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Figure 3From “What is a sales compensation plan?”

A compensation plan record

Write the role and credited measure, fixed and variable pay, thresholds and payouts with their period, limits and update rule, and the behaviour to watch in five columns.

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Figure 3A compensation plan record

A five-column worksheet for recording a sales compensation plan: the role and credited measure, the fixed and variable pay, the thresholds and payouts, the limits and the rule for the next quota, and the behaviour the plan may invite with the data that would show it.Role and creditedmeasureWhich role, paid onwhich measure(revenue, margin,units), creditedwhen?Fixed and variableWhat are the salaryand the rate, andwhat variable shareis expected atquota?Thresholds and payoutsWhich quotas, overwhich period, paywhich bonus or higherrate when reached?Limits and update ruleCeiling or floor? Isthe next quota set onown results, groupresults or capacity?Behaviour to watchWhich timing or effortpattern could this planinvite, and which datawould show it?A plan whose update rule is unwritten has an update rule anyway. Write it down before the first quota is reset.

Source: Author's decision worksheet. The fields follow the plan components in Chung, Steenburgh and Sudhir (2014), p. 165; the limits and update-rule field follows Misra and Nair (2011), pp. 212-214, 218; the behaviour field follows the effort-timing mechanisms in Lal and Srinivasan (1993), p. 778, and Misra and Nair (2011), p. 215. The fields are reader inputs; no company data is supplied.

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APA 7

Isoglu, S. (2026). A compensation plan record [Figure]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-sales-compensation-plan-fig03/

BibTeX
@misc{isoglu-2026-what-is-a-sales-compensation-plan-fig03,
  author = {Isoglu, Sinan},
  title = {{A compensation plan record}},
  year = {2026},
  howpublished = {Figure 3, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-sales-compensation-plan-fig03/},
  note = {From the essay {What is a sales compensation plan?}}
}
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<figure>
  <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-sales-compensation-plan-fig03/">
    <img src="https://isoglu.com/social/isoglu-2026-what-is-a-sales-compensation-plan-fig03.png" alt="Figure 3: A compensation plan record" width="3200" height="2400">
  </a>
  <figcaption>Figure 3: A compensation plan record. Source: Author&#39;s decision worksheet. The fields follow the plan components in Chung, Steenburgh and Sudhir (2014), p. 165; the limits and update-rule field follows Misra and Nair (2011), pp. 212-214, 218; the behaviour field follows the effort-timing mechanisms in Lal and Srinivasan (1993), p. 778, and Misra and Nair (2011), p. 215. The fields are reader inputs; no company data is supplied. <a href="https://isoglu.com/insights/exhibits/isoglu-2026-what-is-a-sales-compensation-plan-fig03/">View exhibit</a>.</figcaption>
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