Villagers,
I’m not sure if this topic has been covered before, but we’re growing more quickly and I’m looking for advice on crafting PS Management compensation plans.

The current plan is based 100% on a margin target, with a target quarterly bonus pegged directly to the % of the target met in the period ( Target Bonus * Percentage of Target Met).

Since we are a software company, I’m looking to create a plan that incents the PS manager to assist in the sale of higher margin items such as software and service subscriptions.  I’m guessing somebody in PSVillage already has the main elements of such a plan worked out and might be willing to share.  What I’ve been thinking so far, is the ideal plan would provide a bonus that provides:

* Component tied to meeting or exceeding margin target
* Incentive payments for each:
- New software subscription sale, pegged to size of the deal revenue
- Software subscription renewal
- Service contract renewal
- Document subscription renewal
* Anything I might have missed?

Any thoughts, suggestions or outright plan examples would be *greatly* appreciated.

Regards,

Bruce I.