Episode 11: (Almost) Everything You Need to Know About Compensation Planning

In today’s episode, Co-host Matt Volm sits down with Ryan Milligan, the savvy VP of Revenue Operations at QuotaPath. Ryan's not your average RevOps guy—he's a comp plan wizard who's been shaking up the scene with innovative strategies that go way beyond the usual sales team focus.

We're diving deep into (almost) everything you need to know about comp planning. We're talking fresh takes on using comp plans as strategic tools for revenue growth, insights from industries outside the usual SaaS bubble, and how to extend variable compensation to teams you never thought of before—like product, marketing, and customer success. 

Comp Plan as a Tool for Revenue Growth

Historically, a comp plan is a by-product of calculations done in a silo by your finance team. This isn’t motivating for people; in fact, it often results in errors and mistrust. Comp plans can be so much more than this. They can be the most powerful tool in your arsenal to drive the behaviors you want. It's not just about paying people—it's about incentivizing actions that directly boost your bottom line.

Use your comp plan strategically to align team actions with company goals. When your team knows exactly what they're being rewarded for, they're laser-focused on hitting those targets that matter most.

“It is the best way to get people to do what you want them to do for the betterment of their wallet and the betterment of your business.” - Ryan Milligan

Jump to the clip to learn when you should start comp planning (hint, it’s earlier than you think).

Non-SaaS Industries with Complex Comp Plans

B2B software can learn a lot from non-B2B businesses that aren’t traditionally big on adopting software. These businesses do well at tying the delivery of their product or service to the compensation. In the roofing business, they have a seller who sells multiple deals on one street or in one area. This increases awareness of their business and accelerates their rates.  

Jump to the clip to hear why Ryan recommends adopting comp plans from outside of B2B software.

Applying Industry Lessons to B2B Software

Ryan encourages RevOps to bring in fresh perspectives from industries like pest control, solar, and medical device sales. These sectors often compensate on profit margins or specific customer behaviors, offering unique insights that SaaS companies can tap into. Don't be afraid to think outside the box—there's a whole world of comp planning wisdom out there waiting to be mined. Adapt comp strategies from other industries to fit your business model. 

“What do your great customers look like? How can you move more and more up the funnel to drive people to sell those types of great customers?” - Ryan Milligan

Jump to the clip to learn more about how other types of businesses compensate on profit margin.

Expanding Comp Plans Beyond Sales Teams (Product, Marketing & Customer Success)

At QuotaPath, everyone's got skin in the game, even engineers and HR folks. Ryan talks about how extending variable compensation to all teams can drive collective success. It's about aligning everyone toward common goals, whether that's boosting average deal sizes or improving product adoption. Implementing variable comp across all teams fosters unity and drives shared objectives. 

Keep in mind, when rolling out comp plans, especially for teams outside sales, timing is crucial. Ryan recommends setting quarterly milestones that are achievable and directly tied to individual contributions. 

Jump to the clip for an example of how QuotaPath pulls in product teams with variable comp plans.

Common Mistake in Comp Planning: Not Defining the Goal

One of the biggest pitfalls in comp planning? Not clearly stating what you're trying to achieve. Ryan emphasizes the importance of crafting a simple sentence that defines the goal of your comp plan. You’re trying to drive reps to an outcome so tell them what that outcome is supposed to be. This clarity helps everyone understand what's expected and why it matters.

“Write a clear sentence defining what the comp plan is trying to achieve. That sentence is so important, but it's so often missed in a comp plan rollout when all you do is send you a screenshot of all your different rates.”  - Ryan Milligan 

Jump to the clip for a deep dive into the most common comp plan mistake.

Best Practice: Transparency in Compensation Plans

Ryan is all about keeping it transparent. He suggests being upfront with your team about how and why the comp plan is designed the way it is. Open dialogues not only build trust but also provide valuable feedback that can refine your strategies. Ask what reps like and don’t like about their comp plans. Open communication around comp plans boosts buy-in and performance, ensures your team feels included, and helps them become more invested in the outcome.

Jump to the clip for tips on how to increase transparency with no comp plans.

Closing Thoughts

Ryan Milligan just dropped a wealth of knowledge that's sure to shake up how you think about compensation planning. The big takeaway? Your comp plan isn’t just a by-product of the finance team’s spreadsheet exercise. Make it a dynamic tool that drives the exact behaviors you need to crush your company goals. Whether you're in SaaS or solar, sales or HR, the principles remain the same. Be strategic, be transparent, and don't be afraid to get a little creative. 

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