SaaStr

MARCH 18, 2023

Q: Dear SaaStr: Is it Ethical For a Startup CEO to Accept a Sales Commission for Deals They Close Themselves? But not a deal-by-deal commission like a sales rep. It’s a bit of a flag of someone not going big, of not seeing the real win in their equity, not just in a short term contract or two. But still — I did it once.

Commission 112

Commission Closing Contract Sales 112

Hubspot

SEPTEMBER 6, 2024

Even when talks progress all the way to a signed contract, they will never be as engaged as they were in that initial moment when a problem arose and curiosity about your solution struck. Armed with the right solutions, you can increase efficacy, improve efficiency, and exceed your quota — and yes, enjoy those commission accelerators, too.

Closing 80

Closing Contract Technique Sales 80

SaaStr

NOVEMBER 27, 2024

Mangomint has one onboarding manager for every two sales reps, but with no contracts and a 30-day free trial, onboarding starts during the trial. They want to onboard each customer as quickly as possible to earn their commissions and go to the next deal. Mangomint has managed such a high NRR despite having no long-term contracts.

Appointment 102

Appointment Contract Commission Niche 102

Openview

MAY 30, 2018

Commission or bonus-focused compensation plans provide tremendous upside for growth and allow CEOs to truly leverage their people — all while those people are given ample opportunity to make significantly more money than if their income was largely dictated by a fixed salary figure. Commission Capping and Payout Frequency.

Objectives and Key Results 162

Objectives and Key Results Commission Appointment Lead generation 162

SaaStr

MARCH 23, 2025

When Graham joined in February of last year, Codeium had approximately 200 customers generating low single-digit millions in revenue, combining self-service and enterprise annual contracts. It’s a commission-driven role. The 5 Key Elements of Codeium’s GTM Scaling Playbook 1.

GTM 87

GTM Territory Pipeline Growth 87

SaaStr

SEPTEMBER 5, 2024

There are basically two options — really three, by blending the two: The first is to pay monthly commissions. I.e., if you pay the reps a 10% commission on what they close … and the customer pays say $500 a month … you pay the rep $50 a month. The second is to pay annualized commissions, with an allowance for churn.

Commission 117

Commission Customers GTM Contract 117

SaaStr

JULY 31, 2024

In the early days, when Cash is King, pay the sales reps a full commission on all cash paid up-front. We had churn, but it wasn’t due to contract expiration). Ultimately, after $10m ARR, we moved to a format where we paid out 25% commissions on Year 2 and 3 cash up front, instead of a 100% commission. What happened?

Commission 113

Commission Contract Quota Customers 113

Hubspot

AUGUST 27, 2024

Companies should closely monitor their pricing to ensure it doesn’t violate antitrust laws, as the US Department of Justice, the Federal Trade Commission and other regulators are developing and implementing tools to detect anti-competitive behaviors.

Price 72

Price Profit margin Retail Contract 72

SalesBlog!

APRIL 26, 2022

“You could always not get paid”, “Your commission will be cut if you don’t…, You screwed up… which cost me. Maybe even experienced the commission cut. After finally finding and selling a client to only have that hard earned commission threatened… not for me. Don’t offer up your commissions so easily.

Commission 52

Commission Non-Profits Government Contract 52

SaaStr

MARCH 27, 2023

When they have to give back some of their commission if a customer cancels early. Tracking-to-Cash , i.e. paying commissions once cash is received, not just once the deal is signed; and A Low Base Salary, No Matter How Much They Make. They don’t want any risk they have to give back part of a commission. Usually at least.

Commission 117

Commission Contract Cross-sell Sales 117

A Sales Guy

MAY 10, 2013

I billed them for performance commissions I had earned per the contract. The problem was, in spite having met the commission terms of our contract, we were no where close to where we wanted to be from a sales perspective. I went into robot mode, commission trigger pulled. What did I do? I don’t know.

Commission 113

Commission Contract Clients Service 113

Sales Pop!

AUGUST 16, 2023

False advertising refers to a misrepresentation of a product or service, often through misleading or unproven claims, as defined by the Federal Trade Commission. In the United States, the Federal Trade Commission (FTC) oversees advertising practices to prevent misleading claims.

Legal 130

Legal Commission Government Contract 130

SaaStr

JANUARY 28, 2023

Dear SaaSt: Do sales commission clawbacks typically apply after a customer’s payment has cleared (e.g. Yes, you can and should clawback the sales commission on those deals. Most companies don’t pay the total commissions unless these deals convert to full contracts. Ah, clawbacks. But it won’t really matter.

Commission 109

Commission Customers Finance Contract 109

SaaStr

JANUARY 1, 2022

SaaS startups, especially those that sign customers to annual customers, will have customers that want to cancel those un-cancelable contracts and get a refund. And no refund for any part of an annual, signed contract. You signed the contract”. They don’t want their commission clawed back. And Sales especially hates this.

Product 113

Product Contract Commission Customers 113

Hubspot

OCTOBER 16, 2017

Commission only. Base plus commission. Absolute commission plan. Relative commission plan. Straight line commission plan. When to pay commission. For instance, if you want your reps to prioritize renewals over new business, give them a bigger commission for the former. Commission only.

Commission 101

Commission Quota X-functional Non-Profits 101

SaaStr

JULY 22, 2020

Commission that is a Relatively Low % of the Dea l. E.g., no commission at all each month/quarter until you clear a hurdle. I.e., no commission at all until you pay off your base salary + benefits, or say 125% of that month’s base. (True draws are not competitive.). But then, Pay 2x as Much in Commission.

Commission 145

Commission Quota Inside sales Sales 145

SaaStr

APRIL 28, 2025

The SaaStr AI is already one release away from being able to automatically send contracts for simple sponsorship deals rather than just connecting prospects with sales reps. It can handle pricing questions, objections, and proposals without emotional baggage or commission pressure.

Negotiate 93

Negotiate Contract E-commerce Price 93

SaaStr

OCTOBER 26, 2021

Generally, track to the cash: If a customer has signed a pre-paid annual or multi-year contract in exchange for a discount or other terms, then there’s generally no reason to return any pre-paid cash. The contracts are generally not cancellable by their terms, and so you keep the cash. After all, their commission is at risk.

Contract 109

Contract Commission Product Customers 109

Sales Hacker

MAY 9, 2019

Decide Base Pay vs. Variable Pay (Commissions). Create a 2-Page Contract and Get Mutual Commitment [TEMPLATE PROVIDED]. Before you can decide base pay or commissions, you need to start by deciding On Target Earnings or OTE. Step 4: Decide Base Pay vs. Variable (Commissions). Establish Role Levels. Set Targets.

SQL 110

SQL Commission Customers Non-Profits 110

SaaStr

MAY 6, 2023

On commissions / pay-out: For start-ups where cash matters, I strongly suggest compensating the reps mainly on cash brought in. E.g., a multiyear contract where only the first year of cash is pad up front is of limited value. Or just the part attributed to your current year? Approaches vary here. Cash is king.

Quota 112

Quota Commission Sell Contract 112

SaaStr

DECEMBER 12, 2023

Keybanc and Sapphire have some great overall metrics here : Overall, the media AE closes $750,000 a year, and that’s actually up from 2022 — mainly due to hiring freezes and contractions. In any event, that’s good median data. It all sounds a bit harsh at first — compared to the Go Go days of the 2021 or so.

Sell 133

Sell Quota Commission Contract 133

Hubspot

DECEMBER 12, 2017

From commission to sales cycles, models, and metrics, you’ll learn the different ways of selling this unique software and what you can expect from the job. SaaS Sales Commission. Commission is usually added to the base pay and awarded when a salesperson meets or exceeds quota. 4) SaaS Sales Commission. Table of Contents.

Commission 101

Commission Contract Sales Price 101

Hubspot

JANUARY 18, 2019

As a real estate professional, the amount you're paid for each sale is often dependent on commission. And the average commission for the sale of a property is 6% of the purchase price. The broker who is the procuring cause of the transaction is entitled to a commission. This is where procuring cause comes into the picture.

Real Estate 99

Real Estate Commission Legal Contract 99

SaaStr

JANUARY 5, 2023

You can back into the math: Assume a 10% commission rate, maybe 15%. And it might also be on TCV (total contract value), i.e. on say a 3-year deal, especially if all the cash is paid upfront. Close say a huge, $2m deal for 3 years, that’s a $6m contract … that alone could get you a $1m payday if the commission is relatively high.

Commission 108

Commission Contract Closing Sales 108

Sales Hacker

APRIL 19, 2022

Commission plans should be so simple that someone could explain it to you in about 15 seconds,” said Bruno. Measures include multi-year contracts, implementation fees, different products, demo appointments set, quarterly quotas, number of sales accepted opportunities, services, etc.). Compensation design principles. Simple is better.

Commission 98

Commission Product Quota Drivers/motivators 98

Veloxy

DECEMBER 28, 2023

Johnson & Johnson and Cisco Systems are examples of companies that offer competitive outside sales positions, where outside sales salary varies depending on factors such as experience, industry, and commission structure. The inside sales team plays a crucial role in this dynamic environment.

Outside Sales 242

Outside Sales Cold Call Represent Objectives and Key Results 242

SaaStr

JUNE 22, 2021

Q: What is the better SaaS sales compensation plan: paying reps the 12 months up front for the contract value or paying them pro-rated 12 monthly payments? It just takes too long to build up a decent commission check. And then, incent them with a higher commission for annual prepayments over monthly. But it’s not worth it.

Commission 94

Commission Contract Sales Closing 94

Martech

JANUARY 9, 2024

Influencers who manage their own partnerships will have varying levels of experience and expectations regarding compensation and contract terms. Creators earn commissions for sales generated through their unique links. Get your contract and rules sorted, especially if you need NDAs or input from your organization’s legal team.

Niche 137

Niche Negotiate Contract Legal 137

SaaStr

AUGUST 12, 2020

Q: What are the typical discounts SaaS companies offer for a multi-year contract paid upfront for a 2, 3 & 5 year contract? you have net negative churn), multi-year contracts are worth less. One advantage to 3+ year contracts is they discourage your customers from looking for other solutions, at least, for quite a long time.

Commission 82

Commission Contract Closing Customers 82

SBI

FEBRUARY 20, 2018

For example, our research shows that using Adobe Sign results in contracts being signed 21x faster than using paper-based signatures. Second, once contracts are in play, salespeople can monitor their status and stay on top of every step. We worked with REA Group to transform their manual, paper-based contract process.

Contract 55

Contract Gaming Commission Sales 55

Hubspot

APRIL 4, 2018

This might involve resellers earning a commission on your product or strategic partners bundling in your software with their own. This can be a strong commission, or the fact that it might help them sell their other products more effectively. If things come up, don’t be afraid to ask for an amended contract.

Territory 101

Territory Commission Contract Up-sell 101

SaaStr

SEPTEMBER 15, 2019

Folks that sign contracts and don’t pay!! They signed a contract after all! Let’s talk here about the seemingly most frustrating scenario, the last one — the customer that signs a contract that then doesn’t pay. “They signed the contract!!” They wanted to solve their problem.

Contract 105

Contract Customers Legal Commission 105

SaaStr

JUNE 12, 2022

If you don’t have a sales background yourself, you probably aren’t 100% comfortable with the tensions and incentives in commission-based structures. You’ll hate the idea of a sales rep EchoSigning a contract, and then fading to dark, never to be heard from again by the customer.

Commission 117

Commission Customers Contract Quota 117

Sales Hacker

SEPTEMBER 23, 2021

Their margins are high on your product and you’ll end up paying frequent recurring commissions to sell your product. Once you’ve had the meetings and you’ve signed the contract, the actual work will start. The work isn’t signing the reseller – it’s what happens after you sign the contract. Never before.

Commission 117

Commission Manufacturing Negotiate Contract 117

SaaStr

JUNE 17, 2022

Pay Sales Bonuses When Cash is Received, Not Upon Signed Contract. Which will lead to more cash, more quickly, without spending on commissions before cash comes in. With no marketing costs, no sales commissions, renewals are almost pure profit. Sales reps hate, hate, hate this. But you can a strike quid-pro-quo. A double win.

Commission 123

Commission Finance Contract Engineering 123

SaaStr

JULY 23, 2020

Q: What is a good model for SaaS product sales commission? 500/mo is $6,000 a year so that’s a big enough deal size to support a traditional SaaS inside sales rep: Pay 20% of the expected ACV (annualized contract value) in total comp — but that might mean less commission until they’ve covered their base cost for the month. .

Commission 87

Commission Product Inside sales Contract 87

SaaStr

MARCH 8, 2021

Q: What is a good model for SaaS product sales commission? 500/mo is $6,000 a year so that’s a big enough deal size to support a traditional SaaS inside sales rep: Pay 20% of the expected ACV (annualized contract value) in total comp — but that might mean less commission until they’ve covered their base cost for the month.

Commission 83

Commission Inside sales Sales Contract 83