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Annual Contracts: Maybe Not All They Are Cracked Up To Be

SaaStr

An annual contract gives you 365 days or so to fix that. I’ve long been a vocal proponent of annual contracts. Close say a $125k contract, even after a healthy sales commission, that’s $100k+ in the bank right now! Annual contracts require P.O., This is still true. More on that here.

Contract 101
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Dear SaaStr: Are Clawbacks in Sales Applied if the Customer Has Paid in Full?

SaaStr

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. And the first time a medium-size customer doesn’t pay, it will create stress with the rep, probably their boss, finance, etc. Ah, clawbacks.

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How to Build Sales Compensation Plans that Increase Retention and Productivity

Sales Hacker

Meanwhile, finance-owned plans yielded the least confidence or trust in the plans. Commission plans should be so simple that someone could explain it to you in about 15 seconds,” said Bruno. Going from 10 percent commission to 11 percent isn’t likely to encourage someone to overperform. Compensation design principles.

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Sales Compensation Plans: Complete Guide + Examples

Salesforce

It includes their regular salary — typically calculated as annual pay — and other financial incentives, like commissions for sales and bonuses for reaching targets. These plans usually specify base salary, commission rates for sales made, and bonuses for hitting or exceeding sales targets. What are sales compensation plans?

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7 Simple Steps to Getting to Cash-Flow Positive Faster (in SaaS)

SaaStr

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. Whatever it is, that extra bit is the cheapest financing of your business you’ll ever get. Sales reps hate, hate, hate this. A double win. We aimed for 120%.

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How to Successfully Shift to Consumption-Based Subscription Models

Smarter With Gartner

Term-based contracts’ costs are fixed and based on access not usage. A new contract results in a new revenue stream, but the resale opportunity occurs at the end of a predetermined time period, not the product’s end of life. That complicates efforts to set upfront sales commissions proportionately. Clarify sales roles.

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These are the 5 best data-backed sales tips of 2021

Gong.io

Or they might ask a (seemingly) innocent question like “Does your finance team allow net 60?”. Reps use those phrases all the time, but they’re a disaster for your booking rates (and win rates… and commission…). The due diligence crowd : Budget approvers, legal/contract reviewers, and procurement analysts . Don’t bite. .

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