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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.

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

SaaStr

In an ideal world, you’d experience both hyper-growth, and free cash flow from almost Day 1. 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. There are pros and cons to being cash-flow positive.

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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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How to Successfully Shift to Consumption-Based Subscription Models

Smarter With Gartner

Download now: Strategic Roadmap for Accelerating Sales Growth. 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. What is a subscription business model?

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The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)

SaaStr

Pothole #1 – Legacy Sales Commission Plans May Yield Low License Utilization. Says Roberge, “We’re using a sales comp plan that was invented in the 1980s, and it’s causing our customers to utilize their licenses at a lower rate, and it’s causing revenue contraction.”. Enter your email below for the latest SaaStr updates.

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Forging a Career in Insurance Sales — The Complete Guide

Hubspot

Limitless Earning Potential Many insurance sales agents get commission-based income. But here are others: Commission-based Pay Many insurance sales agents work as independent contractors. Lots of Paperwork Documentation is necessary to show the evidence of a contract. Here's why. So what you choose to earn is entirely up to you.