ZVRK

Enterprise Account Executive

Valued Contributor

Quota for ramp deals?

Savages, I`m again asking for you advice :)

I`ve two deals that should close by end of June, both are 40,000+ employees companies which means a solid ACV (I`m in HR Tech SaaS).

The problem is, both customers want to start with lower number of licences, i.e 5-10% of their total workforce in year one, and only extend our solution to the full employee count in year two.

I`m expecting to close a 3-year contract on both, with them committing to have a full roll-out in year 2, after the sort-of POC period of year 1 is over.

Personally, i don`t think there`s anything wrong here - large companies will sometimes want to take a phased roll out approach, i get that.

However, I`m measured on net new business only, so when i close 5-10% of potential ACV in year one, that`s how much quota recognition i get this year.

Should i ask that i get quota recognition for the full ACV, even though the customers will buy 100% of the licences in year 2?

Appreciate anyone with your personal experiences in situations like this one.

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braintank

Politicker

2

Enterprise Account Executive

In previous companies I've worked at they average out the ACV for multi-year deals. So if year 1 is 10K, year 2 is 100K and year 3 is 200K AE get's paid as if it's 103K deal

CuriousFox

WR Officer

0

🦊

Seems easy to comprehend 🥳

HVACexpert

Politicker

0

sales engineer

Wouldn’t that be nice!

What does your contract say? If it’s by when customer pays and they pre pay for the licenses before releasing them maybe that is a way you can execute the order.

ZVRK

Politicker

0

Enterprise Account Executive

The contract says they pay at the beginning of year one for the licenses in year one, then pay at the beginning of year two for the licenses for year two, etc..

Diablo

Politicker

0

Sr. AE

We get paid for what we bring in. So in this case I will get paid for only the number of seats they buy and pay for. Even if it’s a 3 year and not pre-paid, we get paid for that in year 2 (but only the initially closed seats). Our CSM would be lucky chaps here.

Pachacuti

Politicker

0

They call me Daddy, Sales Daddy

Do you plan on being at your job longer than a year? If not, get all you can NOW.

However, if you plan to be there longer than a year, what's it matter? If they add new business next year, that just makes next year' quota easier to attain. I'd love to have business I can forecast coming in over 1-2 years.

Maximas

Tycoon

0

Senior Sales Executive

Frankly speaking, I believe it's fair to wait as the deal will not fully close till the beginning of the second year, once your company is getting paid the full portion then they'll have to pay you the relevant commish.
However, only if you're so sure that they'll commit and extend it for the second one, it won't harm to attempt asking for the whole thing and see how they'll respond!

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