Remove Compensation Remove Payments Remove Retention
article thumbnail

Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition?

SaaStr

Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition? A few thoughts on retention compensation when you are acquired. Second, understand there are both carrots and sticks that acquirers can employ, and that the retention may involve a combination of both. Even if they haven’t told you yet. Time-based.

article thumbnail

Dear SaaStr: How Should I Pay Sales Reps When Our Customers Pay Monthly?

SaaStr

If that $500-a-month customer has an 80% retention rate at the end of the year on average, then that’s essentially a $4,800 deal. they take home < 4x the total revenue they close). Not worrying about billing or the next month’s payment. Don’t do it once cash is a little less tight. And maybe add clawbacks.

Scale 258
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Is Outcome-Based Pricing the Future of B2B SaaS?

Valuize Consulting

For B2B SaaS companies, this means charging based on measurable outcomes—such as increased revenue, cost savings, or operational efficiencies. In essence, you’re compensated based on your customer’s success—be it increased revenue, cost savings, or productivity improvements.

article thumbnail

3 Key Ingredients of a Sales Compensation Plan

Tom 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. Account executives were divided into quartiles by customer retention.

article thumbnail

What’s typical commission for SaaS salesperson? [Really 10%?]

Incredo

What are 5 common SaaS sales compensation models? The reason is that commission-only position doesn’t guarantee a fixed financial compensation at the end of each month. You exclude development, support, marketing and other costs and pay commission only based on the amount of net revenue. See below!

article thumbnail

What’s typical commission for SaaS salesperson? [Really 10%?]

Incredo

What are 5 common SaaS sales compensation models? The reason is that commission-only position doesn’t guarantee a fixed financial compensation at the end of each month. You exclude development, support, marketing and other costs and pay commission only based on the amount of net revenue. See below!

article thumbnail

Calculating Sales Commissions Shouldn’t Be A Pain In The SaaS

Chargify

While the math portion may be simple, tying revenue to reps and accurately tracking revenue performance over time is anything but simple—especially in a fast-paced segment like SaaS where any given rep could be selling different price points, billing frequencies, and even billing models like fixed-price vs. metered-usage. .