H
H

hocktony

smileNdial

Big Shot
Opinionated
Valued Contributor
+5

(Enterprise AE) New commish structure, fair?

saas, one and done(cs takes over after)
1.2mm annual
100k monthly
resets monthly;
- average 10% under 1.25x quota, then 20% over 1.25x quota
average deal size 45-65k
historically 3 deals/month is a good month
base is lower end of average for mid market/enterprise 


is this fair, and what are y'all getting in the saas world?
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JustGonnaSendIt
Politicker
2
Burn Towns, Get Money
My SaaS quota is a component of a larger quota that's evaluated quarterly/annually. So not an ideal comparison.

But the way it works for me is:
- Base commission rate until 100% annual quota (calculated as Commission component of OTE / value of quota)
- 2x Base commission rate until 250% annual quota
- 1.2x Base commission rate over 250% annual quota

Also, multi-year deals count against quota as 100% credit for Y1 and 75% credit for Y2 / Y3. So for example it's 2.5x ACV in credit against this year's quota (and for compensation purposes) for a 3-year deal that has a flat annual rate.

Average SaaS deal size for me is 150K - 200K

The two comments I have for your plan is... I would kick in accelerators at 100% quota and you should look for a way to incentivize multi-year agreements in terms of rep compensation.

For SaaS companies, having the multi-year commitment really helps with valuation, making the bosses happy.
hocktony
Big Shot
3
smileNdial
Thank you very much. This is great insight! Nevermind the previous question, you answered it and it was very valuable thank you again!
JustGonnaSendIt
Politicker
1
Burn Towns, Get Money
That's right, kinda.

The way my commission is calculated is in terms of dollars retired against one big lump quota that applies to everything I can sell.

So, if I sell a 100K annual subscription deal with a 3-year commitment, I get 250K of quota credit for THIS YEAR's quota. And then I get paid on that this year, yes, depending on what accelerator bucket I'm in.

It's all front loaded as a way to incent reps to sell multi-year, rather than just renewing every year and booking a new deal. Again, the multi-year is a great valuation aid for companies selling SaaS or any kind of subscription services.
hocktony
Big Shot
1
smileNdial
Love it, this is great, thank you! This is exactly why the WR is the best! I wouldn’t be able to find this anywhere else
bluebirdsonly
Fire Starter
1
Enterprise Account Executive
Depends on your package..!
hocktony
Big Shot
0
smileNdial
How does the commission structure compare to yours?
It’s changed so much yoy, no idea what to compare it to.
bluebirdsonly
Fire Starter
1
Enterprise Account Executive
If the majority of reps hit their monthly and annual numbers I’d say this isn’t the best package. If however the majority don’t make Pclub then this is pretty good.
My five cents - once you get to 100% of annual attainment you should get some much bigger kickers. I’ve been at 7% for first 50% of annual quota, then 11% for 50-100% and the accelerators have been aggressive. When I got to 200% (oh to go back) I was making 24% on every deal.
Monthly resets actually limit you to overachieve and smash your OTE. Unless I’ve missed the boat.
I think it’s pretty fair, not the worst whatsoever!
hocktony
Big Shot
0
smileNdial
I really appreciate your insight, and I hear you, I can see how monthly restricts blow-out months, although possible, I’ve found it leaves me with barely a deal a month for a few months till I refill my pipe.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
It’s so hard to “judge” a comp plan without knowing the product being sold, the industry, and a bunch of other questions.
That said, I don’t like the monthly reset. You’re going to have great months and lousy months. It would be nice to average them out over a quarter or annually.
Like what if you have a couple 20-50% months and then a 250% month? What if you’re working a couple whales which take 8-12 months to close?
The comm. structure seems good though, especially if you hit that accelerator.
hocktony
Big Shot
0
smileNdial
Great input, thank you!
Isliceonpurpose
Valued Contributor
1
Senior Sales
Why is this so complicated?
hocktony
Big Shot
0
smileNdial
Good question, fairly similar structure to previous compensation plans so it’s straightforward to me. How would you structure it/what do you have in your role?
Jewcan_Sam81
Politicker
1
Account Executive
Pretty straightforward I’d say, and honestly not the worst I’ve ever seen
hocktony
Big Shot
0
smileNdial
Appreciate it!

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