Structure · Comp Plans & Role-Play Scenarios

Write a Renewal / Expansion Comp Plan

Build a comp plan for the role(s) that own retainer renewals and account expansion, balancing retention and growth.

foundermanagerAdvanced⏱ 5-7 hours
When to use
Use when designating an Account Manager or Client Partner role, when churn is creeping above acceptable thresholds, or when AEs are sandbagging expansion because nobody owns it. Best paired with a clear handoff process from AE to AM.
The prompt
You are a head of client services at a digital agency. You've designed comp plans for Account Managers and Client Partners that drove gross retention above 92% and net revenue retention above 110%. You know the trap of paying for expansion at the expense of trust.
Agency: [AGENCY_NAME] | Role: [ROLE — AM, CSM, or Client Partner] | Book of business: [BOOK_SIZE] | Avg account ARR: [AVG_ACCOUNT_ARR] | Current gross retention: [GROSS_RETENTION]% | Current net retention: [NET_RETENTION]% | Target NRR: [TARGET_NRR]% | Expansion services available: [EXPANSION_SERVICES] | Target OTE: [TARGET_OTE]
Design a comp plan that rewards (1) gross retention, (2) expansion revenue (upsell + cross-sell), and (3) renewal at no-discount, without creating perverse incentives that erode client trust.

- Variable must split across retention (gate) and expansion (driver).
- Gross retention below a defined floor zeros out expansion commission — retention is a gate, not a bonus.
- Discount-to-renew penalty: payout shrinks proportionally to the discount given.
- Pay expansion on Year 1 of net-new MRR only, with a small renewal kicker if the expansion sticks 12 months.
- Include a clause preventing the AM from being the discount-approver on their own book.

(1) Plan philosophy paragraph, (2) comp table with Base / Retention gate / Expansion variable / Renewal kicker, (3) worked example at 88% / 95% / 105% gross retention crossed with 100% / 130% expansion, (4) discount penalty schedule, (5) one anti-conflict rule.
Variables
  • [AGENCY_NAME] — Your agency
  • [ROLE] — Role being comped (AM, CSM, Client Partner)
  • [BOOK_SIZE] — Number of accounts per rep
  • [AVG_ACCOUNT_ARR] — Average ARR per account
  • [GROSS_RETENTION] — Current gross retention %
  • [NET_RETENTION] — Current net retention %
  • [TARGET_NRR] — Target net revenue retention %
  • [EXPANSION_SERVICES] — Services they can upsell/cross-sell
  • [TARGET_OTE] — On-target earnings
Example input
Agency: Northwind Digital | Role: Account Manager | Book: 14 accounts | Avg ARR: $90K | Gross retention: 86% | Net retention: 98% | Target NRR: 115% | Expansion services: paid social, CRO sprints, video | OTE: $110K
Example output
Philosophy: AMs are paid for trust first, growth second. Retention is the gate; expansion is the lever. Base $77K / Variable $33K / OTE $110K. Variable split: 40% retention bonus ($13.2K at >=92% gross retention, prorated above and zero below 85%), 50% expansion commission ($16.5K at 100% of expansion quota, paid as 10% of Year 1 net-new MRR), 10% renewal kicker ($3.3K) paid on accounts that renewed in the period at zero discount. Worked examples — 88% retention + 100% expansion: $0 retention bonus + $16.5K expansion + $3.3K kicker = $19.8K variable, $96.8K total. 95% retention + 100% expansion: full $13.2K + $16.5K + $3.3K = $33K, $110K total. 105% retention + 130% expansion: $13.2K + $21.5K + $3.3K = $38K, $115K total. Discount penalty: 5% discount = 50% kicker, 10%+ = 0 kicker. Anti-conflict rule: the AM cannot approve discounts on their own book — sign-off goes to the Head of Client Services.
Pro tips
  • Lock the retention gate before you negotiate the expansion math — it's the part execs always cave on.
  • Track 'discount-adjusted ARR' alongside booked ARR so leadership sees the real number.
  • Pair the comp plan with a written renewal playbook so AMs aren't reinventing the conversation each quarter.
Works with
ClaudeChatGPTGemini
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