If you’re in Sales Ops, RevOps, or comp admin for a go-to-market team, you already know: territory-based compensation plans sound simple, but the devil’s in the details. Maybe you’re trying to wrangle a patchwork of spreadsheets or you’ve inherited a janky system that makes your skin crawl every time someone changes territories. This guide is for you—no fluff, just straight talk about setting up territory-based comp plans in Spiff without losing your mind (or your weekend).
Why Territory-Based Plans? (And What Usually Goes Wrong)
Let’s be honest: territory comp plans are popular because they should reward reps for the patch they own, not just the accounts they chase. But unless you’ve got a system that actually tracks territory changes, splits, and exceptions, it turns into a mess—fast.
Common headaches: - Manual tracking. If you’re updating territories in Excel, it’s just a matter of time before mistakes creep in. - Shadow accounting. Reps will do their own math if they don’t trust the system. - Handoff chaos. When a territory shifts mid-quarter, who gets credit? If it’s not clear, expect drama. - Stacked incentives. If you don’t nail down territory rules, reps will cherry-pick deals or sandbag for the next patch.
Spiff promises to make this easier. But only if you set it up right from the start.
Step 1: Get Your Territory Data in Order
If you skip this, nothing else will work. Spiff isn’t magical—it just automates whatever data you feed it. Garbage in, garbage out.
What you need: - A master territory map. This could be zip codes, states, countries, verticals, or account lists—whatever defines a “patch” at your company. - Owner history. Who owned each territory and when? You need start and end dates, not just current assignments. - Clear rules for splits and exceptions. If two reps split a territory, what’s the logic? 50/50? First touch? Make sure this is written down.
Pro tip: Don’t rely on your CRM as the single source of truth unless you know it’s accurate. Often, territory assignments in Salesforce or HubSpot lag behind reality.
Step 2: Clean Up Your CRM (Or At Least Know Its Flaws)
Spiff can sync with your CRM, but it’ll just mirror whatever is there. If your CRM territory fields are a mess, fix them now—or at least document the gaps.
- Standardize territory fields. Don’t have three fields for “Region,” “Patch,” and “Territory.” Pick one and stick to it.
- Audit recent changes. Spot check the last few months. Were territories updated correctly when reps joined/left or when accounts moved?
- Freeze assignments for the comp period. Once a period starts, make it clear how and when changes (if any) will be reflected in pay.
If you can’t get buy-in from Sales Leadership to clean this up, at least flag the risks. Document what’s missing so nobody points fingers later.
Step 3: Prep Your Spiff Environment
Assuming you’ve got Spiff set up and connected to your data sources, here’s what to focus on:
- Import your territory mapping. Use Spiff’s import tools or API to pull in your territory definitions and owner assignments.
- Align your CRM fields with Spiff’s logic. Make sure Spiff knows which field to use for territory assignment. This is often a mapping exercise.
- Test with real data. Before rolling out, run a sample comp calculation for a few reps. Use deals they closed, with the correct territories, and check the math by hand.
What works: Spiff’s territory logic is flexible, but it’s only as good as your data.
What doesn’t: Relying on Spiff as a “fix” for bad CRM hygiene. It won’t save you.
Step 4: Build the Comp Plan Logic
This is where you translate your territory rules into Spiff’s plan builder. Don’t overcomplicate it—start with the basics:
- Assign credit by territory owner. Make sure the plan pays out based on the rep assigned to the territory at the time of the deal (not just current owner).
- Handle splits. If territories are shared or split, use Spiff’s split logic to assign percentages to each rep.
- Account for handoffs. If a deal moves from one territory to another mid-cycle, clarify who gets the credit. Spiff can handle date-based assignments, but only if your owner history is accurate.
Honest take: Resist the urge to build a Rube Goldberg machine. Complex logic might look clever, but it’s a nightmare to debug and impossible for reps to understand.
Example: Simple Territory-Based Commission
- Trigger: Closed Won deal
- Lookup: Who owned the territory (by zip code) at the deal close date?
- Payout: 5% of deal value to that rep
Example: Split Territory
- Trigger: Closed Won deal in a split territory
- Logic: 50% to Rep A, 50% to Rep B (as defined in your mapping table)
- Payout: Each rep gets their share of the commission
Step 5: Test, Test, and Test Again
No matter how confident you feel, test edge cases:
- Territory reassignment mid-quarter
- Deals that close right after a territory change
- Shared accounts or overlays
- Manual adjustments (for exceptions)
Have at least one skeptical sales manager (or a rep who loves to nitpick) review sample payouts. If they can’t poke holes in it, you’re probably in good shape.
Ignore: Fancy dashboards or automation until you’ve nailed the basics. If the logic isn’t right, pretty charts won’t save you.
Step 6: Communicate the Plan (and the Data)
Once the plan is live, your job isn’t done. If reps don’t understand how they get paid—or if they spot errors—you’ll spend all quarter in damage control.
- Share the logic. Show a simple version of the plan in writing. Don’t hide behind legalese.
- Show sample scenarios. “If you close a deal in Territory X, here’s how it pays out.”
- Set expectations for changes. Be upfront about how and when territory changes will show up in Spiff (next pay cycle, end of month, etc.)
- Train reps to spot errors. Encourage them to flag anything odd, but explain what doesn’t count as an error (e.g., if a territory change hasn’t synced yet).
Pro tip: The more transparent you are, the less shadow accounting and complaining you’ll deal with.
Step 7: Maintain and Iterate
Territory plans aren’t “set and forget.” You’ll need to review them every quarter (at least).
- Schedule regular audits. Check a few random payouts each period. Make sure they match your intended logic.
- Update territory assignments promptly. Don’t let six months go by before reflecting org changes.
- Document exceptions. Any manual overrides should be tracked in one place—otherwise, they’ll get lost.
What To Ignore (For Now)
- Overly complex comp structures. If your plan requires a PhD to explain, you’re asking for trouble.
- Exotic incentive logic. Stick to “who owns what, when, and how much” until you’re confident in the basics.
- Automated notifications and dashboards. Cool, but not critical. Focus on getting the math and assignments right first.
Wrapping Up: Keep It Simple, Fix As You Go
You can’t automate your way out of messy data or unclear rules. Spiff’s powerful, but it can’t read your mind or fix a broken process. Start with clean territory data, keep your plan logic simple, and test like your credibility depends on it—because it does.
Remember, every comp plan is a work in progress. Don’t wait for perfect. Build it, test it, and improve it every cycle. That’s how you keep your team (and yourself) sane.