by ghiculescu on 4/1/2025, 7:25:49 AM
by gadders on 4/1/2025, 2:50:00 PM
Needs to also model when to increase targets when it looks like Sales are in danger of hitting them /sarcasm
by deepsun on 4/2/2025, 5:25:00 PM
The most important part of a commissions schedule to be able to change it.
I'd say typically companies have 6-month or 1-year cycles, and each cycle company rethinks the compensations (usually numbers through quotas, not procedures).
by tiffanyh on 4/1/2025, 5:00:00 PM
Small nitpick ...
I see "Commission Rate (%)" as an input (when normally I see it as "Sales Target" as the input - which derives your commission rate)
Typically I see, $X is your Target Commission and $Y is your Sales Target.
(and when you divide those two figures, it equates to your % Commission Rate)
I can see why you’d need software to calculate comp, if your comp system is so complex!
As a case study in simplicity: our sales people get 1xMRR for each deal closed, or 2xMRR if the deal signs an annual contract. SDRs get a flat amount for each demo sat (doesn’t have to close, but does have to be accepted by the AE). The amount is equivalent to 0.75xMRR for a typical customer.
That’s really all you need in SaaS. This has scaled from less than 1M ARR through to… more than 100x bigger than when it started.