As it says above ๐ย
SaaS for avoidance of doubt
cornerback16
What should you be paid on $10m TCV 5 year deal ($2m ACV)?
What % of TCV?
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I've been paid 10-12% on the ARR + 3% on the TCV. But it's highly industry dependent.
Anywhere from 5-10/12 on ARR is what I've seen, and then 3% on TCV would be solid but not necessarily common.
Yeah, i have seen around 10% of ARR with increases up to 15% total based on locked in multi-year deals. However, only the ARR matters for accelerators and quota.
Usually itโs only a matter of first years revenue, that said if you are managing the client as well that should be considered
Hate to say, but depends on your industry/situation. If itโs Salesforce you sell for, probably on the lower side of % because itโs always a machine of a company. If itโs a series A company and you just tripled their yearly revenue, then much higher. Hard to say without that important context.
I just landed a big one and 5% is going my way and voted accordingly - not sure how that sizes up to the community. On the regular deals I have a 10-20% range based on a few different metrics.
Nice!
I wish I could say you should get paid the big bucks for this (and you probably should) but I know that in reality you're probably in the <3% unfortunately. And it will probably only be on Y1 revenue since the company makes it money on subsequent years.
For ARR you almost always only get paid on first year, and then regular rate for expansion and uplifts.
The answer is
Depends on your industry, you CAC, the cost of delivering business.
What I can say is, if your business is a standard SaaS product with a 30-40 CAGR, you should be looking at 8-10% on first year and 3-5% on all following years
- Low End: $400,000
- High End: $600,000
Judging by the fact that itโs a $2m p.a deal for 5 years makes me believe itโs not SaaS but hope this helps
Depends on your industry, you CAC, the cost of delivering business.
What I can say is, if your business is a standard SaaS product with a 30-40 CAGR, you should be looking at 8-10% on first year and 3-5% on all following years
- Low End: $400,000
- High End: $600,000
Judging by the fact that itโs a $2m p.a deal for 5 years makes me believe itโs not SaaS but hope this helps
10% is standard for any SaaS that Iโve sold. Maybe other enterprise teams work differently but software is high margin and pays well for a reason.
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