Commission Plan for Lead Generation, Business Development Team of IT companies

Simple Commission plan for Lead Generation, Business Development teams of IT services companies

The goal of a commission and incentive plan is to drive the desired behavior which should improve all the lead generation metrics tracked by the marketing team and must be aligned with the business goals. If the commission plan is structured well, one can see 20 to 50% improvement in leads, improved opportunity pipeline and new customer sign up.

In my past company – Proteans (now acquired by Symphony Services), tele-prospecting was one of the key methods for generating leads. The team comprise of a Business Development Leader (Team Lead) and about six lead generation executives.

Our first commission plan was simple – it was a function of new customers acquired from leads attributed to lead generation team.  Unfortunately it did not turn out to be very effective. We experimented with several till we figured out the key elements which need to be in the plan to make it successful, listed below for reference.

What are the key elements of lead generation commission plan?

1. The plan should motivate the team to drive the lead down the funnel for each key stage in the funnel.
2. The plan should incentivise high quality leads.
3. The plan should have a component linked to deal wins.
4. Lead generation executive to be rewarded for individual contribution and the team lead for overall team performance and goal achievement of the team.
5. Overall the plan has to be simple to understand and easy to administer.

Based on the above we figured out a plan which worked very well for our situation. The plan has two components, one was for team lead and the other one for lead generation executive.

Lead Generation Executive Commission Plan

1. On MQLs (Marketing Qualified Leads): A fixed amount for each MQL generated with a rider that one must meet 80% of the quarterly goals. MQL was defined as a meeting or a conference call with the prospect that fits the ideal customer profile. The MQL will not be counted if it is frivolous.
2. On Opportunity: A fixed amount for each opportunity created by sales person in the CRM system with a rider that lead generation executive must meet 70% of the quota. The assumption is that only sales people are creating opportunities meaning they see business potential.
3. On won deals: A fixed amount for each new deal signed from a new or existing customer. A lead identified by the lead generation executive from an existing client should also be rewarded for MQL, Opportunity and signed deals.

Team Lead Commission Plan

1. Fixed amount if the team meets 80% of the quarterly goals for MQL.
2. Fixed amount when the team meets at least 70% of the quarterly goals for new opportunity identified.
3. Fixed amount for “each” deal which is attributed to the leads generated by his team.

Also read – How to improve call opening? ,  Importance of coaching and training for demand generation team.