Best Practice Report

Recurring Revenue Compensation: Five Keys To An Optimized Plan

March 9th, 2020
Seth Marrs, Principal Analyst
Seth Marrs Principal Analyst

Summary

Sales operations must optimize multiple factors when designing compensation plans in the context of a recurring revenue model. Recurring-usage and recurring-term programs require different compensation strategies to maximize sales. Success depends on building a strategy that leverages the company’s competitive advantages to help it meet future challenges. This process starts with annual planning. In this report, we provide guidance and direction on creating an optimized recurring revenue compensation plan that aligns with corporate objectives and drives appropriate behaviors.

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