Sales Commissions is a part of Field Operations, reporting into Sales Operations. Our goal is to incentivize the field to close business, collaborate to make GitLab successful and process commissions in an accurate and timely fashion. We aim to be viewed as a trusted business partner for Field Sales.
Exciting news for FY22! We are migrating our existing commission system to Xactly Incent! More information to follow, however, some key features are shown below:
There are two ways to connect with us.
|GETTING STARTED||QUOTAS||COMMISSION PLANS|
|FY21 Sales Compensation Plan
FY21 Commission Program
Month 1 Ramp Schedule: 15 Day Rule
FY21 Commission Program Terminology
Commission Hold and Releases
All employees with variable compensation plans will be assigned a quota that supports their assigned territory/region shortly after the beginning of each fiscal year or when they enter into their role. Quota assignment and quota ramp (including any mid-year adjustments) are determined by Sales Leadership. Sales Leadership reserves the right to make any adjustments to quotas.
The quota coverage types are:
Can be made of various measurements, but typically by ARR at the Territory, Region or Segment levels.
The current Commission Plan presentation outlines the key components in detail.
Effective February 1st, 2021, we will be utilizing a 15 day rule to determine "Month 1" of your Ramp Schedule. If you are hired during the 1st-15th of any given month, that is considered your "Month 1", and if you are hired after the 15th of any given month, then there is a 0% contribution of that month's quota, and your "Month 1" begins on the first of the following month. Example:
For all enterprise native-quota carrying salespeople, we assume around a ten (10) month ramp before a rep is fully productive. We have the following ramp up schedule and measure quota performance based on this schedule:
For all Mid Market native-quota carrying salespeople, we assume around a five (5) month ramp before a rep is fully productive. We have the following ramp up schedule and measure quota performance based on this schedule:
For all Channel Account Managers, we assume around a three (3) month ramp before a rep is fully productive. This ramp is layered into the Partner Soured quota only. Partner Assist and Partner Fulfilled quotas are not ramped. We have the following ramp up schedule and measure quota performance based on this schedule:
For all internal transfer native-quota carrying salespeople, we assume around a three (3) month ramp before a rep is fully productive. We have the following ramp up schedule and measure quota performance based on this schedule:
We also factor in seasonality into our calculations. We expect most of our business to close in the second half of the year. Our Worldwide seasonality assumptions are as follows:
Each native-quota carrying salesperson carries an individual seasonality based on the specific circumstances of their accounts, territory, region and segment. The above seasonality is the aggregation of GitLab as a whole, and is not specific to one person or team. Xactly will provide Quotas by Month and Quarter.
Most commission plans are paid monthly; however there are some plans that are paid on a quarterly basis. Most commissions plans are calculated in CaptivateIQ.
|Job Family||Split Base||Split Variable|
|SMB Account Executive||50||50|
|Account Executive - Mid Market||50||50|
|Strategic Account Leader||50||50|
|Area Sales Manager||50||50|
|Manager, Public Sector Inside Sales||50||50|
|Inside Sales Rep||50||50|
|Channel Sales Manager||60||40|
|Channel Services Manager||70||30|
|Technical Account Manager||75||25|
|Professional Services Engineer||90||10|
|Demo Systems Engineer||90||10|
|Professional Services Practice Manager||85||15|
|Professional Services Technical Instructor||90||10|
|Professional Services Engagement Manager||80||20|
You can find the definitions of Base Commission Rate (BCR) and Super Commission Rates (SCR) in the Sales Compensation Plan page under the Definitions section.
Base Commission Rate (BCR) is the commission rate applicable to all salespeople that are on a commission plan. BCR is calculated as Annual OTI (On Target Incentive) / Full and/or Normal Quota and is the base rate to which multipliers are applied to arrive at the accelerated rates.
New salespeople who join after the fiscal year may be eligible for a Super Commission Rate (SCR) which is calculated as Prorated OTI / Prorated Quota. OTI is prorated based on their start date while their Quota is prorated based on ramp and seasonality assumptions. Example of SCR
David Hong, VP of Field Operations, explains how the Super Commission Rate works:
FY21 commissions will be channel neutral for all deals thru partners (including Distributors, if applicable), which means standard partner discounts are credited back to the salesperson and must follow order processing procedures to correctly flag partner attribution. Total IACV on the deal after all discounts will count towards quota credit, but the channel neutral amount does not qualify for quota credit and only pays out for compensation at BCR. See Channel Neutral section referenced in the FY21 Commission Plan presentation
Salespeople are eligible to earn multi year commissions for IACV and Channel Neutral if the opportunity term is more than 12 months and the customer prepays the entire Total Contract Value (TCV). Outyear IACV and Channel Neutral will be paid at 50% of BCR and will not be counted towards quota credit.
The following rules will apply for the various roles within the organization:
|Strategic Account Leader,
Mid Market Account Executive
|Is the Opportunity Owner||Opportunity owner will receive the commission|
|SMB Customer Advocate||Account Owner is SMB AND Account Owner is on SMB AE’s Regional Team||Account owner is an SMB team member AND the Account Owner is on regional team, SMB AE will receive credit|
|Area Sales Manager (ASM)||Opportunity Owner is subordinate AND
Account Owner is on Regional Team
|If the Opportunity owner is a subordinate AND the Account Owner is on the ASM's regional team, the ASM will receive credit|
|Regional Director (RD)||Account Owner is your subordinate||The opportunity owner may be on a different regional team, but if the Account Owner is on the RD's team, the RD will receive credit. It is possible to override if the RD of the opportunity owner requests credit for the deal|
|Vice President (Sales)||Account Owner is your subordinate||The opportunity owner may be on a different Regional team, but if the Account Owner is on the VP's team, the VP will receive credit|
|Inside Sales Representatives - Public Sector (ISR)||Sub-Industry||The opportunity owner may be anyone on the PubSec team so long as the sub-industry is the one supported by the ISR|
|Solutions Architects (SA)||Opportunity Owner is on your regional team||The opportunity owner must be on the SA's team for them to receive credit|
|Technical Account Manager (TAM)||Opportunity Owner is on your regional team||The opportunity owner must be on the TAM's team for them to receive credit|
Commissions are paid when the opportunity is invoiced in full. If the opportunity is not invoiced in full no commissions will be paid. These commissions will be held in the Commission system and will be released by the billing team when invoiced in full. In case of a special situation where the commissions need to be released even though not invoiced in full we would need written approval from the CRO and CFO to release those commissions.
Within the first few weeks of your employment, you should receive your participant schedule. This document will provide details on your plan components, territory, plan start and end dates, payout frequency, base and super (if applicable) commission rates, prorated and full quotas, and variable payouts per component.
Credit splits are allowed at an opportunity level and can be requested by native-quota carrying salespeople. Opportunity splits must be requested before any work is shared on an opportunity and approved prior to the closed won date.
As part of SOX 404 control environment all quota carrying reps need to certify if there were any deviations to the handbook policy with respect to quote approval and contract management process. Reps should read and acknowledge the letter and report any exceptions.
The main aim of this rep certification letter is to identify:
Rep letters will be sent quarterly by the Internal Audit Team. Reps are required to acknowledge the certification letter.
|Roll out certificates by Internal Audit||4th day of the subsequent month after the quarter-end|
|Receive responses by||8th day of the subsequent month after the quarter-end|
|Internal Audit to collate all the information and communicate to Principal Accounting Officer||12th day of the subsequent month after the quarter-end|
|Principal Accounting Officer and Chief Financial Officer to review the responses and to communicate to audit committee||14th day of the subsequent month after the quarter-end|
Effective 2020-06-15 (replacing the prior SPIFF) FY21 PS SPIFF