What is uncapped earnings potential?
The phrase uncapped earnings potential, or unlimited earning potential, refers to sales compensation plans that put no limit or cap on the amount of commission a sales rep can earn on top of their base salary.
While most sales roles within modern organizations are roles with uncapped earnings potential by default, some companies still place a cap on sales reps’ earning potential.
The difference is self-explanatory. Capped earnings, or capped commissions, means a rep won’t be paid commission on deals they close after a certain threshold, while uncapped earnings means there is no limit to the amount of commission a rep can earn.
When a company caps sales earning potential, the move is often intended to protect budget or to ensure they don’t exceed the amount of resources available to pay out reps salaries. However, capping a rep’s earnings often backfires because it gives salespeople less incentive to close deals.
Although capping a sales team’s earning potential may reduce costs in the short term, it’s not typically sustainable for any length of time. Capping earnings can create bad habits and lead to reps attempting to game the system, while also leading to less new revenue.
If you put in the time and energy to research quotas and implement comp plans that motivate the right behaviors, teams with uncapped earning potential will generate more ROI for business in the long run.
Let’s look at the main reasons why most companies believe in uncapped earnings potential:
Continue Reading
Continue Reading
Continue Reading
If you’ve worked in sales, revenue operations, or finance for any amount of time, I don’t have to tell you how important sales compensation is. You already know the right sales compensation plan can motivate your team, improve their performance, and boost overall job satisfaction. And, conversely, you already know the wrong compensation plan can do the exact opposite- demotivate teams, decrease performance, and cause high rates of sales rep turnover.
Sales Development Reps– or SDRs– are a crucial part of any business. SDRs are often the first line of qualification and a major source of pipeline at most organizations. To put it bluntly, how you compensate your SDRs can make or break the success of your sales organization.
The right commission structure can motivate your SDRs to jump out of bed in the morning and take action while the wrong one can wreak havoc on your revenue and pipeline goals.
Since implementing Spiff in early 2021, the Bynder team has spent less time on commission-related administrative tasks which freed up valuable bandwidth to focus on selling activities. Spiff’s intuitive platform gives quota-bearing employees, managers, and admins visibility and transparency into the commission process, creating more trust and increasing motivation across teams.