SaaStr

JANUARY 21, 2020

We’re going to move into things like learning and development, L&D, building on great career pathing and getting that compensation right and I’ll give you a preview. My velocity lane, PatientPop’s SMB SaaS, eight units a month, $13,500 contract. They came from medicine, right? Sounds very common.

Sales Recruiting 332

Sales Recruiting Sales Hiring Scale Sales 332

Tom Tunguz

MAY 1, 2023

Conversations about contracts & pricing are kicked down the road until the customer sees value & the path to capture it. AEs, experts in closing contracts, often focus on reducing sales cycle & maximizing contract value - which aligns with their incentives & compensation plan.

Scale 212

Scale Engineering Outsourced Development Sales 212

Tom Tunguz

JUNE 21, 2022

Second, UBP reduced friction for individual developers to tinker with the APIs. UBP presented an opportunity to reinvent the account executive (AE) compensation model. AEs retired quota by closing annual contracts for a base level usage. Contracted revenue constituted less than 50% of ARR. Compensation.

Startup 204

Startup Sales Hiring Outsourced Development Compensation 204

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. Create a 2-Page Contract and Get Mutual Commitment [TEMPLATE PROVIDED].

Compensation 110

Compensation Sales Hiring Development Team Review Sales Recruiting 110

SaaStr

NOVEMBER 24, 2021

It’s 2021, but surprisingly, a significant number of SaaS companies still use outdated sales compensation plans. Says Roberge, “We’re using a sales comp plan that was invented in the 1980s, and it’s causing our customers to utilize their licenses at a lower rate, and it’s causing revenue contraction.”.

Sales Hiring 260

Sales Hiring Scale Compensation Sales 260

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.

Compensation 98

Compensation Sales Recruiting Sales Hiring Retention 98

Tom Tunguz

OCTOBER 19, 2016

What is the optimal contract length with for your SaaS startup? It’s common to see SaaS startups initially price their products on a monthly basis, then add an enterprise “Call Me” plan which hides behind it an annual contract. Annual contracts bring predictability to a SaaS startup. Monthly, annual, multiyear?

Outsourced Development 100

Outsourced Development SaaS Payments Startup Sales Hiring 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? According to the survey, the median commission rate on upsells is the same as new sales at roughly 7-8% of ACV (annual contract value).

Compensation 100

Compensation Scale Sales SaaS 100

Sales Hacker

JUNE 14, 2018

A viable and proven option is handing over some or all of your sales efforts to outsourced sales professionals. It’s true that outsourcing your sales to a third-party provider can yield favorable results. There are many outsourcing companies, but which of them can actually hold a sales quota and get results?

Outsourcing Services 80

Outsourcing Services Sales Hiring Sales Outsourcing Outsourced Development 80

SaaStr

MAY 12, 2022

Offering its services as a freemium-based model, CircleCI recognizes driving trials as the cornerstone of a go-to-market strategy for any developer tool. . Jim Rose, CEO of CircleCI, leverages his experience marketing to software developers to discuss the merits of moving from a subscription-based to a usage-based business model.

Scale 264

Scale Payments SaaS Payments Payment Services 264

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.

Compensation 92

Compensation Sales Recruiting Sales Systems Review 92

Incredo

OCTOBER 17, 2019

or “how long should I spend on developing my software ?”. To answer your questions correctly, we need to ask for clarification and more details about your software, its complexity and company goals. If you search on Google, Youtube or Quora, answers will tell you that 7%, 9%, 10% or more is the common approach. See below!

SaaS Payments 150

SaaS Payments Compensation Payment Services Sales Recruiting 150

Incredo

OCTOBER 17, 2019

or “how long should I spend on developing my software ?”. To answer your questions correctly, we need to ask for clarification and more details about your software, its complexity and company goals. If you search on Google, Youtube or Quora, answers will tell you that 7%, 9%, 10% or more is the common approach. See below!

SaaS Payments 144

SaaS Payments Compensation Payment Services Sales Recruiting 144

ChurnZero

NOVEMBER 26, 2024

Develop and execute comprehensive onboarding and training programs tailored to the unique needs of mid-market and enterprise customers. Utilize data-driven insights and customer feedback to develop innovative solutions and drive product improvements. Assist in negotiating contracts and renewals. Is it a global company?

Technical Review 52

Technical Review Sales Recruiting Customer Success Sales Hiring 52

The Angel VC

APRIL 1, 2017

That means that you’ll have to: screen around 500-1000 CVs interview around 100 people do 2nd and 3rd interviews with around 20-50 people do a few dozen reference calls negotiate compensation and an employment contract with 10 people The numbers can obviously vary greatly, but you get the idea.

Sales Hiring 168

Sales Hiring Sales Recruiting Startup Software Review 168

Chaotic Flow

MAY 13, 2014

The stages of development can be classified into a natural progression of increasing SaaS business understanding from financial stability to operational measurability to revenue predictability outlined at the very beginning of this series. Sales is compensated on recurring revenue and avoids discounts based on total contract value.

Metrics 135

Metrics SaaS Compensation Benchmarks 135

Tom Tunguz

OCTOBER 20, 2015

According to Pacific Crest’s Annual SaaS survey , 9% of a sales rep’s annual contract value. The table below computes the effective salary + commission of a sales reps as a function of average contract value and an estimated quota. The first row shows the annual contract value (ACV), followed by an estimated quota.

Startup 100

Startup Outsourced Development Compensation Sales 100

Sales Hacker

DECEMBER 21, 2017

Implementation of Recommended Compensation and Incentives Program. Contract Lifecycle Management. Training & Development (Coaching and Mentoring). Contract Management. Contract Lifecycle Management. Manage compensation. . Compensation plan. Customer contract life cycle management.

Scale 106

Scale Sales Recruiting Sales Hiring Technical Review 106

SaaStr

JULY 25, 2021

Dev Ittycheria: So you could have a great sales productivity metric, but if you have five salespeople in one person blew out their number and compensated for the four other people who may be missed their number, that’s not a healthy sign. Jyoti Bansal: Yeah and it’s anyone selling to developer market which I’ve done it.

Sales Recruiting 264

Sales Recruiting Sales Hiring Scale VP of Engineering 264

Tom Tunguz

NOVEMBER 4, 2014

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). Contract Length: Many SaaS startups launch with monthly pricing which encourages customers to try the product and engenders demand.

Pricing 125

Pricing Startup SaaS Payments Payment Methods 125

Tom Tunguz

FEBRUARY 10, 2016

First, collect cash sooner with annual pre-pay contracts. It requires changing the sales process, likely suffering some decreased sales velocity and tinkering with compensation structures. Some fraction of a sales development rep to qualify leads. By collecting the cash up-front, startups neutralize this effect.

SaaS Payments 125

SaaS Payments Sales Recruiting Sales Hiring Payment Services 125

Neil Patel

DECEMBER 13, 2022

This makes it much easier for you to succeed and have a seamless experience as you’re getting help from multiple outsourced departments. For businesses that want to fully outsource multiple responsibilities to a single provider, you can’t go wrong with Resourcing Edge. #2 The days of using multiple tools to issue payments are over.

Outsourcing Services 88

Outsourcing Services Payment Services Sales Recruiting Sales Hiring 88

Sales Hacker

APRIL 10, 2018

However, SkyStream was able to sustain itself as it had diversified with a $10M contract with Disney on a new product, a $5M 3-year contract with the Department of Defense, and a $2Mrevenue stream from both the EMEA and APAC region. Mid Market/Department – selling platforms and applications using annual contracts.

SMB 96

SMB Strategy Outsourced Development Marketing 96

Neil Patel

NOVEMBER 5, 2020

So double-check your contract before making a commitment. They’ll also compensate you for unused months on your other contract. It’s worth noting that you’ll need to lock-in a 48-month contract to get the lowest possible rate. So if you’re a developer or a technical user, these will definitely come in handy.

Technical Review 145

Technical Review Outsourced Development Software Review Scale 145

Sales Hacker

NOVEMBER 10, 2023

Contract renewal dates. A spotlight falls on customer loyalty, an influential force on the revenue secured during contract renewals. Led by Lars Nilsson, who coined the phrase account-based sales development himself, this will be both a strategic and tactical session. Growth Engineer at Coast – more details here.

VP of Engineering 124

VP of Engineering Scale Outsourced Development Benchmarks 124

ChurnZero

NOVEMBER 29, 2022

First, it felt like I was abandoning my customers and punting them over to our professional services team once they signed a contract. As humans, we naturally focus on what we are measured on, and more importantly, what we are compensated for. But compensation plans are too large and complex of a topic to cover in a short blog.

Customer Success 98

Customer Success Sales Recruiting Technical Review Compensation 98

Tom Tunguz

MAY 31, 2017

Or an engineer pushing a new devops tool to other developers? After all, they both speak the same language, come from the same domain, will develop trust quickly. They know how to structure contracts to navigate procurement. What could be more natural than a marketer selling a product to other marketers?

Sales Hiring 100

Sales Hiring Sales Recruiting Scale Outsourced Development 100

Tom Tunguz

MAY 14, 2015

He projected a slide, which I’ve copied in the image above, that depicts the way Rapid7 sells a contract, deploys its software, engenders adoption and expands accounts. In the sales step, an account executive (with a sales development rep/SDR) qualifies a prospect. Here’s how the process works.

Customer Success 100

Customer Success Outsourced Development Compensation Engineering 100

Kellblog

AUGUST 7, 2019

I’ve been asked about this a few times lately, less because people value my accounting knowledge [1] but rather because people are curious about the CAC impact of such deals and how to compensate sales on them. The question on my mind is how do I look at this from a new ARR bookings, ending ARR, CAC, and sales compensation perspective?

Deferred Revenue 75

Deferred Revenue Pricing Payments SaaS Payments 75

Sales Hacker

JANUARY 13, 2021

OEM licenses are significantly larger deal sizes than direct to end-user contracts because the licensee is usually pushing out the software to their entire customer base or a large portion of their customer base. One OEM contract can give thousands or tens of thousands of end-users access to the licensor’s software. Exclusivity.

Payment Solutions 88

Payment Solutions Payments Software Review Enterprise 88

Chart Mogul

JANUARY 9, 2025

The beginnings of a sales playbook Develop a place where you can store fungible assets that help you throughout the sales process. Only when you have developed a keen understanding of your customers needs can you earn the right to ask questions about their decision-making process.

Scale 52

Scale Sales Hiring Startup Sales Recruiting 52

Sales Hacker

NOVEMBER 15, 2017

We’d also recommend this guide for any sales managers or business development leaders who are on-boarding new reps. Account-Based Selling / Sales Development. Account Development Representative. Account Development Representative. Average Contract Value. AB Testing. Account-Based Everything / Revenue.

Scale 105

Scale Payment Methods Sales Recruiting SaaS Payments 105

Mucker Capital

OCTOBER 10, 2023

Sales development is a nuanced blend of art and science, requiring a delicate balance for its effective implementation within a company. Drawing from substantial experience, Sally Duby from The Bridge Group provides valuable insights into the intricate realm of sales development. Sally's wisdom sheds light on this dilemma.

Scale 52

Scale Sales Hiring Outsourced Development Development 52

OpenView Labs

APRIL 29, 2021

Most CEOs/hiring managers have zero experience working with an outsourced search firm—and they don’t have an understanding of which firms are relevant to engage. Contingency firms , most commonly used for mid-level individual contributor recruiting, usually charge 25% of first-year cash compensation for their fee.

Sales Recruiting 81

Sales Recruiting Outsourcing Services Sales Hiring Scale 81

Sales Hacker

APRIL 1, 2025

Because remember partners, they just love to do the implementations and get more hours for bespoke coding and um, you know, one-off development. Uh, so a lot of focus on mutual development and mutual success. The second piece was developing with your partners. Don’t just be transactional development.

Scale 64

Scale VP of Engineering Outsourcing Services Enterprise 64

Sales Hacker

AUGUST 7, 2020

They also have well-developed workflows for lead-processing and drafting and revising of contracts. Start-ups often develop informal workflows from “scratch.” Sometimes you may receive shares in the company instead of compensation. There is no “ we have always done it this way. Opportunities.

Scale 106

Scale Enterprise Sales Hiring Technical Review 106

Neil Patel

DECEMBER 3, 2021

Additionally, if the workload is getting too much for staff and you need an extra pair of hands, consider outsourcing to an agency. Increase Compensation. One of the most important and undervalued aspects of a work environment is the opportunity for growth and development. Give Your Employees Space to Grow.

Healthcare 109

Healthcare Marketing Outsourced Development Technical Review 109