Dear Reader,
Welcome to the 91st edition of the good reads newsletter by Malpani Ventures. Sharing your weekly dose of articles for this weekend’s reading!
Creating a Sales Commission Plan
Best practices, trends, and insights on how to create an effective sales commission plan in the software industry
The standard split between base and variable for sales reps is 50/50 across all segments.
The standard advice is that the quota:OTE should be somewhere around 4 - 6x. In other words, AEs bring in 4-6x their total compensation in sales.
Pilot’s Path to Product-Market Fit — Three-Peat Founders on Picking the Right Team and the Right Market
https://review.firstround.com/pilots-path-to-product-market-fit
3rd Time founders share their path to PMF:
If you can articulate what needs to happen in a checklist, you can, piece by piece, translate that checklist into software.
irst things first: Don't ever jeopardize CSAT. You should never be so desperate to hit your numbers that you sacrifice customer satisfaction. We’re always asking, “What do our customers want us to do?”
Hot Take Alert #10: OKRs
OKRs: Why do we use them. Where do people go wrong. How to do them right, including a template!
Engage your team in participating – don’t make them top-down exclusively.
Keep them simple: 3 to 5 objectives; 3 to 5 key results for the company and departments.
Work on dependencies collectively while setting the OKRs; it’ll help you avoid a huge reconciliation later.
Set them with the right level of ambition.
Keep them out of performance reviews. That’s not the job of OKRs.
Until next time!