Tom Tunguz

JANUARY 17, 2022

Has the Great Resignation been caused by a silent stagnation in compensation? Let’s compare data from 2010 and 2021 to understand the longitudinal trends in cash and equity compensation. The cash compensation of three executive roles at early-stage companies has increased faster than inflation.

Compensation 248

Compensation Startup Engineering Trends 248

SaaStr

JUNE 8, 2023

Dear SaaStr: How Should I Design a Sales Reps Compensation Plan at Just $10k MRR ? A bit more and a deeper dive here: A Very Simple Sales Comp Plan For Your First Sales Reps The post Dear SaaStr: How Should I Design a Sales Reps Compensation Plan at Just $10k MRR? Then try it again (e.g., a new market, a new vertical, etc).

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Scale Compensation Sales Business Model 226

Andreessen Horowitz

JUNE 14, 2023

Your company’s compensation philosophy, process, and bands determine how most of your hires are compensated. Competitive compensation packages generally need to … The post Executive Compensation appeared first on Andreessen Horowitz. Executive hires, however, are a little different.

Compensation 77

Compensation 77

SaaStr

AUGUST 25, 2023

Dear SaaStr: As An Employee, As an acquired employee, How Do I Negotiate My Compensation in an Acquisition? Because it’s seen as their money, as “extra” compensation on top of the deal price. The post Dear SaaStr: As An Employee, How Do I Negotiate My Compensation in an Acquisition? appeared first on SaaStr.

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Compensation Acquisition Sales Hiring Retention 153

SaaStr

MAY 23, 2023

So leading growth stage VC Iconiq has published its latest and very detailed Definitive Guide to Sales Compensation here. The post Sales Reps Really Do Have to Close 4x-5x What They Take Home, and More: Iconiq’s Sales Compensation Guide appeared first on SaaStr. Everyone should have a read. A great report!

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Scale Compensation Sales SaaS 288

Totango

NOVEMBER 10, 2021

There is no one-size-fits-all formula for designing customer success compensation plans. Each company is unique and has different goals and KPIs in place that affect CS compensation structures. 4 Factors to Consider in Your CS Compensation Plan. Let’s take a look at four important factors. . Net Promoter Score (NPS).

Compensation 86

Compensation Customer Success Revenue Churn 86

Sales Hacker

OCTOBER 19, 2022

Sales compensation planning can be a tricky beast to tame — but know that you’re not alone. Then, I’ll help you take it to the next level with QuotaPath’s newest free resource — our Compensation Hub. Then, I’ll help you take it to the next level with QuotaPath’s newest free resource — our Compensation Hub.

Compensation 91

Compensation Sales Recruiting Sales Revenue 91

Sales Hacker

OCTOBER 7, 2022

Scott Barton, Varicent’s VP of Industry Solutions & 20-year sales compensation industry pro, attended WorldatWork’s 2022 Sales Compensation Conference. Despite these advances, few industry pros currently use predictive or prescriptive analytics for determining sales compensation plan effectiveness. Is change in the air?

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Compensation Sales Trends Artificial Intelligence 74

Totango

NOVEMBER 10, 2021

There is no one-size-fits-all formula for designing customer success compensation plans. Each company is unique and has different goals and KPIs in place that affect CSM compensation structures. 4 Factors to Consider in Your CSM Compensation Plan. Let’s take a look at four important factors. . Net Promoter Score (NPS).

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Compensation Customer Success Revenue Churn 76

Sales Hacker

FEBRUARY 28, 2023

Compensation plans exist to help your business reach its goals. With all the changes happening in today’s economic climate, it’s hard to make sure your plans stay on track. So, where do you begin?

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Compensation Sales Engineering Revenue 73

Sales Hacker

SEPTEMBER 27, 2022

He’s an expert in the sales world, particularly in revenue operations and incentive compensation. Building a compensation structure that works for both salespeople and the company. Building a compensation structure that works for both salespeople and the company. Best practices for designing compensation structure [07:00].

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Compensation Sales Recruiting Underperforming Technical Team Sales 77

Sales Hacker

MARCH 30, 2023

If you’re new to sales (or don’t have an economics degree), decoding the sales compensation plan on offer can make your head spin. I have over a decade of sales compensation and strategy experience, including my new course, The Practical Guide to Sales Compensation. What’s the pay mix in this compensation plan?

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Compensation Sales Recruiting Sales Hiring Underperforming Technical Team 72

ChurnZero

SEPTEMBER 10, 2021

There are several different models of compensation plans , but not all can be guaranteed to produce the same results for your organization. We’ve found that, when looking to build a strong team of Customer Success Managers (CSMs), an incentive compensation plan , otherwise called a variable compensation plan , produces the best results.

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Compensation Customer Success Churn Metrics 97

Sales Hacker

APRIL 19, 2022

In this article, I’ll outline the principles of compensation design , how to build sales compensation plans , and include resources to set OTEs and quotas that keep your reps happy and hungry for more. Bravado’s 2022 State of Sales Compensation Guide showed that 54 percent of reps missed their quota.

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Compensation Sales Hiring Sales Recruiting Retention 84

Sales Hacker

JULY 14, 2023

sometimes (like ~99%) people aren’t willing to do the work to make it stick Dan Shaw , CEO at GhostRetail : The most common recommendation I see from boards re: CRO compensation is to keep them focused on top line. If you’re getting value from this newsletter, please share it with friends and colleagues. Appreciate you.

Compensation 52

Compensation Sales Hiring Metrics Revenue 52

IT World

AUGUST 4, 2022

But the most recent studies show a much wider gap when it comes to overall compensation, which includes salary, bonuses, equity sharing, healthcare, titles, and any other benefits given to employees. The latest data from the US Census Bureau shows women now make about 82 cents on the dollar compared with their male counterparts.

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Compensation Healthcare Data 76

Sales Hacker

OCTOBER 8, 2020

The post Compensation Cookbook: Designing Comp & Territory Plans from Scratch appeared first on Sales Hacker.

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Compensation Sales 94

CloseSaaS

JANUARY 16, 2023

Ready to create a sales compensation plan for your team? Learn why it's important & how to design a plan that's both fair and effective.

Compensation 52

Compensation Sales Management 52

SaaStr

APRIL 21, 2023

What’s changed is the majority of startups that are venture-backed don’t seem to get the CEO’s and founders’ compensation packages approved by the board anymore. Eventually, everyone does when the company adds a true CFO and outside directors and even a compensation committee pre-IPO.

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Compensation Startup SaaS Finance 255

Sales Hacker

MAY 9, 2019

A great sales compensation plan needs to accomplish quite a lot. It needs to provide fair compensation to employees in customer-facing roles. The Process for Creating a Sales Compensation Plan. Plan Compensation for Onboarding and Training. Example Compensation Plans. Establish Role Levels. Keep it Simple.

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Compensation Sales Hiring Sales Recruiting Sales 99

Tom Tunguz

JANUARY 4, 2016

It’s the most provocative idea about employee compensation I’ve found. But, this compensation strategy must be complemented with a plan to reward the exceptions, the 10xers. As Daniel Kahneman showed in Thinking Fast and Slow , humans think in normal distributions.

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Compensation Startup Benchmarks Retention 100

ChurnZero

SEPTEMBER 10, 2021

There are several different models of compensation plans , but not all can be guaranteed to produce the same results for your organization. We’ve found that, when looking to build a strong team of Customer Success Managers (CSMs), an incentive compensation plan, otherwise called a variable compensation plan, produces the best results.

Compensation 52

Compensation Customer Success Churn Metrics 52

Tom Tunguz

JUNE 10, 2015

Compensation structures are one of the most interesting questions facing customer success organizations in software startups. How should customer success leaders structure their team’s compensation in order to align the objectives of individual customer success managers with those of the larger business?

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Customer Success Compensation Startup Software 100

Tom Tunguz

MAY 12, 2015

In the early years, Hubspot prioritized growth and consequently compensated their sales teams exclusively on new bookings. Over the next few years, Hubspot continued to evolve their sales compensation plan to reflect the needs and the priorities of the business. There is no optimum compensation structure for a CS team.

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Customer Success Compensation Sales Recruiting Churn 100

SaaStr

JULY 2, 2019

The post What is an equitable way to compensate someone who brings an investor to your start up company? But … I think if: someone respected by VCs connects you to a top investor that funds you … because they believe in you, especially if (x) they give you your lead investor, and. Whatever that is at your current stage.

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Compensation 118

Tom Tunguz

NOVEMBER 24, 2018

The ultimate goal of any compensation plan is to ensure account executive success at each stage. Managing these plans properly will enable the company to recruit new AEs to scale, because the current ones excel.

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Sales Recruiting Scale Sales Hiring Compensation 132

SaaStr

JULY 22, 2019

Almost always, compensation distributions are fixed the moment you sign a term sheet to be acquired (and really, a bit before that). The post When offering equity compensation, what should founders consider to make sure employees benefit fairly from a liquidity event? But this is rare. You can try and fix a few things around the edges.

Compensation 111

Compensation Acquisition Retention 111

CustomerSuccessBox

JANUARY 10, 2022

In recent years, CS professional compensation structures have tended to rely on revenue-generating activities, which will continue in 2022. As a result, over the past few years, compensation structures have focused on bonuses and other incentives such as stocks and equity options. Compensation system. 75,000-$250,000.

Customer Success 52

Customer Success Compensation Trends Management 52

Tom Tunguz

APRIL 28, 2014

Since 2008, there has been a secular trend to increase cash compensation and decrease equity to startup management teams. In the past 5 years, VPEs have benefitted from a 10 to 16% increase in their cash compensation, but have seen their equity grants fall by 17-19%. Cash +10% +16%. Equity -19% -17%. Cash +26% +8%. Equity -31% -25%.

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Part-Time VPE Compensation Startup Trends 100

Tom Tunguz

MARCH 29, 2015

For example, as Mark Roberge, CRO of Hubspot, wrote in The Sales Acceleration Formula , Hubspot adopted three different sales compensation plans throughout its early evolution which embody the three key ingredients of a sales compensation plan. Payout timing is the third component of the sales compensation.

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Compensation Scale Sales Payments 100

Tom Tunguz

FEBRUARY 1, 2015

Another way is to look at the cash based cost of the stock based compensation. The chart above shows the average stock-based compensation (SBC) per employee by years since founding across the basket of publicly traded SaaS companies. One way of answering this question is a blanket addition per year, say a 2% renewal.

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Compensation SaaS Startup Benchmarks 100

SaaStr

DECEMBER 19, 2022

Compensate Democratically: Managing up culture brings us all down. Muralidharan says, “Compensation is a very powerful motivator, so if there are certain behaviors you want to incentivize, then make sure that your compensation process is kind of aligned with those behaviors.” However, many companies participate in “managing up.”

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Compensation Headcount Company Culture Leadership 236

SaaStr

OCTOBER 19, 2023

One thing I have learned, though: If the founders are the highest compensated people in the start-up, especially pre-Scale (e.g., The second time, I funded the prototype myself ($0 salary) and then we raised a $2.6m seed and I took a small salary (no need to be $0 anymore, but anything large would decrease the runway).

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Scale Sales Hiring Marketing Compensation 275

Tom Tunguz

NOVEMBER 27, 2016

Many times startup teams ask how to compensate a sales team for renewals and upsells. How should SaaS startups compensate their sales teams for upsells and expansions? What’s the best way to compensate sales teams? The 2016 PacCrest Survey contains a wealth of information about these types of go to market questions.

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Scale SaaS Compensation Sales 100

SaaStr

NOVEMBER 2, 2023

And yes, while some day the compensation can be significant, in the early days, your actually often one of the lowest paid folks. Dear SaaStr: What’s Really So Great About Being CEO? It’s a really, really, really hard job. But: You never have to work for an idiot.

Compensation 275

Compensation 275

SaaStr

MARCH 16, 2023

CEO hires 2 reps, in the beginning, each barely pays for themselves, but by months 4–6 they are able to close 3x or more of their total compensation. By 8-10 sales reps, you probably need a first head of rev ops / sales operations to handle training, onboarding, compensation, quotas, etc.

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Sales Hiring Scale SaaS Startup 312

Tom Tunguz

NOVEMBER 28, 2023

” Microsoft is now compensating their salespeople for selling Snowflake more aggressively than in the past, perhaps as a competitive joust to Databricks. “Non-GAAP product gross margin of 78% was up approximately 300 basis points year-over-year. Improved terms from the cloud service providers have contributed to margin expansion.”

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GCP(Google Cloud Platform) Startup Data Azure 107