Example MSP and CSP Sales Compensation Plans

Answer: There are multiple potential approaches. Here are some starting points.

You can download two example MSP sales compensation plans (registration required) from ChannelE2E.

Also, here’s some guidance from Phil LaForge, president and CEO of OneNeck IT Solutions; and a veteran of Nimsoft and CA Technologies). LaForge once told me that a sales compensation plan focused on managed or cloud services should have incentives across these five areas:

  1. New Revenue Generation: Drive recurring revenue growth by focusing on new customer business and long-term annuity type MSP contracts.
  2. Upsells:Even as the sales professional drives new customer engagements, make sure the sales professional has perks to drive upsells in his or her installed base.
  3. Profit Generation: Include sales incentives to keep your team focused on IT services that deliver the highest gross profit margins.
  4. Strategic Alignment:Make sure there are incentives that inspire your sales team to sell services that align with your long-term direction.
  5. Satisfaction and Retention: Reward sales pros who participate in delivering a great customer experience.

LaForge and I first discussed potential sales compensation plans in 2010 or so. His blogs on the topic have proven very popular.

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