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.

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Compensation Startup Engineering Trends 269

SaaStr

AUGUST 15, 2023

Dear SaaStr: What are the typical components of a CEO’s compensation? A related post here: The All-In Dilution from an Outside CEO: Just Make Sure You Do the Math The post Dear SaaStr: What Are The Typical Components of CEO Compensation? How are CEO contracts typically structured? How are CEO Contracts Typically Structured?

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Compensation Management Leadership 197

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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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.

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Compensation 75

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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Andreessen Horowitz

FEBRUARY 8, 2024

But building a sales compensation plan that both aligns your sales team’s compensation with your customers’ objectives and recruits top salespeople can be incredibly difficult in usage-based pricing. The problem comes down to incentives. The more customers like and use your product, the more revenue you bring in.

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Compensation Sales Recruiting Sales Systems Review 80

TurnKey Labs

DECEMBER 5, 2023

To attract top talent, businesses need to navigate the intricacies of compensation planning more profoundly than ever before. This statistic underscores the ongoing importance of strategic compensation planning as organizations […]

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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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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.

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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).

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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 Trends Sales Artificial Intelligence 76

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 74

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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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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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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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 Recruiting Sales Hiring Retention 86

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 Retention 97

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.

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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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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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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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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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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.

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Compensation Sales Management 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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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 Retention 52

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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Compensation Customer Success Sales Recruiting Churn 100

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.

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Compensation Customer Success Trends Management 52

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.

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Compensation Acquisition Retention 105

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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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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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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Compensation Part-Time VPE Trends Startup 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 Benchmarks Startup SaaS 100

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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SaaStr

APRIL 4, 2024

The Top 8 SaaStr Tips to Building an Effective First Sales Team The most important tips and best practices for founders when building out their first sales team: Get sales experience yourself first Close the first 10-20 customers yourself to understand the sales process This will give you critical insights to effectively train and manage your first (..)

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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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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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