EspressoMaxi profile picture
EspressoMaxi profile picture

EspressoMaxi

Director of BD

Valued Contributor
Contributor
Fire Starter

600K deal with a 2 year contract

Hi Bravado Soldiers,


I have a 600K deal out, just waiting on an MSA to be signed. Curious how you would classify this deal based on the structure:


600K paid Monthly for 2years.

The first month's payment is due within 3 days of signing.


Is this a 600K deal? is this a 25KMRR? The way my org notates this in the pipeline is wish washy. Wondering if there is a standard procedure.

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17 comments

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Kosta_Konfucius
Politicker
2
Sales Rep
Congrats on the deal! Curious are you interviewing or why are you wanting to know how its classified?

From not knowing much I would say this is 600k deal or 600k TCV
EspressoMaxi
Valued Contributor
2
Director of BD
Yes interviewing...and so it's important to classify my performance if asked.

I also agree with the 600K TCV - that's the best way to describe it.
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
TCV = $600k so that is how I'd categorize it (at least on my resume). However when your company actually recognizes the revenue may be different - monthly or even annually.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
It's a $600K TCV deal. You could say it's $300K ARR if you are interviewing and you're being asked.
TennisandSales
Politicker
1
Head Of Sales
It totally depends on how the company looks at things. i think it’s REALLT common to judge it by ARR. so this would be a $300k ARR deal that is a two year commitment.
ThatNewAE
Big Shot
0
Account Executive - Mid enterprise
ARR, yes. My company pays out incentives too based on ARR, not on ACV.
Justatitle
Big Shot
0
Account Executive
I have a quarterly ARR quota, so if I closed a 600k deal it would take care of my yearly number, I get paid on my deals once my company gets paid though so I’d be getting paid monthly
GingerBarbarian
Opinionated
0
Lead Sales
Each org may be different when it comes to how they classify it based on their goals. In SaaS a lot of companies are judged on MRR or ARR, so they may be more focused on that as opposed to the total contract.

However, in an interview simply saying you sold a 2 year contract worth $600K contract is probably better.
sugardaddy
Politicker
0
🍬
Congrats!
activity
Politicker
0
VP, Business Development
I would use the ACV/TCV of the deal and talk through it.
payton_pritchard
Executive
0
RSM
I would go by ARR, unless there's a shorter term or some sort of month to month option (not the case here)
CadenceCombat
Tycoon
0
Account Executive
Well done!
PGC007
Good Citizen
0
president
The most important question. Is the MSA non cancellable, meaning it’s a true $600k TCV / $300k ACV deal as stated above with no get out clauses? Then you can claim with honesty you’ve signed a multi year deal.
Baylor24
Executive
0
Senior Account Executive
The deal should be classified how your get paid. Either ARR or TCV. Is it 600k per year or over two years?
Armageddon
Opinionated
0
Enterprise Account Executive
LETS GO!!!! congrats EspressoMaxi! Gotta feel good to kick off 2023 with that big one
Armageddon
Opinionated
0
Enterprise Account Executive
Regarding your question, I'd call it 300k ARR for a 2 year commit. I think that translates best to SaaS industry as a whole.

As a side note, my company also recognizes deals based on MRR, but I always convert to ARR when discussing with others
CuriousFox
WR Officer
0
🦊
What was the outcome?

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