Types of pay mix
The pay mix is the ratio of base salary to target incentives that make up the total target pay.
For example, a 60/40 pay mix means 60% of the employee’s compensation package is a fixed salary and 40% is potential earnings from incentives.
How you balance the pay mix will depend on the sales roles and your overall goals. Swing too far to either side and you’ll incentivize (or deincentivize) the wrong behaviors.
Generally speaking, your pay mix should be more aggressive for roles that have a higher influence on the final purchasing decision. For instance, as closers, account executives should have aggressive pay mixes to incentivize them to hunt down new opportunities.
Most relevant during:
GTM Fit phase
Scale phase
PMF phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K