M
M

M4rx

Senior Account Executive

Opinionated
Member
Good Citizen
+2

What is your definition of an upsell?

Hello Warriors!


Now this is a fairly simple question, but with some added baggage.


"An upsell is offering a higher priced option to a potential client or a current client."


I had a client that signed up for the cheapest plan we offer 9 months ago. Their engagement ended 6 months ago(software services product). Now they came back to me 2 months ago and wanted to purchase our most expensive plan. Technically, they would be considered a previous client, and this would be a new sales opp, right?. The reason I ask is that our commission structure is significantly different for "new"(8%) sales vs "upsells"(2%).


My question is: Would you consider this as a new sales or an upsell?

🍾 Commission
😍 upsell
13

13 comments

Sort by:
Gasty
Notable Contributor
7
War Room Community Manager
When you say "their engagement ended", I'm suspecting you mean they did not renew. If that's the case, it's New Business. Congrats on the 8%
Filth
Politicker
4
Live Filthy or Die Clean
I'm with @Gasty, contract ends, new one begins = NET NEW BABY!
braintank
Politicker
3
Enterprise Account Executive
Agreed. If they churn and you booked a new deal then you could argue net new.

However, your comp plan may have a clause that says if churn and new bookings are within a date range they don't count as new.
CuriousFox
WR Officer
2
🦊
ExIsTiNg 😒
HVACexpert
Politicker
1
sales engineer
My vote as well is existing , but depends on company definition.
oldcloser
Arsonist
4
💀
I can't believe there are no clear rules on what qualifies for the better comp. Are you the first to bring this up? There has to be precedent. Find it. If it's favorable, build your case. If it's not, suck it up and move on.
Diablo
Politicker
3
Sr. AE
I am in the similar environment. If contract ends without renewal and they come back to start fresh it’s new. Get that 8% man!
Kosta_Konfucius
Politicker
0
Sales Rep
I would assume this is an upsell, however I would confirm this with your team and their definition of it.
Justatitle
Big Shot
0
Account Executive
If they churned and now are coming back, depending on your orgs rules of engagement it is most likely a new opp spending a lot more money and net new
AnchorPoint
Politicker
0
Business Coach
HATE the phrase. "Upsell" sounds like we are taking advantage or manipulation. We should always prevent and promote the best solution to solve the client's pain.
Maximas
Tycoon
0
Senior Sales Executive
A new sale to me as long as their commitment to the old contract is done already as a Re-Signup!
Armageddon
Opinionated
0
Enterprise Account Executive
new committed revenue, whether it be from expanded usage of existing product or net new product
DataCorrupter
Politicker
0
Account Executive
New sale

Related posts

10

AE vs. Upsell only role?

Question
☁️
📬
🎯
15
5

Upsell organization for AEs

Question
📈
💉
☁️
5
Bravado is a community of trusted sales professionals endorsed by their customers.
Apple Store logo
Products
The War Room Jobs Salary Guide Tech Sales U
Company
About Us How It Works Blog Bug Bounty
Contact
Press Careers
© 2024 Bravado Inc. All rights reserved.
Privacy Policy Legal and Privacy Center Sales Jobs
If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.