Philosophy
Incentives start with client-facing roles as our goal is to accelerate revenue and sales culture. We know that everyone in the GTM (and in the overall team) contributes to the commercial successes.
In any case, we all own the company (BSPCEs) so we have the same incentive for commercial success and for boosting the sales team.
Here are the initial principles of our commission model:
- We want a fair & transparent model
- We want something straight to the point and simple (eg % of ARR closed during the month)
- We want to keep the momentum (monthly payouts based on the previous month's objectives - trigger is on payment)
Commission model at folk
Who is concerned?
A variable isn’t a bonus, it’s part of the compensation (split between variable and base). In most companies, it's usual for sales teams to have a bonus while it’s not usual for other go-to-market roles. At folk, only people who spent time doing demos will be concerned.
How does it work?
Our Salary grid shows the annual package, including 35% variable
100% of the variable is individual.
For instance, a target of $10k new ARR generated
- Below 80% of the objective: No bonus
- Between 80% and 100%: 1x the percentage (eg if you reaches 88% of $10k, you will get 88%)
- No accelerator for now
In the first few months, there should be a ramp-up of the objective, we shouldn’t start at $10k, eg:
- Month1: $5k
- Month2: $7,5k
- Month3: $10k
Is it capped or uncapped?
Our model is uncapped.
We believe capping a bonus is a very bad message to give to sales teams. That being said, we’re quite clear the objective is for a salesperson to be more or less at 100% of their objective. We will revisit targets every month if needed.