fidelcashflow profile picture
fidelcashflow profile picture

fidelcashflow

Account Executive

Catalyst
Opinionated
Valued Contributor
+4

New logo AES: How does expansion/up sell work for you?

From my experience, the norm is that you own the account for the next 12 months after close and get comped on 100% of the new ARR that you close. What is everyone used to? If I didn't list your option, comment below. 

*if you can't see the options below because of mobile, please note that I mean you own and work the account yourself for that expansion on the last two options with no csm/am involvement. % VS getting all the arr towards your #

How are you comped on Expansion/Upsell?

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😒 Quota
🔥 Revenue
📳 SaaS
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20 comments

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medhardwaredr
Opinionated
3
Director of Sales NA
We own indefinitely. Managed named accounts
oldcloser
Arsonist
1
💀
Building this out as we speak. Our CS team is highly engaged post implementation, so they'll find new opps over time. Often the seller sees an immediate path, but doesn't get it all done. Plan is: Sales hands off a roadmap to CS. Anything on that initial doc is 90/10 for 6 months. After 6 months, it flips to 90% for CS.

Haven't implemented yet, but will report. Feel free to poke holes.
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
I like this plan but wouldn’t flip it all the way to 90 after 6 months. Sure pushes rep the close quickly, but could drive poor behavior. Instead I would do 50/50 6-12 months and then either 90 or 100% to CS after 12 months.
fidelcashflow
Catalyst
1
Account Executive
In this regard of 50/50, who is running the sales cycle on the expansion?
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
Sales would run point for 1st 12 months.
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
You could take this a step further if you wanted to incentivize multi year deals and only allow for this 12 month carry over if they get a 2+ year agreement.
fidelcashflow
Catalyst
1
Account Executive
So I would run point on the sales cycle and I only get half of it towards my number?!
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
Would you prefer to hand over control to CS?
oldcloser
Arsonist
1
💀
Thought this through 10,000 ways. Obvious upshot is deals close faster. Side benefit is the disco gets more thorough. Seller can list any probable path to revenue they can think of, but have to do it in the first cycle.

In reality, after 6 months from initial execution, my sellers barely remember who their past deals are. We’re in a weird vertical. FTEs 10-500 which is SMB, but their annual rev at $50M - $1B. Sort of transactional but not. Cycle is 90 days, but 1 of 10 is a 1-2 call close.

Point being- sellers are way down the road at 6 months. Not sure what neggy behavior this could foster. All ears as always though.
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
What’s your implementation timeline?
oldcloser
Arsonist
1
💀
14-60 days depending on the sale
Revenue_Rambo
Politicker
1
Director, Revenue Enablement
Given all that additional context your plan makes a lot of sense. After 6 months they are moved in customer had been live. That 10% basically equates to a finders fee 👍
oldcloser
Arsonist
1
💀
Yep- how I see it too. Thanks revSensei
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Similar to what we have. As a new logo rep, if I’ve identified expansion through strategic discussions, but they are phase 2 - I get paid out 50% of a close w/in 6 mos.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
In my org you basically own the account indefinitely. But that's not the norm in the SaaS world of Hunters and Farmers.
SalesBeast
Politicker
1
Sales Leader
Small company here. We land it in new bus, keep it and stay the AM, and get to keep all the commissions for life of account. But I am also only sales person. So play AM, AE, CS, and all other roles. I’m at a startup.
fidelcashflow
Catalyst
2
Account Executive
This makes total sense and I'm in the same boat. I was at a larger company before and you keep the account for life until there is a re org. Which would be 1 time per year and it was fair and at random. You might lose an account because it went up a segment or it just routed to someone else because of xyz but then you also had the opportunity to inherit a different account in the same fashion
jefe
Arsonist
0
🍁
I think this is often the case for small/new shops
CuriousFox
WR Officer
1
🦊
But only for 12 months. Double edged sword.
BigShrimpin
Catalyst
0
Account executive
I get arr for planned increases but only if i had a hand in them or they were committed to in cycle which i think is pretty fair considering how much work our csms do

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