Sales Compensation Plans – The Complete Guide

The Daily Egg

If you have problems motivating and retaining your top salespeople, you may need to take a closer look at your sales compensation plan. Besides motivating your sales force, a good sales compensation […].

How to Structure Your Sales Compensation Plan to Deliberately Undersell

Tomasz Tunguz

“A key part of the formula: crafting the right account executive compensation structure to reward this strategy.” The trick: compensate AEs on expansion at the same rate as initial land.

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CSM Compensation Plans: Factors that Matter

Totango

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.

CSM Compensation Plans: Factors that Matter

Totango

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.

Tech Talent Ranks the Most Innovative Companies They'd Love to Work for and Why

Hired surveyed more than 4,000 tech workers to find out which companies rank as their most desirable employers and how other organizations can compete for their attention. Download this report to learn what tech talent values most in a potential employer and how to improve your employer brand.

Is Compensation Stagnation to Blame for the Great Resignation?

Tomasz Tunguz

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. The question I haven’t answered is whether compensation at larger companies has materially outpaced startups' raises.

How to Build Sales Compensation Plans that Increase Retention and Productivity

Sales Hacker

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. Who should be responsible for sales compensation planning?

Compensation chasms remains for women, minorities — even as salary gaps close

IT World

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.

Flexible Work, Compensation Demands, and Hiring Trends: First Annual State of SaaS Talent Report

OpenView Labs

Increasing compensation to attract qualified candidates— 92% of respondents reported seeing an increase in compensation expectations. The post Flexible Work, Compensation Demands, and Hiring Trends: First Annual State of SaaS Talent Report appeared first on OpenView

Reduce Churn: Craft Customer Success Compensation Plans That Attract Top Tier Talent

ChurnZero

There are several different models of compensation plans , but not all can be guaranteed to produce the same results for your organization. What Is a Variable Compensation Plan? These are also called incentive compensation plans. Determine Your Compensation Split.

Dear SaaStr: How Much Equity Do You Give to Extremely Early Employees?

SaaStr

Blog Posts Career Growth & Advice Company Stage Compensation Early Leadership Q&A Resource Type Role / Function TopicsDear SaaStr: How Much Equity Do You Give to Extremely Early Employees? It’s a tough one because they really do deserve a lot. But the pie only adds to 100%.

Reduce Churn: Craft Customer Success Compensation Plans That Attract Top Tier Talent

ChurnZero

There are several different models of compensation plans , but not all can be guaranteed to produce the same results for your organization. What Is a Variable Compensation Plan? These are also called incentive compensation plans. Determine Your Compensation Split.

What is an equitable way to compensate someone who brings an investor to your start up company?

SaaStr

The post What is an equitable way to compensate someone who brings an investor to your start up company? If someone wants to be paid to help you fundraise, pass. VCs will smell it and it will be a negative. 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.

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. But The Best Ones Make $261k.

SaaStr

Blog Posts Compensation SalesOk I have to admit, I don’t know BowtiedCocoon on Twitter but the research from LinkedIn put together looks really solid and consistent with all my data. And it’s super helpful.

SMB 245

How to Build Effective Sales Compensation Plans for Any Customer Facing Role

Sales Hacker

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. Whether you’re building a sales compensation plan from scratch or re-building an old one, you should take the following steps in order: Understand the Basic Requirements of a Good Sales Comp Plan. Plan Compensation for Onboarding and Training. Capping Compensation.

Dear SaaStr: At What Point Should Founders Pay Themselves a Market Salary?

SaaStr

Company Stage Compensation Early Leadership Q&A Resource Type Role / Function TopicsDear SaaStr: At What Point Should Founders Pay Themselves a Market Salary? The right answer is: just as soon as the company can afford it.

When offering equity compensation, what should founders consider to make sure employees benefit fairly from a liquidity event?

SaaStr

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? Bear on thing in mind: You can fix a lot of things in equity later before you sell — if you are still in charge. So you can always grant more equity to someone that outperforms, is promoted, etc. on your watch.

Dear SaaStr: How Many Deals Can a Sales Rep Close Per Month?

SaaStr

Blog Posts Compensation Early SalesDear SaaStr: How Many Deals Can a Sales Rep Close Per Month? A successful but not top 5% sales rep in SaaS typically can close: 20–50 deals a month if $0.5k-$2k ACV , i.e., very transactional 1–2 call close. Usually all inbound.

16 Ways to Level Up in 2022 with SaaStr Founder Jason Lemkin (Pod 567 + Video)

SaaStr

Blog Posts Company Culture Compensation Customer Success Featured Podcasts Featured Videos Leadership Marketing Metrics Podcasts Sales VideosWe’ve recently been posting polls on SaaStr’s LinkedIn account to get a feel for what SaaS companies are doing in the current environment.

Money

SaaStr

Blog Posts Compensation LeadershipAfter almost 60,000,000 views on Quora, the top #2, #4, #14, and #17 answers are all about how much money CEOs and founders ma ke. And not just “exit” money but salary. Salary is a means to an end for great founders, nothing more.

Customer Success Manager (CSM): Responsibilities, Compensation and salary trends in 2022

CustomerSuccessBox

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.

Dear SaaStr: What Incentives Actually Incent Employees to Stay?

SaaStr

Blog Posts Company Culture CompensationQ: What incentives work well to attract new employees to a company, and what ultimately makes them want to stay? The tough part is that things that incent folks to join … don’t really incent them to stay. Not really, at least not in my experience.

The Ins & Outs of Variable Pay Compensation Structure for Sales Teams

Sales Hacker

With increasing focus on grit and many claims of meritocracies in organizations across the country, why does variable pay compensation even exist? On top of that, why are sales people some of the few employees subject to variable compensation structures? What is Variable Pay Compensation Anyway? Variable pay compensation consists of paying employees based on (usually) some fixed “base” salary as well as a variable component based on performance.

How Much Should the CEO Pay Themselves?

SaaStr

Company Stage Compensation Early Leadership Q&A Resource Type Role / Function TopicsThere’s a lot of stuff written on how much to pay yourself as CEO. Christoph Janz has a great spreadsheet of quantitative thoughts here.

How to Build a High-Performing and Data-Driven Inside Sales team at Scale with WalkMe’s VP of Sales, Aliisa Rosenthal (Video)

SaaStr

Blog Posts Company Culture Compensation Hiring Leadership Sales VideosThe world of sales is evolving as rising costs and shifts in buyer behaviors continue to change. An emerging strategy that organizations are adopting to grow revenue more efficiently is inside sales.

How Does a CEO/Founder Pick Their Own Salary?

SaaStr

Blog Posts Company Stage Compensation Early Leadership Q&A Resource Type Role / Function TopicsQ: How does a CEO/founder/owner pick their salary? I’ll share my stories. In my first start-up, we raised $9m in our seed round — a large first round, but the times were different.

On “Paying” Your Mentors and Advisors: The 2.5x Rule

SaaStr

Blog Posts Company Stage Compensation Leadership Resource Type Role / Function Topics

When Startup Compensation Isn't About the Money

Tomasz Tunguz

It’s the most provocative idea about employee compensation I’ve found. Today, it’s common for startups and companies of all sizes to refer to compensation surveys that span the 10th percentile to the 90th percentile in compensation for roles, and use these benchmarks provide offers to new hires, inform promotion salary increases and new option grants, and underpin retention packages. In his book describing Google’s People Operations called Work Rules!

In The Early Days, Don’t Forget To Pay Yourself, Too

SaaStr

Blog Posts Company Stage Compensation Early Leadership Resource Type Role / Function TopicsWhen I co-founded my first company, way back in the dark stretch between Web 1.0 and Web 2.0, we got a terrible deal, from a dilution and valuation perspective.

What Makes a Great VP of Sales and How to Hire One

SaaStr

VP of Sales Compensation Plan. Blog Posts Company Stage Compensation Hiring Resource Type Role / Function Sales TopicsIn SaaS, #1 most common misfire, with a bullet, is the VP/head of sales. In fact, there’s a VC saying that I used to really hate.

How to Divide Up Founders’ Shares

SaaStr

Blog Posts Compensation EarlyQ: How should shares in a startup be divided between 4 co-founders? If we have equal shares, what if one of us puts in a cash injection at a later date? You’ve got two good, different questions here.

Startup Best Practices 12 - Customer Success Compensation

Tomasz Tunguz

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? Like sales compensation plans , customer success compensation plans should evolve to serve the business’s needs.

Your #1 Sales Rep Should Be Driving an M8 Convertible By Month 12. (And Not Buying a Panerai Watch.)

SaaStr

Blog Posts Company Stage Compensation Hiring Resource Type Role / Function Sales TopicsI want to spend a few posts and some time on sales comp plans for early-ish stage SaaS companies (up to say $20m in ARR).

Reviews Of The Highest Paying MLM Network Marketing Compensation Plan Opportunities

SaaS Metrics

Multi-Level Marketing (MLM) refers to one of the most popular and common forms of businesses in the industry today. It’s a big business that many Americans and even other countries all over the world are involved. Why is it so popular? Because you’re selling products, at your own flexible time, and with significant earning potential. With their unique MLM pay plan, this is a very attractive form of entrepreneurship. Looking to get a start with MLM?

Don’t Forget to Pay People Right – Or at Least as Much as You Can

SaaStr

Blog Posts Company Stage Compensation Hiring Human Resources Resource Type Role / Function Topics

By The Time You Give Them a Raise, They’re Already Out The Door

SaaStr

Blog Posts Company Stage Compensation Hiring Human Resources Resource Type Role / Function TopicsIf someone is looking for another job in Year 1, Even if they don’t take it … You’ve already basically lost them. Do more 1-on-1s Get more 360 feedback Talk more. I know you don’t have time.

A Framework For Your First SaaS Sales Comp Plan

SaaStr

SaaS Enterprise Sales Compensation Pl an. Blog Posts Company Stage Compensation Hiring Resource Type Role / Function Sales TopicsI’m not ashamed to admit that when I set up our first SaaS sales comp plan, I had no idea what I was doing.

The Surprising Compensation Trends of Startup Executives

Tomasz Tunguz

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%. Above, I’ve charted the cash compensation trends, (salary+bonus), for the different roles and different locations.

How to Calculate How Many Deals a Sales Rep Has to Close Per Month. And Their Quota.

SaaStr

Blog Posts Compensation Early SalesQ: What’s a healthy number of deals an Account Executive for a B2B SaaS company be working? How many is too many? Deal size is $4k/yr and sales cycle ~25 days. You can back into it. First, what’s the On Target Earnings (OTE = base + bonus) for the rep?

How Much Equity Should a CEO Have? Answer: 6%-15% On Average At IPO

SaaStr

Blog Posts CompensationQ: How much equity should a CEO get in a startup? There’s no magical answer, but for venture-backed start-ups, for years VCs have aligned on around 6%-8% equity for a non-founder / outside CEO. As you approach IPO and very late stage, that often goes down.