SaaStr
NOVEMBER 14, 2023
Meghan Gill, SVP of Sales Ops and Sales Dev at MongoDB, shares different consumption-based compensation models that drive the right behaviors. Compensation will drive it and have unexpected results. If you want to get rid of the cobras, paying for every cobra killed clearly wasn’t the right behavior to compensate.
SaaStr
NOVEMBER 24, 2021
It’s 2021, but surprisingly, a significant number of SaaS companies still use outdated sales compensation plans. Salespeople are often compensated at the highest rate when they win brand new business, but that might not be good for revenue expansion and might contribute to churn.
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OpenView Labs
FEBRUARY 3, 2022
AWS and other infrastructure providers have been using UBP for nearly a decade. It’s clear that faster-growing businesses are taking advantage of more creative pricing models, however, the switch to usage-based pricing can represent a host of challenges from revenue recognition to sales compensation.
Totango
MARCH 5, 2019
That is, right after they post on social media about the awful company that sold them a bad, unsupported product. If the escalation is so problematic that the customer is seeking compensation, review their purchasing history before extending a compensation offer. Don’t let this happen to your business. Is a refund in order?
Tom Tunguz
NOVEMBER 4, 2014
AWS, Twilio, Heroku, etc. Called field sales or outside sales people, their compensation starts at about $250k per year for on-target earnings (OTE - combination of salary and sales commission). Third, contracts mitigate churn rates because the customer is only making a renewal decision once per year, instead of 12x per year.
ChurnZero
OCTOBER 16, 2020
Why would we replicate that awful and uncomfortable experience we have in the B2C world with our B2B buyers? Contraction and churn are a leaky bucket that will lead to the demise of a SaaS platform. Both the CSM and SE are compensated on the sale, so it’s a team-based approach.”. United we retain, divided we churn.
OpenView Labs
JUNE 25, 2019
Keep in mind, the MRR figure used in this calculation should include net new MRR which in a given period is equal to MRR from new customers plus expansion MRR from existing customers less churn MRR from lost or downgraded customers. For example, perhaps your CAC payback is worse than peer benchmarks but your retention is best-in-class.
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