nevercoldagain

Account Executive

Lower % commission paid upfront or higher % paid monthly for 12 months?

My team sells monthly deals and has recently been given the option to sign annual agreements paid upfront for a discount. VP has asked us if we want the commission on these upfront deals to get paid out all at time of close at the regular % or stretched out over 12 months (like the regular monthly deals) at a higher % than normal. The higher rate is about 50% more.

What would you prefer?

Lower upfront or Higher over 12 months?

Attached poll

Lower upfront 50% more over 12 months

*Voting in this poll no longer yields commission.

💰 Compensation

🧠 Advice

11 comments

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BmajoR

Arsonist

Account Executive

Neither. Annual agreements with the same value upfront as you would get over 12 months.

You'd be a fool to let them give you 50% less because you want it up front. We just switched our comp plan to up front instead of over 12 months and we don't lose a cent. So, your VP is an asshole.

nevercoldagain

Opinionated

Account Executive

We live in an MRR world here where deals are paid out at a flat % for the first 12 months, totalling a flat % for an "ARR" amount. But I come from an ARR background where commission is paid out at time of paid invoice.

This would be a scenario which might happen 20% of the time based on client preferences. Probably worth noting that this would likely be the case for the whales over the small ones. So the occasional deal could be paid out at close or at a higher rate depending on what we as a team choose as our preference.

BmajoR

Arsonist

Account Executive

I see. In that case, bide your time and take the long ride for full value.

goose

Politicker

Sales Executive

You'd be a fool if you think you'll get the total commission if you leave. This seems like a good way to keep reps longer and save some money.

LordBusiness

Politicker

Chief Revenue Officer

There is no real reason to get paid less, unless you are 1) thinking about leaving 2) need some cash right now for personal reasons

nevercoldagain

Opinionated

Account Executive

Totally agree unless I close a big one and then need to leave part way through the payout schedule. Or if I think I can get a better return by investing the cash right away

CuriousFox

WR Officer

🦊

What happens when you leave in 6 months?

DungeonsNDemos

Big Shot

Rolling 20's all day

Asking the real question 👀

goose

Politicker

Sales Executive

Poof...

AlecBaldwinsHairline

Valued Contributor

Head of Sales Development

It's like taxes - get as much money now and worry about the consequences later. That money is way more valuable in your hands now than later.

You can find ways to make better investments and have more control of the money NOW should you choose to leave later.

poweredbycaffeine

WR Lieutenant

☕️

Pay me for the full amount of the deal at the time of signing (or whenever your catch period is on closed business). Don't play games with me because you're cash-poor.

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nevercoldagain

Lower % commission paid upfront or higher % paid monthly for 12 months?

Lower upfront or Higher over 12 months?

11 comments

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