson per unit sale?
This can be a tough question to answer. So here are a couple of
resources to help you choose the best comp models for your
business.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 9
SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
This prompt list gets you to ask yourself some important
questions about your current pay structure, so you can get clear
on what you’re doing now and why it could need to change:
PROMPT EXAMPLE
What’s your current sales $3,000/mo base + 10%
compensation plan? commissions on units sold.
What’s working with it? We have low turnover rate/lots
of salespeople stay.
What’s not working with it? I’m not seeing as much growth as
I’d like – maybe it’s too safe and
my sales team doesn’t feel very
motivated to do more.
What is the maximum amount I could go as high as 15%
you’re able to pay out on a commission.
sale?
What do you want from a rep 10 deals per month, average unit
to pay that out? sales price $5,000
©2024 Cardone Training Technologies Inc. All Rights Reserved. 10
SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
And now that you’ve asked yourself these important questions, this
Comp Plan Cheat sheet will help you choose from 6 possible comp
models:
COMP PLAN PROS CONS
Base plus flat • Great entry-level comp • The salary can be
plan. burdensome if your
bonus team doesn’t produce.
• Guaranteed base makes
You pay your it easier to recruit • This gives top
salespeople a people. producers lower overall
guaranteed base salary comp compared to a
• Provides security for commission-only plan,
each month, plus a “flat salespeople, leading to so it may not satisfy the
bonus” for each sale higher retention and best performers.
they make (e.g., $500 reduced turnover.
bonus per sale). • Without tiered unit
• Incentivizes sales performance
performance with targets, incentive to go
bonuses, driving higher above and beyond is
sales. low as it doesn’t affect
• Typically leads to a their per-unit payout.
lower percentage
payout of commission.
Table continues on next page
©2024 Cardone Training Technologies Inc. All Rights Reserved. 11
SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
Base plus • Easier to recruit • The salary can be
salespeople with this burdensome if your
commission % model, gives them team doesn’t produce.
some security.
You pay your • Without tiered unit
salespeople a • Their earning power sales performance
guaranteed base salary goes up because targets, incentive to go
their commission rate above and beyond is
each month, plus a
is proportionate to low as it doesn’t affect
percentage of for each
each sale, so they’re their per-unit payout.
sale they make (e.g., more motivated to sell
10% commission on bigger-ticket items for • More admin resources
every sale) you. required, need good
tracking and reporting.
• More predictable
management of cash
flow with stabilized
base salary and
percentage of sale.
Draw plus flat • Allows salespeople • With low sales
to start earning performance, a balance
bonus immediately, which of money owed to
can attract new hires the company by the
You provide a draw quickly. salesperson can lead
against future to lower morale and
commissions as a base, • It provides some ultimately turnover.
security for team
plus a flat bonus for
members while • You need to carefully
each sale they make
incentivizing sales, track and manage
(e.g., $500 bonus per driving initial draws and bonuses,
sale), which is deducted performance. which increases your
from the draw. admin.
• Allows for the company
to recover the draw
pay from future sales,
reducing overall
expense from sales
team comp.
Table continues on next page
©2024 Cardone Training Technologies Inc. All Rights Reserved. 12
SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
Draw plus • Guarantees minimum • With low sales
base amount for performance, a balance
commission % salespeople which is of money owed to
more attractive when the company by the
You provide a draw recruiting. salesperson can lead
against future to lower morale and
commissions as a base, • It provides some ultimately turnover.
security for team
plus a percentage
members while • You need to carefully
commission on each
incentivizing sales, track and manage
sale they make (e.g., driving initial draws and bonuses,
10% commission), performance. which increases your
deducted from the admin.
draw. • Allows for the company
to recover the draw • Without tiered unit
pay from future sales, sales performance
reducing overall targets, incentive to
expense from sales go above and beyond
team comp. is low as it doesn’t
affect their percentage
• Their earning power payout.
goes up because
their commission rate
is proportionate to
each sale, so they’re
more motivated to sell
bigger-ticket items for
you.
Table continues on next page
©2024 Cardone Training Technologies Inc. All Rights Reserved. 13
SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
Base/Draw • Guarantees minimum • Requires a deeper
base amount for dive into analytics and
plus laddered salespeople which is sales performance to
commission more attractive when determine bonuses,
recruiting. tier targets and max
You pay a base or draw payouts.
• It encourages
and a commission that continuous • Adds complexity to
increases. Higher sales improvement and accounting payouts as
yield higher commission higher performance, each rep requires an
rates (e.g., 5% for the which can benefit individual calculation
first $10K, 10% beyond). overall sales. based on their
performance.
• Incentivizes sales team
members to continue • Tier targets should be
to push for more sales set to inspire team;
throughout the month however, if targets are
as the more they not set appropriately –
produce, the higher being too out of reach
payout they will receive. – sales performance will
drop.
Straight • It’s easy, it’s clean. You • Taking into account the
pay only on production. time required to train,
Commission It’s easy for you to learn, and ramp up as a
forecast because the new hire selling a new
You compensate comp is directly linked product, performance
your salespeople to sales only. Because within the first 90 days
solely based on the of this, you can offer a is typically low which
percentage of sales higher commission. could result in low to no
they make (e.g., 20% compensation
• This offers the highest
commission on every earning potential out • Because of no
sale), without any base of any of the plans, guaranteed base, it can
salary or draw. because you can often be more difficult
afford to take more to recruit a salesperson
risk and pay out the into a straight
highest commission commission comp plan
percentage. So this is a
benefit you can sell to
recruit the best possible
talent.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 14
SALES TEAM COMP PLAN CHEAT SHEET
#2: CHOOSE YOUR COMP
#1: SET
PLAN
YOUR
STRUCTURE
TARGETS
It’s important to set your targets and consider your comp plan
options.
But don’t spend too long over-thinking it.
You’ll almost never get the comp plan right the first time.
The important thing is for you to simulate scenarios under each
option to determine which is the most advantageous for your
company, while giving you the best chance to recruit top talent.
You’ll probably have to test different ones and adapt to what’s
going on inside your business.
Inevitably, as your business changes, your comp plan will need to
as well. These conversations are never easy; however, they are an
unavoidable part of growing and scaling your sales team.
The most important part of finding the right compensation plan for
your team is understanding your numbers, your margin, and how
much a salesperson will need to achieve to produce an enticing
income level that can be marketed in your recruiting.
We’ll cover this now with Step #3…
TIP
If you want to see a great example of how to pick your comp plan, company
President Jarrod Glandt demonstrates this in the Sales Comp Masterclass.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 15
#3.
TRACK YOUR
NUMBERS
©2024 Cardone Training Technologies Inc. All Rights Reserved. 16
SALES TEAM COMP PLAN CHEAT SHEET
#3: TRACK
#1: SETYOUR
YOURNUMBERS
TARGETS
Once you’ve set your targets and picked your comp plan, you have
to measure and track your team’s performance. You can’t just set
and forget them.
Things are changing all the time. There’ll be circumstances inside
your business that could force you to make changes, such as staff
turnover rate, discontinued product lines, pricing changes from
vendors, and additional team members required to support their
department and production.
There’ll also be forces in your market outside of your control.
For example, rising rents could make it harder to attract good
talent to your area. So you may have to frontload your sales team’s
comp for their first 90 days in the business to incentivize them to
work with you.
To stay one step ahead in the game, you may need to change your
comp plan if you’re not hitting your targets.
And you’ll only know if you’re not hitting your targets if you track
them!
So here’s a couple of free trackers to help you monitor your team’s
performance:
This Sales KPI Dashboard tracks all your business’s key targets
we established in Step #1.
This Sales Team Comp Calculator will show how much money
your Salespeople are making based on your comp structure.
ACTION STEPS:
Follow the first 2 steps in this cheat sheet and you’ll be able to
choose a comp plan structure for your team TODAY. And keep
following Step #3 to make sure it’s working, so you can make
changes ASAP if necessary.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 17
SALES TEAM COMP PLAN
CHEAT SHEET
LET’S SUMMARIZE THIS:
Step #1: Set your targets. Figure out how much revenue your
business needs to generate per year, then work out how much
money each salesperson needs to make so you can hit your
revenue target.
Step #2: Get as creative as you like with your comp plans. I’ve
given you 6 possible models to follow. Choose your preferred
model, based on how much money you need to make and how
much you can afford to pay your salespeople per sale.
Step #3: Use your Sales KPI Dashboard and your Sales Team Comp
Calculator to review your team’s performance. If you’re not hitting
your targets, try switching up your comp structure.
©2024 Cardone Training Technologies Inc. All Rights Reserved. 18
SALES TEAM COMP PLAN
CHEAT SHEET
Want some help with this?
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