Everything on Compensation Design

Early-stage sales teams should use 100% OTE compensation for the first two quarters to avoid demotivation from arbitrary quotas. Quotas should only be set once sufficient data on cycle times and stage progression is available.

Impact: Prevents early attrition and maintains morale by ensuring sellers are not penalized for unproven targets, fostering a culture of sustainable growth.

— from Ramp SVP: Engineering Sales Machines · The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch· Oct 10, 2026