Sales Compensation Manager, Pinehurst Foods
Accepted answer
We went through this in 2024. We now pay 40% of the incentive on the committed amount at signature and 60% on consumption billed in the first 12 months, paid monthly in arrears. The signature payment keeps cash flowing for the rep. The consumption payment is where the real money is, and it rewards landing the right customer over the biggest paper commitment.
Quota is set on first-year consumption, not commitment. That was the harder change, because forecasting consumption per territory was new for everyone.
