Commission Processing

We have five types of commissions plans for teammates on our sales teams. Below is a summary of each plan, but for more details, please see your individual plan document signed at the beginning of the year. This plan document can also be found in your CaptivateIQ profile. Please see Commission Types below for more details on each plan

  • Account Executives (AE’s)

    • Account executives are given individual plans based on their level, as well as their ramp period (if applicable) Ramp periods only applies to AE’s who start mid-way through a plan year or who are on leave

  • Customer Engineers (CE’s)

    • Customer engineers are assigned a quota based on territory. All the CE’s for a specific territory are paid on ACV closed in a period for that territory

  • Technical Advisors (TA’s)

    • Technical Advisors receive MBO only plans. These are quarterly bonuses based on performance around Net Logo Retention and Net Dollar Retention. The bonus is calculated quarterly by the VP of Technical Success and supplied to accounting for payout. TA commissions are not processed inside CaptivateIQ

  • Sales Development Representatives (SDR’s)

    • SDR’s are paid a flat $ commission based on how many SAO’s they captured in a given period. These are treated as a bonus vs a true commission

  • Sales Overlay and Sales Leadership

    • All sales overlay and leadership employees are paid based on the company ACV goal vs attainment. Sales Overlay and Sales Leadership commissions are not processed inside CaptivateIQ

Commission Payouts

Commissions are paid on a monthly basis. Commissions are calculated by the 4th business day of the month, finalized on the 5th business day, and paid on the 15th payroll. All commissioned teammates processed in CaptivateIQ, will be able to review their draft statements in CaptivateIQ for accuracy before the noon deadline on the 5th business day. Any corrections that come from inquiries after that deadline, will roll into the next commission cycle

Please be sure to join the #ask-commission slack channel. Here is where all updates and to-do’s are posted for commissionable employees and is the central location to ask questions

Commission Types

Account Executives

Plan Quota

Account Executives (AE’s) have an annual quota plan. That plan is based on three different measures with annual OTI being weighted between the three measures as follows:

  • New Annual Contract Value - 60% of Annual OTI
  • New Logo Retention (Individual Goal) - 20% of Annual OTI
    • NLG is a semi-annual goal and will reset halfway through the year
  • Gross Retention Rate (GRR) (Individual Goal) - 20% of Annual OTI

New Annual Contract Value Payout

ACV payout is paid monthly and is determined by the new ACV booked in a month by the AE. ACV included two tiers, the base tier, or Tier 1 (plan quota) and Tier 2, which is any AVC booked over quota.

  • Tier 1 (T1) - This is the quota assigned to the AE in their plan and paid at the Base Commission Rate which is calculated by dividing the ACV OTI by their ACV Quota
  • Tier 2 (T2) - This is any ACV earned over the T1 quota, and is paid at an accelerated BCR (BCR * 200%)

New Logo Generation

NLG is paid monthly and at a flat dollar amount based on NLG OTI. NLG earned over the quota is paid out at the accelerated rate of 120%

Gross Retention Rate

GRR is paid out at year end as a bonus and will be calculated by sales leadership and provided to accounting for processing. A Quarterly draw of $2,500 will be paid to each AE with the final true-payout occurring once a year at year-end

Ramping

All AE’s who start after the current year plan start date (February 1st of every year), will be considered on Ramp. The ramping period lasts 6 months and is defined by a prorated quota as well as a draw bonus equal to their monthly OTI for the first three months.

The prorated quota is a calculation based on their OTI, Ramping period and the plan assigned to the AE. Once the 6 months has passed, they will them be measured against their plan quota (see above Plan Quota)

Transitioned Accounts

Should an AE be assigned to an account with an existing opportunity due to the prior AE exiting the business, the new AE shall be eligible to receive full commissions and attainment associated with the new opportunity. For opportunities assigned to an AE based on parental leave, please refer to the company’s parental leave policy

Customer Engineers

Plan Quota

Customer Engineers (CE’s) have an annual quota plan. That plan is based on two different measures with annual OTI being weighted between the two measures as follows:

  • New Annual Contract Value - 75% of Annual OTI
  • Tech Win MBO - 15% of Annual OTI

New Annual Contract Value Payout

ACV payout is paid monthly and is determined by the new ACV booked in a month by the AE. ACV includes two tiers, the base tier, or Tier 1 (plan quota) and Tier 2, which is any AVC booked over quota.

  • Tier 1 (T1) - This is the quota assigned to the CE in their plan and paid at the Base Commission Rate which is calculated by dividing the ACV OTI by their ACV Quota
  • Tier 2 (T2) - This is any ACV earned over the T1 quota, and is paid at an accelerated BCR (BCR * 125%)

Tech Win MBO

Tech win MBO’s are calculated by the VP of Technical Success on a quarterly basis and provided to accounting for commission processing

Technical Advisors

Technical Advisors are on an annual MBO plan. They are paid quarterly MBO bonuses as calculated by the VP of Technical Success on a quarterly basis and provided to accounting for commission processing. The MBO is based on Net Logo Retention (60% of OTI) and Net Dollar Retention (40% of OTI)

Sales Development Representatives

Plan Quota

Sales Development Representatives (SDR’s) have a monthly quota plan. 100% of SDR OTI is based on Sales Accepted Opportunities (SAO) quota. There are two different monthly SAO quotas based on if an employee is an Inbound SDR, and Outbound SDR or a VC/BOD Program Lead

  • Inbound Quota: 5
  • Outbound Quota: 4
  • VC/BOD Program Lead Quota: 5

SAO Payout

SAO payout is paid monthly and is determined by the number of SAO’s booked in a month by the SDR. SAO’s are included two tiers, the base tier, or Tier 1 (plan quota) and Tier 2, which is any SAO’s booked over quota in a given month

  • Tier 1 (T1) - This is the quota assigned to the SDR in their plan and paid at the Standard SAO rate, which is calculated by taking the SDR’s monthly OTI/Monthly Quota
  • Tier 2 (T2) - This is any SAO’s earned over the T1 quota, and is paid at an accelerated SAO Rate based on position as follows:
    • Inbound & Outbound - $750
    • VC/BOD Program Lead Quota - $625

Regional Sales Director

Plan Quota

Regional Sales Directors (RSD’s) have an annual quota plan. That plan is based on three different measures with annual OTI being weighted between the three measures as follows:

  • New Annual Contract Value - 60% of Annual OTI
  • New Logo Retention (Individual Goal) - 20% of Annual OTI
    • NLG is a semi-annual goal and will reset halfway through the year
  • Gross Retention Rate (GRR) (Individual Goal) - 20% of Annual OTI

New Annual Contract Value Payout

ACV payout is paid monthly and is determined by the new ACV booked in a month by the AE’s assigned to them. ACV includes two tiers, the base tier, or Tier 1 (plan quota) and Tier 2, which is any AVC booked over quota.

  • Tier 1 (T1) - This is the quota assigned to the RSD in their plan and paid at the Base Commission Rate which is calculated by dividing the ACV OTI by their ACV Quota
  • Tier 2 (T2) - This is any ACV earned over the T1 quota, and is paid at an accelerated BCR (BCR * 200%)

New Logo Generation

RSD’s are paid on the NLG that the AE’s assigned to them booked in a given period. NLG is paid monthly and at a flat dollar amount based on NLG OTI. NLG earned over the quota is paid out at the accelerated rate of 120%

Gross Retention Rate

GRR is paid out at year end as a bonus and will be calculated by sales leadership and provided to accounting for processing. A Quarterly draw of $3,000 will be paid to each RSD with the final true-payout occurring once a year at year-end

Sales Overlay and Sales Leadership

Sales Overlay and Sales Leadership employees are held to the annual company goal. Commissions are calculated monthly and paid at the employees annual Base Commission Rate (BCR) for the year. BCR is calculated as follows: Employees annual OTI / Annual company number Commissions are then calculated by multiplying that BCR by the total value of all ACV booked (or lost) in that period.

*Note: in the result of a total negative ACV (churn) occurring in a given month, the employee will not have commission wages deducted from their pay. Instead, the negative commissions will be netted against future payouts.