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 Much Should I Pay My Employees? An Introduction to Compensation Philosophy

TechStars

Developing a compensation philosophy—and doing so sooner rather than later—is one key way to get compensation right. But what exactly is a compensation philosophy, and how do you go about developing one for your startup? . When done well, your compensation philosophy can set the stage for building a more transparent culture and building trust with employees. . What is a compensation philosophy? . How to develop your compensation philosophy .

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Compensation Cookbook: Designing Comp & Territory Plans from Scratch

Sales Hacker

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

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.

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.

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.

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

SaaStr

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

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.

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.

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.

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.

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).

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?

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.

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?

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!

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.

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

The Four Stages of Sales Compensation Structures in Early Stage Startups

Tomasz Tunguz

The ultimate goal of any compensation plan is to ensure account executive success at each stage. Your startup is just getting off the ground. You might have a few account executives and a sales leader in place; maybe some revenue and a handful of customers. The sales team costs real money, and the question before the company is: how do you know what quota plan to assign to the account executives? I’ve seen four stages in early stage software companies.

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.

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.

5 Quick Thoughts on Raises

SaaStr

Many founders like to tie compensation to results and like bonuses for overachievers. Blog Posts Compensation Q&AQ: When should you raise the salary of your employees as a startup? A few thoughts to at least think about: Try to pay “market” to all your employees as soon as you can.

Why Do Some People Consider Venture Capital a “Young Person’s Game”?

SaaStr

Blog Posts CompensationBecause it takes so, so long to make money from it. At least from very early-stage investing. So while not a young person’s game per se, it really helps to start early. It doesn’t take that long in venture to make a decent salary.

The Optimal Compensation Plan for Customer Success Teams

Tomasz Tunguz

In the early years, Hubspot prioritized growth and consequently compensated their sales teams exclusively on new bookings. But after observing some of the initial churn rates of particular customer segments, the company re-emphasized the importance of closing the right customers, and added a churn component to the compensation structure of the sales teams, to ensure that the sales teams were pursuing the right kinds of customers.

There Are Never Enough Stock Options To Go Around

SaaStr

Blog Posts Compensation Q&AQ: What amount of share options is fair? Boy this is a tough question. Options are rarely worth as much as anyone expects , unless the start-up is worth $10b+. One big problem: the pie only adds up to 100%. That sounds silly, but it isn’t.

Benchmarks for Employee Stock Based Compensation in SaaS Startups

Tomasz Tunguz

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. In summary, each year the typical public SaaS company spends about $10-20k in stock based compensation per employee. Above, I’ve plotted the median spend on stock-based compensation over the first ten years of each company’s life.

3 Key Ingredients of a Sales Compensation Plan

Tomasz Tunguz

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. Hubspot’s journey highlights the three key components of a sales compensation plan: commission ratio, acceleration and payment schedule. Payout timing is the third component of the sales compensation.

SaaStr Podcast #377 with Hashicorp CEO Dave McJannet

SaaStr

Their compensation’s not tied to it in the product organizations, but it’s a notional target that I interrogate and expect. Company Culture Compensation Leadership Podcasts Sales dave mcjannet hashicorp

At the Top SaaS Companies, Most Co-Founders Are Not Equal (And That’s OK)

SaaStr

Blog Posts Compensation Early Human ResourcesI was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. That was how I was brought up (the first start-up job I had, the founders were equal shareholders). And I generally thought that was the default, albeit was many exceptions. Well, I was wrong.

SaaStr Podcast #379 with SaaStr CEO and Founder Jason Lemkin: “The Top 10 Mistakes Founders Make When Hiring Their First Sales Team”

SaaStr

379: From how many reps to hire, to compensation models, here are the top 10 mistakes founders make when hiring their first sales teams and how to avoid them. Compensation Early Hiring Leadership Podcasts Sales jason lemkin

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

Tomasz Tunguz

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? Developing the sales motions, customer success sophistication and compensation structures to enable this type of growth is an essential skill of enduring SaaS businesses

SaaStr Podcasts for the Week with Matrix Partners and EZPR — February 21, 2020

SaaStr

How should founders think about sales rep compensation? Because I always struggle slightly when they’re rewarded or compensated on MQL or even, sales accepted leads, I always think they should be tied directly to a number associated to revenue.

A Step by Step Guide to Revenue Growth with Mark Roberge (Video + Transcript)

SaaStr

The last part I want to do is on compensation. Blog Posts Company Culture Compensation Customer Success Featured Videos Growth Hiring Leadership Marketing Marketing Strategy Metrics SaaStr Events Sales Scale Videos saastr annualMark Roberge is a senior lecturer at Harvard Business School and the former CRO at Hubspot. His session was our highest-rated session at SaaStr Annual 2019 and you’re about to see why.

The Unexpected Compensation Trends of Post-Series A Startup Founder/CEOs

Tomasz Tunguz

There’s an interesting phenomemon occurring in founder compensation for post-Series A companies: founding CEOs are swapping cash for larger equity stakes in their companies. Each year, Redpoint portfolio companies participate in a compensation survey along with the portfolio companies of about 50 other firms, totaling about 800 startups.

SaaStr Podcasts for the Week with Mapistry and Slack — November 29, 2019

SaaStr

Career Growth & Advice Compensation Hiring Marketing Podcasts SaaS Product Pricing Sales allie janoch dannie herzberg founder's favorites Kevin egan mapistry Slack286: Allie Janoch is the Founder & CEO @ Mapistry, the startup that makes environmental compliance simple.

10 Tough Lessons We Learned Building a Prenicorn Outside of Silicon Valley from Pendo.io (Video + Transcript)

SaaStr

Blog Posts Company Culture Compensation Featured Videos Hiring Human Resources International Expansion Leadership Marketing Resource Type Role / Function SaaStr Events Topics Videos saastr annualBuilding a hyper-growth company is hard anywhere, but building one outside the Bay Area comes with its own unique challenges. Learn how Pendo built a product, team, and culture in its Raleigh hometown that could scale coast-to-coast and continent-to-continent.

SaaStr Podcast #213: Tom Tunguz, GP @ Redpoint Ventures On Why Scoring Leads May Actually Be Dangerous

SaaStr

Tom Tunguz: The second reason that we’re starting to see this kind of demarcation between CSM and AE, particularly for the upsell has to do with compensation. At the beginning, maybe two or three years ago, there were lots of different ways of compensating a CSM. Compensation Early Podcasts SaaS Product Pricing SalesWelcome to Episode 213!

SaaStr Podcast #210: Bridget Gleason, VP of Sales @ Logz.io On Why The Best Sales Reps Are Not Outgoing and Extroverted

SaaStr

If we do stick with the kind of compensation plan though, so to speak, I do get asked by, again, a lot of founders about it. Compensation Hiring Leadership Podcasts SalesWelcome to Episode 210! Bridget Gleason is VP of Sales @ Logz.io, the startup that uses predictive analytics and machine learning to provide monitoring, troubleshooting and security. To date, Logz have raised over $45m in funding from the likes of Openview, 83North and Vintage just to name a few.