Comments on: How should sales be credited for SaaS sales? http://cygnalgroup.com/how-should-sales-be-credited-for-saas-sales/ Making your numbers . . . better. Tue, 31 Jan 2012 15:32:04 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Donya Rose http://cygnalgroup.com/how-should-sales-be-credited-for-saas-sales/comment-page-1/#comment-133 Donya Rose Thu, 19 May 2011 17:29:17 +0000 http://strategicmarketingcary.com/cygnal/how-should-sales-be-credited-for-saas-sales/#comment-133 Tyler, That's what a lot of companies do, from early stage to later stage - pay when the cash comes in. And that works fine for a few years. But in the long run, your most successful sales people will build up an annuity tail that becomes as much as 2/3 or more of their "variable" pay. This is what leads to the reduced interest in selling new accounts, and less risk and upside based on current period performance. If it's an account management role, then that works. If it's primarily a new business role, it probably breaks down in a few years (if you are growing and have successful sales people who stay with you for years). The requirement that they grow could be a great way to keep them focused on new in the early stages. But in the long run, if you want them focused on new, pay for new. That's my perspective, though I'm sure there are others. Would love to hear from others who may have had this model in place successfully for years, or who have moved away from it. Tyler, That’s what a lot of companies do, from early stage to later stage – pay when the cash comes in. And that works fine for a few years. But in the long run, your most successful sales people will build up an annuity tail that becomes as much as 2/3 or more of their “variable” pay. This is what leads to the reduced interest in selling new accounts, and less risk and upside based on current period performance. If it’s an account management role, then that works. If it’s primarily a new business role, it probably breaks down in a few years (if you are growing and have successful sales people who stay with you for years). The requirement that they grow could be a great way to keep them focused on new in the early stages. But in the long run, if you want them focused on new, pay for new. That’s my perspective, though I’m sure there are others.

Would love to hear from others who may have had this model in place successfully for years, or who have moved away from it.

]]> By: Tyler Smith http://cygnalgroup.com/how-should-sales-be-credited-for-saas-sales/comment-page-1/#comment-132 Tyler Smith Thu, 19 May 2011 17:17:27 +0000 http://strategicmarketingcary.com/cygnal/how-should-sales-be-credited-for-saas-sales/#comment-132 I like the paying in alignment with cash coming in. I know it is nice for the sales rep to have that money coming in from the year prior and to avoid the sales rep being comfortable can't we make him have to meet his goals like a 5% increase each 3 months? I like the paying in alignment with cash coming in. I know it is nice for the sales rep to have that money coming in from the year prior and to avoid the sales rep being comfortable can’t we make him have to meet his goals like a 5% increase each 3 months?

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