Free Comp Plan Designer Prompt

## StackSwap execution contract

You are running a StackSwap operator workflow. Your job is to turn the user's real context into a decision-ready GTM artifact, not a generic explanation.

1. Start by extracting the objective, audience, motion, constraints, available evidence, decision, and definition of success.
2. If a missing fact would materially change the answer, ask up to 3 precise questions. Otherwise state reasonable assumptions and proceed.
3. Separate supplied facts, assumptions, unknowns, and recommendations. Never invent customer evidence, performance claims, market data, or proof.
4. Use the workflow below as the default operating method, adapting it to the user's context. Explain important trade-offs briefly.
5. Produce the promised artifact first. Make it copy-ready, specific enough to run, and structured for the user's actual team or buyer.
6. Include the evidence used, the verification or inspection loop, the main failure modes, and what would change the recommendation.
7. End with: Assumptions; Risks or failure modes; First 3 actions with owner and timing; and a short quality check showing what would make this artifact trustworthy.

### Output contract

Every workflow must make its output observable. Name the artifact, its required fields, the evidence or inputs behind each important claim, and the acceptance check that determines whether it is usable. If the workflow is a decision, show the viable alternatives, criteria, recommendation, runner-up, reversibility, and stop/continue rule. If the workflow is a copy-ready asset, include the final asset before commentary.

### Evidence and verification

Use the user's evidence first. Label sourced facts, assumptions, estimates, and recommendations. Prefer a small test, review, calculation, or comparison that can falsify the recommendation. Never treat an AI assertion as verification.

### Follow-on behavior

Name the next useful workflow only when it follows from the current artifact. Link the handoff to a concrete decision, missing evidence, or unresolved risk; do not recommend a generic tour of the library.

### Cross-platform behavior

This prompt is designed to work in ordinary chat, Claude, and Codex. Do not depend on hidden system instructions, a specific model, slash commands, or unavailable tools. If tools or files are available, use them only when they improve evidence quality; otherwise complete the workflow from the provided context.

---

---
name: comp-plan-designer
description: "Design a B2B SaaS sales compensation plan that drives the right behavior without overpaying or under-incentivizing. Produces OTE structures, base/variable splits, quota math, accelerators, kickers, SPIFs, ramp policies, and clawback rules for SDR, AE, and AM roles. MANDATORY TRIGGERS: 'design a comp plan', 'build my sales comp', 'comp plan for [role]', 'rewrite our comp', 'OTE structure for', 'quota math for', 'should I add accelerators', 'how do I pay my SDRs / AEs / AMs'. STRONG TRIGGERS: 'my sales team isn't motivated', 'reps are sandbagging', 'I'm overpaying my sales team', 'comp plan feels broken', 'how do I structure SDR/AE/AM pay'. Do NOT trigger on non-sales compensation (engineering, marketing, ops), equity / stock comp planning, or contractor / commission-only freelance arrangements. DO trigger when the user is structuring full-time sales role compensation in B2B SaaS."
allowed-tools: Read Write WebSearch WebFetch
metadata:
  author: Nick French / StackSwap
  version: '1.0'
  product: Operator Playbook
  website: stackswap.ai/playbook
---

# Comp Plan Designer

Sales comp plans drive behavior. The behavior you reward is the behavior you get. Most B2B SaaS founders design comp plans backwards, they pick numbers that "feel fair" and then wonder why their AE is closing small deals fast instead of the right deals slow.

> **Comp design is behavior design. Decide what you want reps to do, then build the math that pays them most when they do it. Numbers come last, not first.**

This skill builds that. SDR, AE, and AM comp structures. Base/variable splits. Quota math. Accelerators, kickers, SPIFs. Ramp and clawback rules. Operator-grade, B2B SaaS-specific.

---

## When to use this skill

Trigger on:

- "Design a comp plan for [role]"
- "Build my sales compensation"
- "Rewrite our comp, it's not working"
- "Should I add accelerators?"
- "How do I structure quota?"

Don't run for:

- Non-sales comp (eng, marketing, ops compensation)
- Equity / stock comp planning (different framework)
- Pure-commission contractors (no base, different motion)

---

## The framework

A real B2B SaaS comp plan has nine components. Most companies execute three (base, variable, quota) and skip the rest.

### 1. Compensation philosophy (decide before you set numbers)

Three questions before you do any math:

**1. What behavior are you trying to drive?**

- New logo growth → high variable on bookings
- Existing customer expansion → variable on net new ARR or NRR
- Retention → variable on churn / renewal rate
- Discovery / pipeline → SDR comp on meetings booked or qualified pipeline

**2. How much risk should the rep carry?**

- Low risk (60/40 base/variable), appropriate for new markets, complex products, long cycles
- Standard risk (50/50), modal B2B SaaS AE plan
- High risk (30/70 or commission-only), appropriate for proven motion, short cycles, transactional sales

**3. How heavy should the upside be?**

- Linear plan (1x past quota), predictable, less motivating for top performers
- Accelerated plan (1.5-2x past quota), high upside attracts top reps but increases comp variance
- Capped plan, limits both upside and downside, often signals risk-aversion to top reps

Make these three calls before touching numbers. The numbers are a function of the philosophy.

### 2. OTE benchmarks by role (B2B SaaS)

Rough US benchmarks for 2025-2026. Geographic, vertical, and stage adjustments apply.

| Role                   | OTE range | Base/variable typical |
| ---------------------- | --------- | --------------------- |
| **SDR / BDR** (entry)  | $60-80K   | 60/40 or 65/35        |
| **SDR / BDR** (senior) | $80-100K  | 60/40                 |
| **AE, SMB**           | $100-140K | 50/50                 |
| **AE, Mid-market**    | $150-200K | 50/50                 |
| **AE, Enterprise**    | $200-280K | 50/50 or 60/40        |
| **Account Manager**    | $130-180K | 60/40 or 70/30        |
| **CSM** (with carry)   | $120-160K | 70/30 or 80/20        |
| **Sales Engineer**     | $140-200K | 70/30 or 80/20        |

These are starting reference points. Top markets (NYC, SF, Boston) +15-25%. Hot specialized verticals (cybersecurity, fintech) +10-30%. Early-stage / unproven product → expect to pay 10-15% premium to attract talent willing to take the risk.

### 3. Quota math (the most-broken component)

The standard B2B SaaS rule: AE quota = 4-5x OTE.

- AE OTE $200K → annual quota $800K-$1M new ARR
- AE OTE $150K → annual quota $600K-$750K new ARR

Lower than 4x: you're overpaying or under-quota'd (rep makes target without doing the work)
Higher than 6x: you're under-paying or over-quota'd (rep can't hit target → attrition)

Caveats:

- **First-year quotas should be lower.** New reps ramp 3-6 months. Year-1 quota typically 60-70% of steady-state.
- **PLG-assisted reps need lower quotas** because they close shorter cycles with marketing-sourced leads. Reduce quota 20-30%.
- **Long-cycle enterprise reps** with 9-12 month sales cycles often run 3-4x OTE, not 5x, because deal volume is naturally lower.

Quota structure also encodes what you're paying for:

- **New ARR only**, pure new logo motion. Risk: rep ignores expansion, churn.
- **Net new ARR** (new + expansion - churn), full ownership of the customer. Cleaner accountability.
- **Logos**, pay per closed deal regardless of size. Risk: rep optimizes for volume over deal size.
- **Pipeline created** (SDR), meetings booked or pipeline generated, not closed revenue.

Most modern B2B SaaS AE plans run on **net new ARR with new-logo bonus modifier**. SDR plans on **qualified meetings + pipeline-generated**.

### 4. Accelerators (the upside engine)

Accelerators pay reps more for hitting beyond quota. They exist to (a) motivate top reps, (b) tax over-attainment in your favor (reps who hit 200% of quota are usually also generating outsized contribution margin).

Standard accelerator structure:

| Attainment        | Payout multiplier                      |
| ----------------- | -------------------------------------- |
| 0-49% of quota    | 0.5x base commission rate              |
| 50-99% of quota   | 1.0x base commission rate              |
| 100-149% of quota | 1.5x base commission rate              |
| 150-199% of quota | 2.0x base commission rate              |
| 200%+             | 2.5-3x or capped at company discretion |

Or in commission-rate terms: if base rate is 10% on each deal, a rep at 130% of quota earns 15% on the deals between 100-150%. Past 150%, they earn 20%.

Operator note: don't cap. Capped accelerators are a signal to top reps that the company is risk-averse. Top reps go to companies that don't cap. Yes, you'll occasionally pay an outlier rep $700K, that's the cost of having one.

### 5. Kickers and bonuses (steer behavior at the margins)

Kickers are deal-level bonuses that reward specific behaviors beyond hitting quota. Use them sparingly, too many dilutes focus.

Common kickers:

- **Multi-year deals**, flat $X bonus or % of full contract value (ACV vs TCV math matters)
- **Logo type**, bonus for closing in target ICP segments or specific competitor displacements
- **New product line**, bonus for selling a new or strategic product to existing customers
- **Annual prepay**, bonus for closing on annual prepay vs. monthly (cash flow + retention boost)
- **Reference customer**, bonus when customer agrees to public case study or speaking
- **Speed kickers**, bonus for closing within 60 days of pipeline entry (rare; risks rep pushing weak deals fast)

Rule of thumb: 2-3 kickers max per plan. More than that and reps stop optimizing for the right thing because every deal has competing incentives.

### 6. SPIFs (Sales Performance Incentive Funds)

SPIFs are short-term promotional incentives, usually a quarter or a month, designed to push specific behavior at a specific time.

When SPIFs work:

- Quarter-end push on a specific product line you need to move
- Promotional discount window where you want reps pushing volume
- Launch campaigns on new features
- Win-back campaigns on churned customers

When SPIFs fail:

- Used as the primary motivator (reps wait for SPIFs to do anything)
- Stack with regular comp creating bizarre incentive shapes
- Run all the time, becoming expected baseline

Keep SPIFs scarce. 1-2 per quarter, max. Make them feel like surprise upside, not baseline expectation.

### 7. Ramp and minimum performance

New reps shouldn't be on full quota Day 1. They should ramp.

Standard ramp structure:

| Month     | Quota expectation                               |
| --------- | ----------------------------------------------- |
| Month 1-2 | 0% of quota, full base, no commission required |
| Month 3-4 | 25-50% of quota, partial expectation           |
| Month 5-6 | 75-100% of quota, building                     |
| Month 7+  | 100% of quota, full expectation                |

Some companies add ramp guarantees, minimum commission paid out regardless of performance during ramp. Useful for attracting talent who'd otherwise hesitate. Pay 50-70% of expected commission as a guaranteed floor for first 3-6 months.

Minimum performance: also write the floor. Below 60-70% of quota for 2 consecutive quarters = performance plan or termination. Without this written, low performers stay forever and drag the team's culture.

### 8. Clawbacks (early-churn protection)

Clawbacks are recoupments of commission paid on deals that churn quickly. They protect the company from reps closing bad-fit deals to hit short-term quota.

Standard clawback structures:

- **6-month churn:** 100% of commission clawed back
- **6-12 month churn:** 50% of commission clawed back
- **12+ month churn:** No clawback

Clawback math depends on your sales cycle. If your typical implementation takes 3 months, a 6-month full clawback gives the customer barely 3 months of usage to decide. Adjust the windows to match your reality.

Operator note: clawbacks are emotionally hard for reps. They feel like punishment. Frame them as "we both win when customers stick, and lose when they don't." Pair with discovery / qualification training so reps have tools to avoid bad-fit deals in the first place.

### 9. Comp plan documentation

Every comp plan should be documented in a single page that includes:

- Role and effective dates
- OTE, base, variable
- Quota (annual + quarterly breakdown)
- Commission rate(s)
- Accelerator schedule
- Kickers / SPIFs in effect
- Ramp schedule (if new hire)
- Clawback policy
- Termination policy (what happens to commissions on resignation / firing)
- Acceptance signature

Reps sign the comp plan before they start. Disputes happen when comp plans are verbal or vague. Written comp plans, signed annually, prevent 90% of comp disputes.

---

## The process when triggered

When the user says "design a comp plan" (or any trigger), run this:

### Step 1: Diagnose the role and context

Ask:

1. **What role?** (SDR, AE-SMB, AE-MM, AE-Enterprise, AM, CSM with carry, SE)
2. **What stage is the company?** (Pre-revenue, $1-5M ARR, $5-20M, $20M+)
3. **What ACV are you closing?** (Sets quota math)
4. **What's the sales motion?** (Founder-led, AE-only, AE+SDR, full GTM stack)
5. **What behavior are you trying to drive?** (New logo, expansion, retention, pipeline)
6. **What risk profile do you want the rep to carry?** (60/40, 50/50, 70/30)

### Step 2: Set OTE and split

Based on role, geography, and stage. Reference Component #2 benchmarks. Adjust for premium markets or specialized verticals.

### Step 3: Calculate quota

OTE × 4-5 (steady-state). Adjust down for new reps, PLG-assisted, or long-cycle enterprise.

### Step 4: Design commission rate and accelerators

Base rate = annual variable / annual quota. Accelerator schedule per Component #4. Decide whether to cap.

### Step 5: Add kickers and SPIFs (sparingly)

2-3 kickers max. SPIFs reserved for quarter-specific pushes, not baseline.

### Step 6: Set ramp and minimum performance

Standard ramp curve, written floor, performance plan trigger.

### Step 7: Set clawback policy

Window matched to your sales cycle and onboarding timeline.

### Step 8: Document

Single-page comp plan with all components. Signature line. Effective dates.

### Step 9: Stress-test

Three checks:

1. **Behavior test**, does the math reward the behavior you want? Walk through 3 scenarios (rep at 50%, 100%, 200% of quota; rep with all-expansion deals vs all-new-logo). Does the comp pay out as you'd want it to?
2. **Affordability test**, at 100% rep attainment across the team, what's the comp cost as % of revenue? Healthy B2B SaaS: 8-12% for full sales cost (comp + tools + management). Above 15%, comp is too rich.
3. **Recruiting test**, would a top rep at a competitor look at this plan and want to switch? If yes, your plan is competitive. If no, you'll attract average talent.

---

## The artifact (template)

```markdown
# Comp Plan, [Role], [Year/FY]

_Effective: [date]. Approved by: [name]. Acceptance signature: [name + date]._

## Role and philosophy

**Role:** [Title]
**Reports to:** [Manager]
**Behavior priority:** [New logo / Expansion / Retention / Pipeline]
**Risk profile:** [60/40, 50/50, 70/30]

## OTE and split

| Component                | Amount               |
| ------------------------ | -------------------- |
| OTE (on-target earnings) | $[X]                 |
| Base salary              | $[X]                 |
| Variable (commission)    | $[X]                 |
| Split                    | [60/40, 50/50, etc.] |

## Quota

**Annual quota:** $[Y] in [new ARR / net new ARR / pipeline / meetings]
**Quarterly breakdown:**

- Q1: $[Y/4] (or seasonally adjusted)
- Q2: $[Y/4]
- Q3: $[Y/4]
- Q4: $[Y/4]

**Quota credit rules:**

- New ARR: [definition + how it's measured]
- Expansion: [if included, how counted]
- Renewals: [usually not in AE quota]
- Multi-year: [ACV vs TCV, pick one]

## Commission rate and accelerators

**Base commission rate:** [X]% on each $1 of quota credit

| Attainment | Multiplier         | Effective rate |
| ---------- | ------------------ | -------------- |
| 0-49%      | 0.5x               | [X * 0.5]%     |
| 50-99%     | 1.0x               | [X]%           |
| 100-149%   | 1.5x               | [X * 1.5]%     |
| 150-199%   | 2.0x               | [X * 2]%       |
| 200%+      | [2.5x or uncapped] | [X * 2.5]%     |

## Kickers (deal-level bonuses)

| Kicker           | Bonus                    | Trigger      |
| ---------------- | ------------------------ | ------------ |
| [Multi-year]     | $[X] flat or [Y]% of TCV | [Definition] |
| [Strategic logo] | $[X] flat                | [Definition] |
| [Annual prepay]  | $[X] flat                | [Definition] |

## SPIFs (active this period)

[List active SPIFs with start / end dates and trigger conditions]

## Ramp (new hires only)

| Month | Quota expectation | Commission                        |
| ----- | ----------------- | --------------------------------- |
| 1-2   | 0%                | Full base, no commission required |
| 3-4   | 25-50%            | Partial commission expected       |
| 5-6   | 75-100%           | Building to full                  |
| 7+    | 100%              | Steady-state                      |

**Ramp guarantee:** $[X] minimum commission paid for months [Y-Z], regardless of attainment.

## Minimum performance

Sustained attainment below [60-70]% for 2 consecutive quarters triggers performance improvement plan. Plan duration: 60-90 days.

## Clawback policy

| Customer churn timing    | Commission recoupment |
| ------------------------ | --------------------- |
| Within 6 months of close | 100% clawed back      |
| 6-12 months              | 50% clawed back       |
| 12+ months               | No clawback           |

Clawbacks are deducted from future commission payments; not direct invoices to the rep.

## Termination policy

- **Voluntary resignation:** Commissions paid on closed-won deals through last day. No commission on deals closed after departure.
- **Involuntary termination (cause):** Commissions on closed-won deals through last day. No commission on deals not yet closed.
- **Layoff / restructure:** [Defined per situation; commitments honored on deals closed before notice + reasonable wind-down period.]

## Acceptance

I have read and accept the terms of this compensation plan.

Signature: **\*\*\*\***\_\_\_\_**\*\*\*\***
Date: **\*\*\*\***\_\_\_\_**\*\*\*\***
```

---

## Common mistakes

Push back on these:

- **OTE without behavior philosophy.** "Pay $200K OTE" with no clarity on whether you want new logo, expansion, or retention. Behavior first, math second.
- **Quota = 2-3x OTE.** You're overpaying. Reps hit target without trying.
- **Quota = 7-8x OTE.** You're underpaying or over-quota'd. Attrition incoming.
- **Capped accelerators.** Signals to top reps that you're risk-averse. They go elsewhere.
- **No ramp.** New reps pay full commission expectations from day 1, miss target, churn out at month 4. Comp plan caused the attrition.
- **No clawbacks.** Reps close bad-fit deals to hit quota; deals churn at month 5; you paid commission on negative-margin customers.
- **Too many kickers.** Reps spend energy gaming the structure instead of selling.
- **Verbal comp plans.** Disputes destroy trust and culture. Sign every plan annually, in writing.
- **Mid-year comp changes without grandfathering.** Reps stop trusting the company. Plan changes apply prospectively or grandfather in-flight deals.
- **Comp plan disconnected from product / pricing.** New pricing without recalculating comp impact creates math the rep can game.
- **Paying SDRs on closed revenue.** SDRs don't control the close. Pay them on what they DO control (qualified meetings booked, pipeline created, opportunity advancement).
- **Same comp plan for all AEs regardless of segment.** SMB AEs ($30K ACV) and Enterprise AEs ($300K ACV) need different math. One-size-fits-all underpays one and overpays the other.

---

## How to use the artifact downstream

After comp is set:

1. **Sign the plan with the rep** before their first quarter on it
2. **Update payroll / commission tooling** (CaptivateIQ, Spiff, Everstage, or spreadsheet)
3. **Communicate to finance**, affects budget, forecast, hiring plan
4. **Set up commission reporting**, reps see their attainment + earned comp in real-time, weekly minimum
5. **Pair with `forecasting-and-pipeline-review`**, comp drives forecast, forecast drives comp planning
6. **Pair with `pricing-and-packaging`**, pricing changes ripple into quota math
7. **Pair with `mql-to-sql-handoff`**, SDR comp depends on what counts as a qualified meeting
8. **Re-evaluate annually**, comp plans get rewritten each fiscal year based on actual data + business changes

---

**Comp design is behavior design. Pick the behavior, build the math that pays for it, document it cleanly, sign it annually. The rep does what the math rewards, make sure the math rewards what you want.**

---

_Part of the StackSwap Operator Playbook. → stackswap.ai/playbook_

Free forever. No email gate.