Ramp Period

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What is a Ramp Period?

Ramp period (also called onboarding period) is the time allocated for new sales reps to learn the product, company processes, and territory before being held to full quota. During the ramp period, quotas are typically reduced or progressively structured, and commission plans may include guarantees or adjusted rates. According to Alexander Group (2024), the average ramp period in B2B SaaS is 4-6 months.

Why Ramp Periods Matter

Well-designed ramp periods serve multiple purposes:

  • Realistic expectations: New reps aren't set up to fail
  • Learning time: Allows proper training and development
  • Financial security: Guarantees income during the learning period
  • Quality focus: Prevents rushing to close bad deals
  • Retention: Reduces early turnover from unrealistic pressure

According to Pavilion (2024), companies with structured ramp periods have 35% lower turnover among new sales hires.

Typical Ramp Period Length

Sales Type Typical Ramp Factors
Transactional/SMB 1-3 months Simple product, short cycle
Mid-Market 3-6 months Moderate complexity
Enterprise 6-12 months Long cycles, complex deals
Technical sales 6-9 months Product expertise required

Ramp Period Structures

1. Graduated Quota Ramp

Quota increases progressively:

Month Quota % If full quota = $50,000
Month 1 0% $0 (training only)
Month 2 25% $12,500
Month 3 50% $25,000
Month 4 75% $37,500
Month 5+ 100% $50,000

2. Draw/Guarantee Period

Guaranteed income regardless of performance:

  • Months 1-2: Full OTE guaranteed
  • Month 3: 75% guarantee + commission
  • Month 4+: Commission only (no guarantee)

3. Hybrid Approach

Combines elements:

  • Month 1: 100% guarantee, no quota
  • Months 2-3: 50% guarantee + 50% quota
  • Months 4-6: 25% guarantee + 75% quota
  • Month 7+: Full quota, no guarantee

Ramp Period Calculation Example

6-Month Ramp Scenario

New rep: Michael

  • Full monthly quota: $50,000
  • Full OTE: $90,000 ($54,000 base + $36,000 variable)
  • Commission rate at quota: 10%
Month Quota % Quota Guarantee Sales Earnings
1 0% $0 $3,000 $0 $7,500*
2 25% $12,500 $2,500 $10,000 $7,000*
3 50% $25,000 $2,000 $27,500 $7,250**
4 75% $37,500 $1,500 $35,000 $6,500
5 100% $50,000 $0 $47,500 $5,750
6 100% $50,000 $0 $55,000 $6,000

*Base + guarantee
**Base + commission (sales above guarantee threshold)

Best Practices for Ramp Periods

Match ramp to sales cycle: Ramp should exceed typical sales cycle - if cycle = 60 days, ramp ≥ 90 days.

Set clear milestones: Define expectations beyond quota (training, pipeline generation, certifications).

Provide adequate support: Dedicated onboarding program, mentor assignment, regular check-ins.

Balance protection and motivation: Some quota responsibility from months 2-3 maintains momentum.

Ramp Period Metrics

  • Time to first deal: Average days to close first sale
  • Ramp attainment: % of ramp quota achieved
  • Time to full productivity: When full quota is consistently hit
  • Ramp period churn: % who leave during ramp

FAQ About Ramp Periods

What happens if the rep performs above ramp quota?

Most companies pay full commission on all sales, even during ramp. The guarantee is typically a floor, not a ceiling.

Is the ramp guarantee recoverable or non-recoverable?

Non-recoverable (sunk investment) is most common and recommended. Recoverable draws can create debt and demotivate new reps.

How is ramp handled for internal promotions?

Typically shorter ramp (1-2 months) since the rep already knows the product and processes.

Manage Ramp Periods with Prowi

With Prowi, you can configure ramp-specific quota structures, track ramp attainment separately, and automatically adjust commission calculations during the onboarding period.