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Commission on monthly payments?

Hey everyone!


New AE in a SaaS org here. Our team struggle with deals going monthly rather than annual. We don't get paid commission on deals that choose monthly, only annual.


Wondering what it's like for others out there and if they also only get paid from annual?


Of course, any tips on ensuring annual is very welcome!

πŸ“ˆ Closing
☁️ Software Tech
πŸ’° Compensation
3
SaaSguy
Politicker
+5
Account Executive
If you aren't getting paid on deals that close monthly why are you even offering that option?Β 
airpistols
Account Executive
I don't get paid commission if a prospect decides to sign up for a monthly subscription rather than an annual subscription.Β 


The issue that occurs is prospects will work with reps to gather information and then sign up for a monthly subscription online without telling us. The reps don't get paid because the 'customer' is not "locked-in".

Doesn't happen all the time but happened to my team a lot yesterday so am wondering if people see the same. We avoid mentioning monthly options obviously.Β 
SADNES5
Politicker
+6
Hittin' Dingers
Sell the annual πŸ˜‚.

We can do monthly, but to started x y and z. Having us locked in for a year means I can push for a better sign-on/renewal price; when you're up for renewal - we can leverage the "long term" relationship at that point for an even better deal.Β 

I can get you locked in for a 3 year term? Or you want to trial with a 1?


- I have removed the monthly option by giving them a 'choice' between a 3 yr which they won't want and a 1 year.Β 
airpistols
Account Executive
This is what I'm talking about. Sounds like you're creating the element of choice. How do you downplay the monthly option?


SADNES5
Politicker
+6
Hittin' Dingers
State that it's the worst option. For the price of 2 months... We can get that quarter on lock. 6 months is a full year. Or whatever the pricing works outΒ 
Bittersweet0326
Politicker
+5
Digital Business Associate
As in you don't get commish at all or you don't get it until the year mark? If you don't get it at all I'd completely eliminate that from my offer unless it's crunch time at EOM or something.
airpistols
Account Executive
I was referring to monthly vs annual subscriptions.Β 

I get commission quarterly on deals with annual subscriptions.Β 
Salespreuner
Big Shot
+11
Regional Sales Director
We get is quarterly and for large ones, monthly
Ace
Arsonist
+9
CEO
Mostly it's quarterly
Chep
WR Officer
+10
Business Development Team Lead
That seems unfair you don't get commission on Monthly deals.Β 
airpistols
Account Executive
I see where the company is coming from as they can't forecast as well on annual deals. The issue is when a large deal opts for a monthly subscription last minute. The company won't let us reach back out because they're "already a customer"
Chep
WR Officer
+10
Business Development Team Lead
That does make more sense, but that is brutal you can't reach back out if they switch up on you last second like that
kelun8
Politicker
+4
AE
My commission is a make up of ARR, upfront cash payments, and multiyear deals. If they pay monthly, I don’t get that cash part of commission, if they pay quarterly, I get 1/4 of the ARR so we’re encouraged to sell annually. I usually say β€œit’s a stardard one year minimum Saas agreement with upfront payment”. I’ve only closed 1 deal so far of about 15-18 that’s paying quarterly.

Our pricing is listed on our site that the price is based on annual upfront payments, so if you do monthly then it will be a different starting price. This way at least I can get paid more on the ARR piece.Β 
6
Commissions... quarterly or monthly?
Question
6
Would you rather receive your commission quarterly or monthly? M
So
+30
Sourpatch100 , Β  Grignou , Β  Red5 Β  and 30 people voted
*Voting in this poll no longer yields commission.
5
Are your comms paid on MRR rather than annual contract value?
Question
14
8
Lower % commission paid upfront or higher % paid monthly for 12 months?
Question
11
Lower upfront or Higher over 12 months?
+116
BillyHoyle , Β  Beans , Β  Swand Β  and 116 people voted
*Voting in this poll no longer yields commission.