sfdc profile picture
sfdc profile picture

sfdc

Sales Manager, Enterprise

Catalyst
Valued Contributor
Opinionated
+4

Comp plan - consumption business

Wondering if anyone has had experience selling in a business where revenue is consumption based? e.g. customer consumes X volume/amount of your product  per month and are charged accordingly?

If so, how did you comp your reps/how were you comped?

Were deals valued based on an ACV/consumption forecast or based on actuals per month/period?
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8 comments

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GDO
Politicker
2
BDM
total volume or total margin at end op M/Q and then a percentage.

I also had a totally arbitrary point system once. Quite funny since I got more commish when giving a price cut :D
sfdc
Catalyst
1
Sales Manager, Enterprise
Got it! So basically paid reps a % of actual booked revenue over a period rather than at contract signature?
GDO
Politicker
1
BDM
correct!
sfdc
Catalyst
1
Sales Manager, Enterprise
Ok awesome thanks mate.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
Like # of minutes per month when people sold long distance or pre-all you can eat wireless plans? You had to manually reconcile at the end of month.
Beans
Big Shot
0
Enterprise Account Executive
I sold Med Dev consumables, I was comped on total sales, the device itself and the follow-up usage consumables, at the same % rate.

We of course would forecast the expected consumables month over month after install, and were expected to hit/grow the usage.
DataCorrupter
Politicker
0
Account Executive
I had ACV/consumption forecast at a former company. The customer used X amount in Q1 and the company made the consumption projection for the year. The downside was that if consumption fell off in Q2, there was an odd sort of clawback. If the project got bigger each quarter, and the projection larger, then I got paid more each quarter for the additional revenue. This system had lots of upside, but man, the clawback was a bitch.
Kosta_Konfucius
Politicker
0
Sales Rep
Paid consumption amount projected on quote, then taken average on first 3 months, you get clawed back or paid more based on the change

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