Prospect willing to pay a 3YR agreement upfront, CRO won't give me full quota relief

Wondering if this is normal or if my CRO is being a hardass.


I'm on track to close the biggest deal in company history, and to make it even better, my champion thinks they'd be open to signing a 3YR agreement and paying it all upfront.


My CRO is saying we can accept this, but that I'll only get 33% of the TCV as quote relief and commission, despite the full 3YR amount hitting the company's account this year.


I'm a bit upset about this, and it feels kind of wrong. Has anyone come across this before and if so how did it turn out for them?

๐Ÿพ Commission
15
CuriousFox
WR Officer
4
๐ŸฆŠ
So your CRO would rather lose the deal instead of paying their rep? Can you go about their head?
endofquarter
Fire Starter
1
EAE
Well worst case scenario the prospect can actually pay the 3YR upfront, I'll just comped on the first portion of that. Or they'll go with a standard 1YR agreement to start
LateStageSaaS
1
Enterprise Account Executive
That would immediately become a one year deal if it was me. Iโ€™m curious, why would client pay 3 years up front? For a discount? Bc they have budget now that they can use or lose?
TennisandSales
Politicker
2
Head Of Sales
omg.....yeah I would be fucking pissed.

Seriously. Companies are always trying to screw reps out of commission with shit like this.

what is the CROs reasoning for only giving you 33% relief and commission ????
1nbatopshotfan
Politicker
2
Sales
Is there anything in your comp plan on prepayment?
Sunbunny31
Politicker
2
Sr Sales Executive ๐Ÿฐ
^^^ This. Also your manager and up the sales ladder should be fighting for the quota relief in addition, as it hits all their lines. If you have an SVP of sales, s/he should be all over this with the CEO as well.
1nbatopshotfan
Politicker
1
Sales
Thatโ€™s a great point. Everyone above you wants to be paid on full value so they should be rowing the boat the same direction.
endofquarter
Fire Starter
0
EAE
My manny > Dir > VP region went together yesterday and it still got shot down. CRO said we have to still recognise the revenue across all 3 years, versus it all being recognised now
jefe
Arsonist
2
๐Ÿ
That sounds like a load of shit to me. If they pay upfront, YOU should be paid upfront. 100% IMO, but at least 50%+
antiASKHOLE
Tycoon
1
Bravado's Resident Asshole
You should totally get the full term. if they already committed and paid wtf does it matter. they have a guaranteed amount of money, so should you.
SaaSam
Politicker
1
Account Executive
Yeah your CRO is an ass. If all of that money comes in and they sign the contract for that amount of time there's no reason it shouldn't count.

I'd say it's a sign you should look for another place of employment as he's likely just trying to get away with not paying a fat commish and that is a huge red flag.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
So no quota relief, but do you get paid commission on the whole thing? IMO, that is more important.

Will they spread the quota relief over the 3 years?
saaskicker
Celebrated Contributor
1
Enterprise AE
Do you have a multiyear clause in your comp plan when it comes to pay out?

It makes sense to get 1/3rd in quota relief as it's a bit rare to get quota relief in a future year for a multi year deal but you 100% should be paid on it.
SaaSslinger4ever
Fire Starter
0
Sr Enterprise Account Executive
Does your master agreement with the customer have language around Termination for Convenience (TFC)? If so, this could be the reasoning, however; your CRO should be able to comp you each year accordingly.

If no TFC and your comp plan doesnโ€™t have any odd language around this situation, then it sounds like your CRO needs to provide some valid explanation!
ego
Politicker
0
Bartender
Torpedo it. Send him to your competitor and pocket the finderโ€™s fee.
EsteComoEs
Personal Narrative
0
Head of Sales
This was a common sales approach for me at another organization. When getting them to pay for 3 years up front (we called them PUF daddyโ€™s) weโ€™d receive quota retirement for all 3 years AND commission for all 3 years.

So take that to your CRO as part of your business case, that other orgs do it.

If he still stonewalls you, tell the customer you canโ€™t do 3 years and can only do 1 year. The CRO wants 3 years just as much as you, so strong arming him and calling his bluff may be the play.
BarefootDave
Opinionated
0
EAE
Sounds like that's all net new business to me and you should be paid and given credit for all of it.
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