article thumbnail

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It’s 2021, but surprisingly, a significant number of SaaS companies still use outdated sales compensation plans. 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.

article thumbnail

Consumption-based pricing models: transition guidance for CFOs

OPEXEngine

For example, technology companies like AWS, GCP, and Snowflake offer no contracts for customers interested in using their self-service option or beta-testing the solution. Pay for performance compensation plan. Sales compensation. Ensure the sales compensation plan aligns with the company’s consumption pricing goals.

Pricing 52
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

4 Traits of Fast-growing SaaS Companies

OpenView Labs

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. The takeaway.

article thumbnail

The 7 Factors to Consider When Pricing Your Startup's Product

Tom Tunguz

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). Like product development, developing pricing is a never-ending exercise. Many infrastructure as a service companies do this.

Pricing 120
article thumbnail

SaaStr Podcasts for the Week with Outreach and OverView — December 20, 2019

SaaStr

Prior to founding Outreach, Manny spent 7 years with Microsoft where he ran the Latin America and Canada business development group for Microsoft’s emerging mobile division, representing $50M of yearly revenue. Listen to the start of the episode for a promo code to our upcoming events!

Scale 142
article thumbnail

How to Retain Employees For 10+ Years with Alf Ruppert

FastSpring

Our former Director of Content and Community spoke to Alf about managing a happy team, how he’s grown his company without external funding, the history of developing in the Mac ecosystem, and running a consulting and software business. And the problem was, I have no clue in software development. So I just had this idea.

article thumbnail

CAC Payback Basics: What It Is, How to Calculate It and Why It Matters

OpenView Labs

This includes expenses like ad spend, creative development, and commissions along with more substantial overhead expenses such as salaries and rent. Don’t forget to look at how the numbers trend over time to develop a clear picture of what’s actually happening and remain vigilant about your efficiency, particularly as your company grows.

Scale 40