If your [compensation] plan is aligned with your objectives and your sales team knows what they need to do to earn a great commission, you will be well positioned to attract the best reps, and drive great performance from them.– David Skok
For subscription revenue companies, sales compensation can be a very complex topic. In the SaaS world, a salesperson’s job doesn’t end when a customer signs a contract. In fact, that’s only the beginning! With retention and renewal being the primary focus of any SaaS, it’s crucial to build a compensation plan that motivates the right behaviors and rewards salespeople accordingly.
If you’re a new sales leader, these 5 articles will get you started on your comp plan today!
Incredo‘s Aida Grigoryan kicks things off with a brief explanation of SaaS commission and what “normal” commission looks like. The tech giant’s resident wordsmith also shares her 6 SaaS commission golden rules before closing out with 8 steps for creating a high-performing SaaS sales team. New SaaS leaders, start here!
Asking “what’s a typical commission for SaaS salesperson?” is like asking “how expensive should I price my SaaS product?” or “how long should I spend on developing my software?”. To answer your questions correctly, we need to ask for clarification and more details about your software, its complexity and company goals.– Aida Grigoryan
Bonfire Ventures‘ own Brett Queener authors this simplified SaaS sales compensation roadmap. The 13-minute piece is organized into 10 “rules” and justifies its length with brilliant perspectives and profound observations. While not entirely short, it certainly is sweet!
From a cash accounting perspective, the pay-out the rep for on-premise and on-demand software is not that different if at all. In fact, it’s often the same.– Brett Queener
Renowned SaaS guru David Skok shares his unique take on SaaS compensation. Complete with a collection of helpful charts and graphics, this article doesn’t just teach readers how to build a compensation plan but instead focuses on how to build the right plan. Not sure how to figure out which plan is right for you? Skok shows you how!
When we’re designing sales compensation, the goal is to align sales behaviors with the desired business objectives. Therefore, the process should start with identifying your key business objectives.– David Skok
SaaS sales compensation is changing, and 2020 is projecting the biggest change yet! Thanks to The Alexander Group, a downloadable copy of 2020’s emerging compensation trends is finally here. Just put in your name and email, and you’ll have it in seconds. And the best part? It’s totally free!
Sales leaders expect sales revenue to grow 6% in 2020. 2% was the median increase in incentive payments to sales personnel in 2019, less than the planned 3% increase anticipated at the beginning of the year.– The Alexander Group
Last but not least, our own Anna Talerico put together a helpful Annual Sales Compensation Letter Example. Perfect for any sales leaders feeling overwhelmed as they tackle their first comp plan, this fully-customizable letter is totally free for download. Get started today!
There are endless ways to go in and improve your SaaS compensation plan. But there are only a few ways guaranteed to drive measurable performance from your reps and subsequently your bottom line.– Karrie Lucero
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!