# Sales Compensation Plan Design Checklist

> A 20-point pre-launch checklist that catches the pay-mix, accelerator, cap, and payout-mechanics mistakes that don't show up until the first commission run goes wrong.

Free checklist for sales leaders. Topic: [Comp, Quota, Territory & Capacity Planning](https://www.peerlab.ai/library/topic/comp-quota-territory-capacity-planning/). Published by PeerLab in the [Sales Enablement Resource Library](https://www.peerlab.ai/library/). Source: https://www.peerlab.ai/library/sales-compensation-plan-design-checklist/

## How to use it

Work through all 20 items with Finance, Legal, and Sales Ops before the plan is communicated to reps; do not sign off until every box is checked or explicitly waived by the right owner.

## What's inside

- Pay Mix: base/variable split and OTE benchmarking (items 1–4)
- Plan Mechanics: single primary metric and precise 'sale' definition (items 5–9)
- Accelerators & Decelerators: modeled cost at 100/120/150% attainment (items 10–13)
- Caps & Guardrails: anti-gaming rules and clawback language (items 14–16)
- Payout Operations: cadence, statement format, dispute SLA (items 17–19)
- Compliance & Communication: wage-law review before rollout (item 20)
- Full 20-point sign-off checklist ready to run before any plan launches

Run this with Finance, Legal, and Sales Ops before any comp plan is communicated to reps. Every unchecked box is a launch risk.

## Pay Mix
1. ☐ Base/variable split matches role's deal-cycle length and influence over outcome (e.g. 50/50 for transactional AE, 70/30 for an overlay/SE role with less direct control)
2. ☐ On-Target Earnings (OTE) benchmarked against current market data for the role/region within the last 12 months
3. ☐ Variable pay is tied to metrics the rep can actually influence, not company-wide numbers outside their control
4. ☐ Pay mix is consistent across reps in the same role/level, no unexplained plan-to-plan inequity

## Plan Mechanics
5. ☐ Primary quota metric is singular and clear: one number reps chase, not three competing priorities
6. ☐ Secondary metrics, if any, are capped at no more than 20% of total variable so they don't dilute focus
7. ☐ Commission rate(s) stated in writing, in dollars-and-cents terms a rep can calculate by hand
8. ☐ Draw, if used, has a clearly stated recovery mechanism and end date
9. ☐ Plan document defines "sale" precisely, booked vs. signed vs. invoiced vs. collected, this is the #1 source of disputes

## Accelerators & Decelerators
10. ☐ Accelerator thresholds and multipliers are modeled against last year's actual attainment distribution, not a hoped-for distribution
11. ☐ Decelerator (sub-threshold) rate is defined explicitly, reps below plan should never be a payout blind spot
12. ☐ Modeled cost of accelerators at 100%, 120%, and 150% attainment has been run and approved by Finance (see Accelerator & Decelerator Curve Calculator)
13. ☐ Kicker/SPIFF stacking rules are defined so accelerators and SPIFFs don't compound in unintended ways

## Caps & Guardrails
14. ☐ Explicit decision made on whether commission is capped or uncapped, with the cost implication modeled either way
15. ☐ Anti-gaming guardrails exist for known abuse patterns: deal-splitting, quarter-end sandbagging into the next period, discounting purely to hit a number
16. ☐ Clawback/chargeback language is included and reviewed by Legal (see Commission Clawback Clause Language Library)

## Payout Operations
17. ☐ Payout cadence and timing is stated (e.g. "commission paid on the 15th of the month following invoice, not booking")
18. ☐ Commission statement format is defined and will be delivered to reps before the first payout, not built reactively after the first dispute
19. ☐ Dispute/appeals process has a named owner, a deadline to file, and a defined resolution SLA

## Compliance & Communication
20. ☐ Plan has been reviewed against applicable wage law (e.g. commission-on-termination rules, state-specific "earned wage" definitions) before rollout

## Sign-Off Block
| Reviewer | Role | Approved | Date |
|---|---|---|---|
| | Sales Leader | ☐ | |
| | Finance | ☐ | |
| | Legal | ☐ | |
| | Sales Ops/RevOps | ☐ | |