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How Do I Build a Usage-based Sales Compensation Plan?

Andreessen Horowitz

But building a sales compensation plan that both aligns your sales team’s compensation with your customers’ objectives and recruits top salespeople can be incredibly difficult in usage-based pricing. The problem comes down to incentives. The more customers like and use your product, the more revenue you bring in.

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How Much to Compensate SaaS Sales Teams for New Sales, Renewals and Expansions

Tom Tunguz

Many times startup teams ask how to compensate a sales team for renewals and upsells. This figure is called the cost of customer acquisition (CAC) ratio. How should SaaS startups compensate their sales teams for upsells and expansions? What’s the best way to compensate sales teams? New Customer 1.13 Expansion 0.20

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How to Ensure Customer Success during Mergers & Acquisitions

CustomerSuccessBox

Driving Customer Success during acquisitions is the trickiest as even the slightest operational change can have a huge negative impact on both personnel and customers. Why is it crucial to consider Customer Success during acquisition? Mutual clients that are competitors might pose a considerable risk during an acquisition.

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The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)

SaaStr

It’s 2021, but surprisingly, a significant number of SaaS companies still use outdated sales compensation plans. Says Roberge, “We’re using a sales comp plan that was invented in the 1980s, and it’s causing our customers to utilize their licenses at a lower rate, and it’s causing revenue contraction.”. When should you scale?

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SaaS Valuation: How to Value a SaaS Company + Tips for Improving Valuation

User Pilot

Metrics that can affect SaaS business valuation include Monthly /Annual Recurring Revenue, Customer Acquisition Cost , Customer Lifetime Value , Net Revenue Retention, Total Addressable Market, and YoY Growth Rate. SDE is the profit of the business owner and his compensation. SaaS valuation formula: SDE.

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The SaaS Metrics Maturity Model

Chaotic Flow

The stages of development can be classified into a natural progression of increasing SaaS business understanding from financial stability to operational measurability to revenue predictability outlined at the very beginning of this series. Sales is compensated on recurring revenue and avoids discounts based on total contract value.

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How to Become Profitable Faster in SaaS

Tom Tunguz

First, collect cash sooner with annual pre-pay contracts. All of the cost of customer acquisition for a SaaS company is borne in the first month or so. Growing this way requires a lot of cash to finance the acquisition investment. Some fraction of a sales development rep to qualify leads.