Apply / Commission Structures / Bonus Layers
Sales Contest
Time-bound competition that pays based on rank - not absolute attainment.
Bonus Layers
Beginner
How it works
A contest pays specific reps based on rank within the team for a specific period. Common formats: top-3 by new logo count, top-1 by largest deal closed, ranking-based monthly leaderboard. Higher-risk than SPIFFs because losers get nothing - design carefully to avoid demotivating most of the team.
Formula
Bonus_rep = rank_bonus(rep_rank)
Worked example
Example. Monthly contest: Top 3 by new-logo count. Prizes: $5K / $3K / $1K. The 4th-ranked rep gets nothing.
Pros & cons
Pros
- Drives focused short-term effort
- Builds team energy and competition
- Highly visible top-performer recognition
Cons
- Demotivating for most of the team
- Risk of cherry-picking and unhealthy competition
- Easy to design unfairly
Best for
- Quarterly pushes on strategic priorities
- Sales kickoff energizers
- Inside-sales floors