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Varying Compensation Goals or Rates by Revenue Class

All revenue classes on the same plan element share the same quota or revenue goals and compensation rate table. If revenue classes in a compensation plan have different quotas or revenue goals or are paid according to different rate tables, you must create a plan element for each revenue class that has a different quota or revenue goal or compensation rate.

For example, made-to-stock models of Global Computers' Sentinel and Envoy PCs cost less to manufacture, and thus bring the company higher profit margins (Figure 7 - 6). To promote sales in revenue classes associated with higher profit margins, Global pays both the Sentinel and the Envoy made-to-stock (MTS) revenue classes at higher compensation rates than their assemble-to-order (ATO) counterparts.

In this scenario, Global defines two plan elements: one for the MTS revenue classes, and another for the ATO revenue classes. Global associates a different compensation rate table with each plan element.

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