He's Seen 300+ Sales Comp Plans. 90% Make the Same Mistake | Siva Rajamani (Everstage CEO)
JUN 15, 202657 MIN
He's Seen 300+ Sales Comp Plans. 90% Make the Same Mistake | Siva Rajamani (Everstage CEO)
JUN 15, 202657 MIN
Description
Most sales comp plans are quietly broken, and the people running them have no idea. Siva Rajamani, CEO of Everstage, has visibility into 300+ enterprise comp plans, and he says 90% of companies make the same mistakes. In this episode he breaks down what's going wrong, how to spot it, and what a comp plan that actually drives revenue looks like.Siva explains why sales compensation is not a back office cost center but the single biggest lever in your go-to-market strategy. It's the glue between what a company intends and what reps actually do. If your reps aren't doing what you want, the answer isn't in a 1-on-1. It's in your comp plan.We get into the over-complication trap, the hidden math that makes reps refuse your best deals, the base-to-variable ratios that actually work, why your top reps should out-earn almost everyone, and how AI is about to blow open the gap between your best and average sellers.Chapters:00:00 Intro00:30 Siva's RevOps background at Freshworks04:00 Scaling RevOps from 1 to 2504:50 Why he left to build Everstage06:30 Why incentives drive revenue, not tools08:00 Comp as the glue between intent and action10:30 The 1 to 2 mistakes almost every team makes12:00 "If your comp plan needs FAQs, it's a tax code"14:00 The 60-second test for a broken plan15:30 Designing comp to retain top talent16:50 How AI widens the gap between top and average reps18:00 The $1M sales rep is coming19:30 Why optimizing for top earners is better on margins21:30 Quota to OTE ratios that actually work23:00 Base vs variable: the 50/50 rule and exceptions24:00 What Everstage does and who it serves25:30 How Everstage structures its own comp plan28:00 The rise of the revenue architect48:00 CPQ and connecting margin to commissions50:30 When should reps earn commission in the deal cycle52:30 Six month vs twelve month comp cycles54:30 The most a sales rep has ever made55:20 Where to find SivaConnect with Siva Rajamani: Co-founder, CEO of EverstageTwitter/X: https://x.com/siva_rajamaniLinkedIn: https://www.linkedin.com/in/sivasrajamani/Host: Sophie Buonassisi, SVP at GTMnowFollow Sophie: https://x.com/sophiebuonaLinkedIn: https://www.linkedin.com/in/sophiebuonassisi/ABOUT GTMnowGTMnow is the media arm of GTMfund, sharing the strategies, tactics, and stories from the operators and investors building the next generation of go-to-market.Visit us on: https://gtmnow.comFollow us on LinkedIn: https://www.linkedin.com/company/gtmnowFollow us on X (Twitter): https://x.com/GTMnow_Follow us on YouTube: https://www.youtube.com/@GTM_nowFollow us on TikTok: https://www.tiktok.com/@gtmnow_Follow us on Instagram: https://www.instagram.com/gtmnow_/Subscribe for more conversations with the operators and founders behind today's best go-to-market teams.The GTMnow Podcast The GTMnow Podcast is a weekly podcast featuring interviews with the top 1% GTM executives, VCs, and founders. Conversations reveal the unshared details behind how they have grown companies, and the go-to-market strategies responsible for shaping that growth.Visit gtmnow.com for more episodes and other interesting content.