1. Plan Overview
This document reflects the fully locked 2026 sales compensation design for Strive Pharmacy. It covers the Account Executive (AE), Territory Sales Manager (TSM), and Sr. Territory Sales Manager (Sr. TSM) roles, as well as the SLA Contract mechanic available to all TSM-tier reps.
Core Philosophy
AEs are paid to open clinics. TSMs are paid to grow and retain them.
Every comp event is tied to a specific, observable trigger reps control.
Momentum tagging ensures baselines adapt to clinic trajectory — growing accounts are held to real performance, plateau accounts earn a retention spread.
One rate for all TSM-tier reps. Sr. TSM carries larger legacy accounts — same mechanics, different book composition.
2. Account Executive (AE) — Activation Model
AEs are hunters. Their job is to identify and activate new clinics — defined as reaching 10 scripts within a trailing 60-day window. They are paid on activation quality and speed, not on gross profit percentage.
2.1 Compensation Structure
| Component | Trigger | Amount | Notes |
|---|---|---|---|
| Activation Bonus | 10 scripts within trailing 60-day window | $250 per clinic | Paid at trigger |
| Velocity Kicker | Based on activation pace in that month | See tier table | Paid at trigger, same month |
| Day-90 Trailing | Clinic still active (≥5 Rx/mo) at day 90 | 10% of incremental GP | GP above activation baseline (~5 scripts/mo). Paid at day 90. |
2.2 Velocity Kicker Tiers
| Monthly Activation Pace | Kicker per Clinic | Total per Clinic (incl. $250 base) |
|---|---|---|
| < 5 activations/mo | $0 | $250 |
| 5–7 activations/mo | +$300 | $550 |
| 8–10 activations/mo | +$500 | $750 |
| 11+ activations/mo | +$750 | $1,000 |
Note: The kicker is based on the number of clinic activations in that calendar month. It applies to all activations in the month — not just the marginal one.
2.3 Handoff Rule
The clinic territory assignment moves to the TSM at the activation trigger. However, the TSM commission clock does not start until the handoff_date — defined as the first calendar day of the month following the activation_date. Scripts written in the gap between activation_date and handoff_date count toward the AE's 90-day trailing credit and also roll into the TSM's 60-day baseline calculation from handoff_date. The Day-90 trailing payment is an independent event paid to the AE regardless of which TSM now owns the account. This creates a natural warm-handoff incentive: the AE has financial interest in the clinic staying healthy through day 90.
2.4 Clawback Policy
| Trigger | Condition | Clawback Amount |
|---|---|---|
| Clinic goes dark | 0 orders in 60 days within 6 months of activation trigger | Full clawback: activation bonus + kicker |
| Day-90 payment | Clinic below 5 Rx/mo at day 90 | Day-90 $250 not paid (no clawback of upfront) |
Going dark: Defined as zero orders placed within a 60-day window. Clawback window: 6 months from activation trigger date. After 6 months, no clawback applies.
3. TSM / Sr. TSM — Incremental GP Model
Territory Sales Managers (TSM and Sr. TSM) are paid to grow and retain clinics. Commission is earned on incremental gross profit above each clinic's momentum-adjusted baseline. The momentum tagging system ensures the baseline adapts to each clinic's trajectory — growing accounts are held to real performance standards, while plateau accounts receive a synthetic earnable spread that rewards active retention without creating mailbox money.
Role Structure: Sr. TSM carries the larger legacy clinic book (primarily Large and Enterprise accounts). TSM carries the remainder. Both roles operate under identical comp mechanics — the difference is book composition, not rules.
3.1 Compensation Structure
| Component | Detail |
|---|---|
| Commission Rate | 10% on incremental GP above each clinic's momentum-adjusted baseline — single rate, no SKU differentiation |
| Commission Floor | Zero commission on clinics below 10 scripts/month (3-month trailing average) |
| Drop-Out Threshold | Clinic below 10 scripts/month for 2 consecutive months → moves to CSM/unmanaged bucket |
| No Quota | No annual quota — baseline and momentum mechanics replace quota as the growth and retention standard |
3.2 Momentum Tagging
Each clinic is tagged monthly by Analytics based on its trailing volume trajectory. Tags drive baseline setting and update with a 2-month stability buffer — a clinic must hold its new trajectory for 2 consecutive months before the tag change affects its baseline.
| Tag | Trigger | Defined As |
|---|---|---|
| Growing | Last 3-mo avg > prior 3-mo avg by more than +10% | Clinic is meaningfully expanding volume |
| Plateau | Last 3-mo avg within ±10% of prior 3-mo avg | Clinic is stable — neither growing nor declining |
| Declining | Last 3-mo avg < prior 3-mo avg by more than -10% | Clinic is losing meaningful volume |
| Insufficient Data | Fewer than 4 months of order history | New handoff — standard new-clinic baseline applies |
Stability buffer: Tag changes do not affect the baseline until the new tag has been held for 2 consecutive months. This prevents baseline whipsawing from single-month fluctuations and gives reps a brief window to respond before comp mechanics shift.
3.3 Baseline Mechanics by Momentum Tag
The baseline is the GP floor below which no commission is earned. How it is set depends on the clinic's momentum tag.
| Momentum Tag | Baseline | Rationale |
|---|---|---|
| Growing | Real trailing 3-month average GP | Rep must keep growing to keep earning — baseline fully catches up |
| Plateau | Trailing 3-month average GP × 85% (15% discount) | Creates synthetic earnable spread on flat accounts — rewards active retention without requiring growth above real volume |
| Declining | Blended reset: (trailing 3-mo avg GP + prior 3-mo avg GP) ÷ 2 | Cushions the downside without freezing the baseline — walks down gradually with the clinic rather than immediately or not at all |
Plateau discount in practice: A Large clinic averaging $15,000 GP/month tagged Plateau gets a baseline of $12,750 (85%). The TSM earns 10% on the $2,250 spread = $225/month per clinic for keeping it healthy — no goal to negotiate, no KPI to check. When the clinic returns to Growing, the discount disappears and the baseline snaps back to real trailing average after 2 stable months.
Baseline at handoff: Set at ~5 scripts/month. TSM comp clock starts at
handoff_date, not activation_date.
3.4 Drop-Out & Commission Floor
| Zone | Trigger | Outcome |
|---|---|---|
| Commission floor | Clinic drops below 10 scripts/month (3-mo trailing avg) | Zero commission — clinic remains in TSM book but earns nothing |
| Grace zone | Below 10 scripts for month 1 | TSM owns it, earns nothing — motivated to recover before 2-month trigger |
| Drop-out | Below 10 scripts for 2 consecutive months | Clinic moves to CSM/unmanaged bucket — exits TSM book |
The 2-month drop-out buffer is intentional — TSMs get one full month to act before losing the account. This is consistent with the 2-month stability buffer used throughout the momentum tagging system.
3.5 TSM Self-Generated Activations
| Parameter | Detail |
|---|---|
| Bonus amount | $200 per self-gen clinic at activation |
| Activation threshold | 10 scripts within trailing 60-day window — same standard as AE activations |
| Attribution rule | Clinic must have had no AE contact in the prior 90 days to qualify |
| Ongoing commission | Normal TSM GP commission structure applies |
4. SLA Contract Mechanic
Any TSM managing a clinic at scale can negotiate an SLA contract — a minimum order quantity (MOQ) commitment in exchange for improved pricing. Partners commit to a monthly volume floor, and in return receive contracted pricing and a signing bonus.
Why We Require MOQ Commitments
The MOQ is not just a comp mechanic — it exists to create predictability for both the clinic and for Strive. When a partner commits to a volume floor, Strive allocates capacity around that commitment: people, supplies, compounding resources, and fulfillment bandwidth. Without a committed MOQ, Strive cannot responsibly scale resources for that account. The MOQ is how we formalize the partnership and ensure both sides are invested in making it work.
The MOQ is not just a comp mechanic — it exists to create predictability for both the clinic and for Strive. When a partner commits to a volume floor, Strive allocates capacity around that commitment: people, supplies, compounding resources, and fulfillment bandwidth. Without a committed MOQ, Strive cannot responsibly scale resources for that account. The MOQ is how we formalize the partnership and ensure both sides are invested in making it work.
4.1 Eligibility & Terms
- Eligibility threshold: Clinic averaging ≥250 scripts/month (3-month trailing average)
- MOQ: Negotiated by TSM; minimum floor of 250 scripts/month
4.2 Baseline Freeze Under SLA
Under SLA contract, baseline is frozen at MAX(3-month trailing avg at contract signing, MOQ). A rep cannot sign a low MOQ to manufacture a lower baseline.
4.3 Signing Bonus (MOQ Path)
$500 per 100 scripts of committed MOQ (i.e., $5 per committed script/month).
Example: 400-script MOQ = $2,000 signing bonus.
Example: 400-script MOQ = $2,000 signing bonus.
4.4 SLA Renewal Taper
| Renewal Type | Bonus |
|---|---|
| Year 2 — same MOQ | 50% of original signing bonus |
| Year 3 — same MOQ | 25% of original signing bonus |
| Year 4+ — same MOQ | 0% |
| Any year — MOQ increase | 100% on incremental scripts above original |
| Any year — MOQ decrease | 50% of new lower committed amount |
4.5 SLA Clawback
| Event | Trigger | Consequence |
|---|---|---|
| MOQ miss | 2 consecutive months below committed MOQ | Contract voids; clawback triggered |
| Clawback months 1–6 | Breach in first 6 months | 100% of signing bonus recovered |
| Clawback months 7–12 | Breach in months 7–12 | 50% of signing bonus recovered |
5. CSM Compensation
CSMs own the stagnant and at-risk clinic portfolio. Their comp has two components: a monthly retention bonus that scales with how well they keep their portfolio active, and a reactivation bonus earned when a rescued clinic returns to TSM ownership. Both are additive.
5.1 Monthly Retention Bonus
Measured at the end of each calendar month. Active = at least one Rx fill placed in the month. Retention rate = active clinics ÷ total clinics in CSM portfolio.
| Monthly Retention Rate | Bonus per Active Clinic | Example — 40-Clinic Portfolio |
|---|---|---|
| < 70% | $0 | No bonus — below floor |
| 70% – 79% | $15 / active clinic | 32 active × $15 = $480 / mo |
| 80% – 89% | $25 / active clinic | 35 active × $25 = $875 / mo |
| ≥ 90% | $40 / active clinic | 37 active × $40 = $1,480 / mo |
The per-clinic rate scales with retention tier — hitting the 90%+ tier isn't just better per clinic, it's significantly better. A 40-clinic portfolio at 89% retention earns $875/mo; at 90% it earns $1,480/mo. The jump from 89% to 90% on a 40-clinic book is one clinic — and it's worth $605/month.
5.2 Reactivation Bonus (Additive)
| Component | Detail | Notes |
|---|---|---|
| Reactivation bonus | $100 per clinic returned to TSM ownership | Paid in addition to retention bonus — not instead of it |
| Threshold | ≥10 scripts in trailing 60-day window at point of transfer | Same threshold as original AE activation |
| Tracking | csm_bucket_entry_date · csm_bucket_reason | HubSpot workflow + BigQuery |
Reactivated clinics exit the CSM portfolio. The CSM's retention rate denominator shrinks by one the following month, which can improve or maintain their rate. There is no penalty for successfully returning a clinic to TSM ownership.
5.3 Portfolio Mechanics
| Mechanic | Detail |
|---|---|
| Portfolio entry | Trailing 3-mo avg scripts < 10 for 2 consecutive months → moves to CSM bucket (see TSM-6) |
| AM early warning | Automated alert issued after 1st miss month — TSM's final window before 2nd miss triggers transfer |
| Active definition | ≥1 Rx fill placed in the calendar month |
| Retention measured | Last business day of each calendar month |
| Portfolio exits | Reactivation to TSM (counts as win) or confirmed churn (tracked, not penalized in bonus) |
| Minimum portfolio size | Retention bonus requires ≥10 clinics in portfolio to qualify — prevents gaming with tiny books |
5.4 Annual Earnings Examples
Strong performer — 40-clinic portfolio at 92% avg retention:
37 active clinics × $40 × 12 months = $17,760 retention bonus
+ 8 reactivations × $100 = $800 reactivation bonus
Total variable: $18,560
37 active clinics × $40 × 12 months = $17,760 retention bonus
+ 8 reactivations × $100 = $800 reactivation bonus
Total variable: $18,560
Average performer — 30-clinic portfolio at 82% avg retention:
25 active clinics × $25 × 12 months = $7,500 retention bonus
+ 4 reactivations × $100 = $400 reactivation bonus
Total variable: $7,900
25 active clinics × $25 × 12 months = $7,500 retention bonus
+ 4 reactivations × $100 = $400 reactivation bonus
Total variable: $7,900
Below floor — 25-clinic portfolio at 65% retention:
Retention bonus: $0 (below 70% floor)
+ 2 reactivations × $100 = $200 reactivation bonus
Total variable: $200 — strong signal this portfolio needs leadership attention
Retention bonus: $0 (below 70% floor)
+ 2 reactivations × $100 = $200 reactivation bonus
Total variable: $200 — strong signal this portfolio needs leadership attention
6. Management Overrides
6.1 Override Structure
| Role | Override % | Pool |
|---|---|---|
| AE Manager | 10% | Their direct AE team's total variable |
| TSM Manager | 10% | Their direct TSM team's total commission |
| Partnership Manager | 10% | Their direct Partnership team's total variable |
| AE Director | 4% | All AEs in director's org |
| TSM Director | 4% | All AMs in director's org |
| VP of Sales | 2% | Full field org (AEs + AMs combined) |
| VP of Partnerships | 4% | Full Partnership team variable |
Important: Overrides are additive at each layer. Reps do not take a haircut — management override is an additional Strive expense.
6.2 Worked Example — Full Leadership Stack
| Role | Pool Used | Override % | Override Payout |
|---|---|---|---|
| TSM Manager (one team) | $48,000 (6 AMs) | 10% | $4,800 |
| TSM Director (AM org) | $144,000 (18 AMs) | 4% | $5,760 |
| VP of Sales (full field) | $344,000 (AEs + AMs) | 2% | $6,880 |
6.3 Worked Example — Clinic Level
| Recipient | Calculation | Amount |
|---|---|---|
| AM (rep) | $216 earned on incremental GP | $216.00 |
| TSM Manager | 10% × $216 | $21.60 |
| TSM Director | 4% × $216 | $8.64 |
| VP of Sales | 2% × $216 | $4.32 |
| Total Strive cost | $250.56 |
7. Partnership Compensation
7.1 Telehealth Groups — MOQ Structure
Why the MOQ Exists
The MOQ is the foundation of every Partnership deal — it gives both the partner clinic and Strive the predictability needed to build a real relationship. When a partner commits to a volume floor, Strive allocates capacity around that commitment: clinical staff, compounding resources, fulfillment bandwidth, and account support. Without a committed MOQ, Strive cannot responsibly scale to serve that partner. The MOQ is how both parties formalize their investment in the partnership.
The MOQ is the foundation of every Partnership deal — it gives both the partner clinic and Strive the predictability needed to build a real relationship. When a partner commits to a volume floor, Strive allocates capacity around that commitment: clinical staff, compounding resources, fulfillment bandwidth, and account support. Without a committed MOQ, Strive cannot responsibly scale to serve that partner. The MOQ is how both parties formalize their investment in the partnership.
| Component | Detail | Notes |
|---|---|---|
| Signing bonus | $1.00 per committed script/month — paid in full at contract execution (100% at signing) | Min 2,500 scripts/month. No cap. Clawback window: 12 months — see §7.1a. |
| Growth commission | None | Eliminates sandbagging incentive |
| No renewal commission. Partnership reps are paid at contract execution only. CSM handoff at month 12 ends all rep comp. No Year 2/Year 3 taper applies — signing bonus is a one-time payment. | ||
7.1a Partnership Clawback Mechanic
The full signing bonus is disbursed at contract execution. In return, Strive holds a clawback right for 12 months if the partner fails to sustain their committed MOQ. This mechanic mirrors the SLA contract clawback used by the TSM team — same trigger, same recovery schedule, same window.
| Scenario | Trigger | Recovery Amount |
|---|---|---|
| Clawback triggered | 2 consecutive months below committed MOQ | See schedule below — depends on months since signing |
| Months 1–6 | Breach detected within first 6 months | 100% of signing bonus recovered |
| Months 7–12 | Breach detected in months 7–12 | 50% of signing bonus recovered |
| After Month 12 | CSM handoff fires; clawback window closes | $0 — no further clawback exposure |
Consecutive miss counter (
consecutive_miss_months): The counter increments on each below-MOQ month and resets to zero on any compliant month. A single miss generates a warning notification to the rep and manager. The second consecutive miss triggers the Finance recovery task. Counter is tracked in HubSpot and synced to BigQuery partnership_deals nightly.
Month 12 — CSM Handoff: The
csm_handoff_date is set to deal_signed_date + 12 months at the time of signing. When this date fires: (1) the account transfers to the CSM team; (2) the clawback window permanently closes; (3) no further rep comp or clawback actions are permitted on that deal. Tracked via clawback_triggered and clawback_amount_recovered fields.
No double-trigger: Once
clawback_triggered = true is set on a deal, no further clawback actions fire on that deal. Finance creates a single recovery task for the full applicable amount.
7.3 GPO & Franchise Networks
⚠ PENDING STAKEHOLDER APPROVAL — Not Active for July 1 Launch
GPO and Franchise Network compensation mechanics are currently under review and have not yet been approved. This section will be updated once finalized. Do not pursue GPO or franchise network deals under this comp plan until approved — contact your manager for guidance.
GPO and Franchise Network compensation mechanics are currently under review and have not yet been approved. This section will be updated once finalized. Do not pursue GPO or franchise network deals under this comp plan until approved — contact your manager for guidance.
7.4 Ownership & Channel Rules
⚠ Ownership Rules — Tentative / Pending Approval
Channel ownership for GPO networks and franchise companies is not yet finalized. Tentatively: Partnerships team will own GPO networks and Tech platforms; Brick & Mortar team will own franchise networks. Subject to change — do not rely on this until formally approved.
Channel ownership for GPO networks and franchise companies is not yet finalized. Tentatively: Partnerships team will own GPO networks and Tech platforms; Brick & Mortar team will own franchise networks. Subject to change — do not rely on this until formally approved.
| Relationship Type | Owner | Rationale |
|---|---|---|
| GPO networks (Tentative — TBD) | Partnerships team | Organizational-level sale — pending approval |
| Telehealth groups (MOQ) | Partnerships team | Corporate relationship at scale |
| Telehealth franchise companies (Tentative — TBD) | Partnerships team | Predominantly telehealth in nature — pending approval |
| Brick-and-mortar franchise companies (Tentative — TBD) | Brick & Mortar / TSM team | In-person, clinic-level relationship — pending approval |
7.5 Year-1 Earnings Examples
Telehealth MOQ Example: A telehealth group signs an MOQ of 5,000 scripts/month = $5,000 signing bonus paid in full at contract execution. Clawback exposure: 100% (months 1–6) → 50% (months 7–12) → $0 after month 12 (CSM handoff). Assuming partner meets MOQ every month, clawback window closes at month 12 with no recovery. No renewal commission — signing bonus is paid at contract execution only.
GPO Network Example: A new GPO network signs = $2,500 flat fee. As each provider within the network activates (hits 10 scripts in 60 days), the rep earns $100 per provider. A 30-provider network fully activating = $3,000 in activation bonuses + the $2,500 signing fee = $5,500 total Year-1 earnings from that network.
No renewal commission — partnership reps are paid at contract execution only. CSM handoff at month 12 ends all rep comp.
8. Pricing Authorization Rules
8.1 Authorization by Channel
| Channel | Default / Without MOQ | With Signed MOQ | Exception Process |
|---|---|---|---|
| AE | Catalog price — no discount authority | N/A | Any discount below catalog requires TSM written approval |
| TSM | Wayfinder pricing floor | Can go below Wayfinder floor | Below-Wayfinder requires Finance approval |
| Partnership | Wayfinder pricing floor | Can go below Wayfinder floor | Below-Wayfinder requires Finance approval |
| GPO | Wayfinder pricing only | Below Wayfinder available with MOQ | Requires signed MOQ + Finance approval |
8.2 Governance & Approval Process
| Scenario | Who Approves | Process |
|---|---|---|
| AE quotes below catalog | Assigned TSM | TSM provides written approval before rep quotes |
| AM/Partnership quotes below Wayfinder | Finance | Submit pricing exception request; Finance reviews within 2 business days |
| GPO channel exception | Finance + MOQ | Exception only valid with signed MOQ in place |
| Any not covered above | Finance | Default to Finance. When in doubt, escalate before quoting. |
Exceptions are not retroactive. Pricing must be approved BEFORE it is quoted. Reps who quote unapproved pricing are responsible for the GP impact.
9. CSM Compensation
Full CSM compensation details are in Section 5 — CSM Compensation. Summary: monthly retention bonus (tiered $15–$40 per active clinic based on portfolio retention rate) + $100 reactivation bonus per clinic returned to TSM ownership. Both additive.
9.1 Stagnancy & CSM Bucket
Drop-out threshold: trailing 3-month avg scripts < 10 for 2 consecutive months. Clinics meeting this criterion are flagged by the TSM-6 query and transferred to the CSM bucket by Sales Ops. TSMs receive an automated early warning alert after the 1st miss month — this is the TSM's last window to work the clinic back above threshold before the 2nd miss triggers transfer. Tracked via csm_bucket_entry_date and csm_bucket_reason fields in HubSpot with automated workflow triggers.
9.2 Reactivation Bonus
$100 per clinic returned from CSM bucket to TSM ownership. The clinic must clear the 10-script threshold (≥10 scripts in trailing 60-day window) at the point of transfer. Paid in addition to — not instead of — the monthly retention bonus. See § 5.2 for full detail.