SaaStr

SEPTEMBER 5, 2024

Dear SaaStr: How Should I Pay Sales Reps When Our Customers Pay Monthly? There are basically two options — really three, by blending the two: The first is to pay monthly commissions. I.e., if you pay the reps a 10% commission on what they close … and the customer pays say $500 a month … you pay the rep $50 a month.

Commission 114

Commission Customers GTM Contract 114

Hubspot

SEPTEMBER 6, 2024

Even when talks progress all the way to a signed contract, they will never be as engaged as they were in that initial moment when a problem arose and curiosity about your solution struck. Armed with the right solutions, you can increase efficacy, improve efficiency, and exceed your quota — and yes, enjoy those commission accelerators, too.

Closing 80

Closing Contract Technique Sales 80

SaaStr

JANUARY 28, 2023

Dear SaaSt: Do sales commission clawbacks typically apply after a customer’s payment has cleared (e.g. Some customers won’t end up paying — but not that many. Yes, you can and should clawback the sales commission on those deals. A critical difference in mentality, and in the end, customer behavior as well. “opt

Commission 107

Commission Customers Finance Contract 107

Sales Hacker

MAY 9, 2019

It needs to provide fair compensation to employees in customer-facing roles. It needs to incentivize specific behaviors and actions that suit the needs of both the company and the customer. Decide Base Pay vs. Variable Pay (Commissions). Create a 2-Page Contract and Get Mutual Commitment [TEMPLATE PROVIDED].

SQL 110

SQL Commission Customers Non-Profits 110

Veloxy

AUGUST 6, 2021

These are calls where the deal gets moved across the line, contracts get signed and reps earn their commissions. Depending on why you want the prospect as a customer, try to learn more specific things about them. But for that to happen, you need to know what your ideal customer looks like. 3: Build a Great Rapport.

Cold Call 328

Cold Call Pipeline Prospecting Follow-up 328

Hubspot

AUGUST 27, 2024

Increased Conversions AI-powered pricing strategies can help increase online conversions from browsers to buyers by predicting what a customer will pay based on their previous purchasing behaviors. It is pivotal for modern businesses implementing AI pricing strategies to adapt their pricing in real time to maintain customer loyalty.

Price 72

Price Profit margin Contract Retail 72

SaaStr

SEPTEMBER 15, 2019

As you begin to scale and add a sales team, you’ll encounter more and more drama with “bad” customers. These so called “bad” customers from a sales team perspective will include: Folks that share licenses that shouldn’t be. Folks that sign contracts and don’t pay!! Thank them.

Contract 106

Contract Customers Legal Commission 106

SaaStr

JUNE 12, 2022

But I knew this was the wrong way to build a customer-centric company. There was another one I hated on the Customer/Client Success side. And that was customer success managers who were really just farmers — compensated 100% or close to it for Upsells, not Retention. These guys — I don’t know.

Commission 114

Commission Customers Contract Quota 114

Partners in Excellence

APRIL 4, 2014

It seems attention spans and communications are contracting and getting abbreviated. They had articulated one of the most critical issues facing their customers, developed deep insight about the issue and had some outstanding ideas. Is this the way you deal with customer conversations?” Customer I did too!

Conversion 104

Conversion Customers Quota Commission 104

SaaStr

MAY 27, 2021

Q: Dear SaaStr: How Do I Convince My Customers with Monthly plans to Upgrade to Annual Plans? Large customers only pay via invoices, especially for any deal of any material size (>$10k a year). The smaller the customer, the more important micro-cash management is. You can’t change the way your customers want to buy.

Contract 96

Contract Customers Commission Price 96

SaaStr

JULY 31, 2024

In the early days, when Cash is King, pay the sales reps a full commission on all cash paid up-front. We had churn, but it wasn’t due to contract expiration). After all, why would a customer prepay multiple years, if not for a substantial additional discount? It’s what I did. What happened? Some folks did crazy deals.

Commission 110

Commission Contract Quota Customers 110

A Sales Guy

MAY 10, 2013

I billed them for performance commissions I had earned per the contract. The problem was, in spite having met the commission terms of our contract, we were no where close to where we wanted to be from a sales perspective. I went into robot mode, commission trigger pulled. Customer Service' What did I do?

Commission 113

Commission Contract Clients Service 113

Veloxy

DECEMBER 28, 2023

Successful outside sales requires strong communication and problem solving skills as well as flexibility to navigate autonomy, build customer relationships and execute the sales process. The effectiveness of outside sales representatives is deeply rooted in their skill to create and uphold direct relationships with potential customers.

Outside Sales 242

Outside Sales Cold Call Represent Objectives and Key Results 242

SaaStr

SEPTEMBER 14, 2021

Every customer you close, the next day, is at some risk of churn. A month-to-month customer can basically cancel anytime. An annual contract customer can sort of cancel anytime, but that churn probably won’t show up for the better part of a year, even 2 or 3 (more on why Year 3 is the biggest risk for bigger customers here ).

Customers 22

Customers Commission Contract Closing 22

SaaStr

MARCH 27, 2023

When they have to give back some of their commission if a customer cancels early. Tracking-to-Cash , i.e. paying commissions once cash is received, not just once the deal is signed; and A Low Base Salary, No Matter How Much They Make. They don’t want any risk they have to give back part of a commission.

Commission 114

Commission Contract Cross-sell Sales 114

Sales Pop!

AUGUST 16, 2023

False advertising refers to a misrepresentation of a product or service, often through misleading or unproven claims, as defined by the Federal Trade Commission. In the United States, the Federal Trade Commission (FTC) oversees advertising practices to prevent misleading claims.

Legal 130

Legal Commission Government Contract 130

SaaStr

JULY 22, 2020

Commission that is a Relatively Low % of the Dea l. Almost Complete Hand-off of Customers to “Others”, Customer Success, Account Manager, etc. Almost Complete Hand-off of Customers to “Others”, Customer Success, Account Manager, etc. Very little post-sale involvement with customer.

Commission 145

Commission Quota Inside sales Sales 145

SalesBlog!

APRIL 26, 2022

“You could always not get paid”, “Your commission will be cut if you don’t…, You screwed up… which cost me. Maybe even experienced the commission cut. After finally finding and selling a client to only have that hard earned commission threatened… not for me. Don’t offer up your commissions so easily.

Commission 52

Commission Non-Profits Government Contract 52

SaaStr

JANUARY 1, 2022

SaaS startups, especially those that sign customers to annual customers, will have customers that want to cancel those un-cancelable contracts and get a refund. Even customers that pay monthly on credit card will sometimes ask for a pro-rated refund for the most recent month. You signed the contract”.

Product 111

Product Contract Commission Customers 111

SaaStr

FEBRUARY 24, 2019

Recently for the SaaStr Annual, we were “the largest customer” for 3 vendors. We were larger in utilization than their current “largest” customer (who was a much bigger company and slightly bigger event). He or she probably got paid her full commission. The champion’s favorite vendor.

Customers 110

Customers Commission Referrals Contract 110

Hubspot

OCTOBER 16, 2017

Commission only. Base plus commission. Absolute commission plan. Relative commission plan. Straight line commission plan. When to pay commission. For instance, if you want your reps to prioritize renewals over new business, give them a bigger commission for the former. Commission only.

Commission 101

Commission Quota X-functional Non-Profits 101

SaaStr

OCTOBER 26, 2021

Generally, track to the cash: If a customer has signed a pre-paid annual or multi-year contract in exchange for a discount or other terms, then there’s generally no reason to return any pre-paid cash. The contracts are generally not cancellable by their terms, and so you keep the cash. Are you going to sue the customer?

Contract 107

Contract Commission Product Customers 107

Hubspot

DECEMBER 12, 2017

It can be accessed online, easily customized, and is serviced and supported by the provider’s own product engineers and customer success team. From commission to sales cycles, models, and metrics, you’ll learn the different ways of selling this unique software and what you can expect from the job. SaaS Sales Commission.

Commission 101

Commission Contract Sales Price 101

SaaStr

JUNE 22, 2021

Q: What is the better SaaS sales compensation plan: paying reps the 12 months up front for the contract value or paying them pro-rated 12 monthly payments? It just takes too long to build up a decent commission check. And then, incent them with a higher commission for annual prepayments over monthly. But it’s not worth it.

Commission 98

Commission Contract Sales Closing 98

Sales Hacker

APRIL 19, 2022

Dooly, a customer information sales enablement platform, found that 51 percent of sales professionals said they’d quit if they found an opportunity with higher pay. Related: How to Build Effective Sales Compensation Plans for Any Customer Facing Role. To further complicate things, on-target earnings (OTE) have reached an all-time high.

Commission 98

Commission Product Quota Drivers/motivators 98

Sales Hacker

SEPTEMBER 23, 2021

Hundreds of customers trust them and want to buy from them – and a brand that people trust. There are over half a million software and IT services companies in the United States, which includes software publishers, custom computer programming service suppliers, computer systems design firms, and facilities management companies.

Commission 120

Commission Manufacturing Negotiate Contract 120

SaaStr

OCTOBER 1, 2020

Sales commissions amortized. However, the main culprit is it’s usually two different business: Recurring business (existing customers). Customer acquisition (bringing in new customers). Grab a cohort (typically all customers). This is essentially looking at what customers were worth a year ago and ignoring the now.

Contract 119

Contract Commission Engineering Gaming 119

SaaStr

AUGUST 12, 2020

Q: What are the typical discounts SaaS companies offer for a multi-year contract paid upfront for a 2, 3 & 5 year contract? you have net negative churn), multi-year contracts are worth less. One advantage to 3+ year contracts is they discourage your customers from looking for other solutions, at least, for quite a long time.

Commission 88

Commission Contract Closing Customers 88

Hubspot

APRIL 4, 2018

By partnering with other vendors, your business can offer a stronger product/service and a better customer experience. This might involve resellers earning a commission on your product or strategic partners bundling in your software with their own. To avoid channel partner conflict, set clear boundaries on customer targeting.

Territory 101

Territory Commission Contract Strategize 101

SaaStr

JUNE 17, 2022

Big Customers) in SaaS. Give whatever discount it takes to get customers to prepay for a year, and even bigger discounts for 2 years. Pay Sales Bonuses When Cash is Received, Not Upon Signed Contract. Which will lead to more cash, more quickly, without spending on commissions before cash comes in. A double win.

Commission 120

Commission Finance Contract Engineering 120

SaaStr

MARCH 8, 2021

Q: What is a good model for SaaS product sales commission? 500/mo is $6,000 a year so that’s a big enough deal size to support a traditional SaaS inside sales rep: Pay 20% of the expected ACV (annualized contract value) in total comp — but that might mean less commission until they’ve covered their base cost for the month.

Commission 90

Commission Inside sales Sales Contract 90

SBI

FEBRUARY 20, 2018

For example, our research shows that using Adobe Sign results in contracts being signed 21x faster than using paper-based signatures. Second, once contracts are in play, salespeople can monitor their status and stay on top of every step. Fourth, this digital automation improves account management and customer satisfaction.

Contract 55

Contract Gaming Commission Legal 55

Spiro Technologies

OCTOBER 7, 2021

Percentages are important in sales, not the least bit because commission checks tend to be calculated as a percentage of our monthly quotas. This is the proportion of leads that turn into closed deals — a figure salespeople should always be thinking about improving, especially if they want their commission checks to go up as well.

Closing 111

Closing Referrals Commission Contract 111

SaaStr

NOVEMBER 20, 2020

So most founder/CEOs want to take the hill, win the war, be good to their customers, and protect the team. We have more money, more resources, more customers, more, more, more. You’ve got the better product, by definition, at least for some customers (because otherwise, they’d all go for #1). Success breeds success.

Real Estate 135

Real Estate X-functional Contract Healthcare 135

SaaStr

MAY 25, 2020

“We added slack for customer support and on boarding” — Adam Livesay, founder, Elevat. In your contracts. “Pacakage in extras, all users, projects, features into the price and reduce any hidden costs in contracts. “E contract” — Julie Grieve, CEO CritonHQ. “Simplicity.

Closing 136

Closing Process Contract Price 136

SaaStr

DECEMBER 4, 2023

They wanted to quantify this trend of a longer sales cycle, so they commissioned a study of 500 revenue leaders in the U.S. So i f deals take longer to close, you’re spending more money and paying people longer, so your customer acquisition costs are increasing, payback takes longer to materialize, and your LTV to CAC goes down.

Contract 110

Contract Price Healthcare Commission 110

Martech

MARCH 31, 2023

Jennifer Paaske runs customer success at Boomer Baby , an independent Medicare insurance agency. We help match people with the right insurance plan and get paid a commission by the insurance carrier when we help people enroll.” Contracting niche experts for limited projects is another matter.

Contract 109

Contract Healthcare Commission Niche 109