Penalized for a 12 month commitment vs 24/36.. ๐Ÿ“†๐Ÿ’ธ

Wondering if anyone else gets penalized for selling a 12 month deal VS multi-year deals? ย 

By penalized I mean: reduced quota relief, 40% quota credit, ย and 3.6% paid out for a 12 month deal VS 100% quota credit, and 10% paid out on multi-year deals...


๐Ÿง  Advice
๐Ÿ˜ค Conflict Resolution
โ˜๏ธ Software Tech
21
poweredbycaffeine
WR Lieutenant
14
โ˜•๏ธ
Tell us what company you work for so we can all avoid it...and then we'll help you get out.

A deal is a deal...and it should be reversed. Standard reward for 12-months, accelerated rewards for 13+ month deals.
UrAssIsSaaS
Arsonist
6
SaaS Eater
This is fucking crazy and the fact that its a platform for projects makes it even worse - heed @poweredbycaffeineย advice and get out of there
CuriousFox
WR Officer
4
๐ŸฆŠ
Nope not here. ๐Ÿคทโ€โ™€๏ธ
WomenWantMeFishFearMe
Politicker
3
AM
Based off your comments, it seems like a skeezy way for your company to pay you less cash. Tell them to change it, or start looking elsewhere. If you're any good at sales, it won't be hard to find work in this market
FormerStartupJobHopper
Tycoon
2
AE
That blows man. We get rewarded for multi year, not penalized for single year
thebuckhunter
Politicker
2
AE
Sounds like your company isn't financially stable
Diablo
Politicker
2
Sr. AE
That's is a bad structure. We get paid out for multi year.
FattySnacks
Politicker
1
Senior Account Executive
Lmao what? Iโ€™d be outta there in a heartbeat
buckets1
Politicker
1
AE
We get extra commission on multi year...same quota relief through regardless of contract length.
Mobi85
Politicker
1
Regional Sales Manager
Sounds like some straight up BS and your company wants people to leave, get out before you are the last one holding the candle.ย 
Boudreaux
Politicker
1
Regional Manager
I do and my standard term is 60-months, at my previous gig the standard was a 36-moth term. I used to get hung up on it, but aren't they always trying to fuck with our comp plans? Especially when you are killing it. I was never hit as hard as they are hitting you and was paid at 70% on 12-month deals.
FamilyTruckster
Politicker
1
Exec Director, Major Accounts
We donโ€™t get a penny more/less for renewal length ๐Ÿคทโ€โ™‚๏ธ
CaneWolf
Politicker
1
Call me what you want, just sign the damn contract
Wow, you're supposed to be rewarded for multi-year deals, not punished for initial 1-year deals. That is insane.
InQ5WeTrust
Arsonist
1
No marketing, mayo isn't an MQL
This is one of the stupidest quota systems I've ever heard about, sorry for your loss.ย 
SaaSguy
Tycoon
0
Account Executive
So sell multi year deals
whatbeclosing
Member
1
Account Executive
Unfortunately our product is best used on projects, often less than a year long...
SaaSguy
Tycoon
3
Account Executive
Sounds like a bad commission structure then and something to talk with senior leadership about. Sounds like they don't want to pay commissions..
Sunbunny31
Politicker
0
Sr Sales Executive ๐Ÿฐ
I get full quota relief on 12 mo ARR and a bonus for multi-year, though that bonus only applies to 36 mo + deals.ย  All of that is up front in our comp plan, so it's not a surprise.ย  ย If this is how your comp plan is structured and it doesn't fit your solution's use case, it should be addressed by sales ops and management so it best reflects and rewards common selling practices.
whathaveyousoldtomorrow
Opinionated
0
sales
Yes, there's shit comp plans everywhere, but ours is opposite. Quota retirement at 100% for 1-year and 75% for 3-year...ย 
cw95
Politicker
0
Sales Development Lead
Uneducated here - why would that be a bad thing? I get reoccurring revenue but still...?
FinanceEngineer
Politicker
0
Sr Director, sales and partnerships
I have the opposite where I'm at - 100% quota credit for any size deal. 1.25x for a multiple-year deal. Paid on ACV.
7

How many months per year should an AE be allowed to miss his/her quota without losing the job?

Advice
26
Months quota missed :
7% 1 month
17% 2 months
28% 3 months
49% 4 months
72 people voted
6

What major actions would you take on month ends and quarter ends to hit your quota and also increasing the logos of yours from your pipeline?

Question
14
16

FEELINGS- Your commission is annual (ARR) but the customer paid monthly (MRR) and if there is a churn in the next few months, the company will deduct by increasing your quota and taking the equivalent amount $$ from your quota in the next month.

Discussion
17