(30:00) Donya Rose was interviewed by Alex Adamson on behalf of Bowery Capital. In this 30 minute podcast, Donya walks us through the do’s and don’ts of building rewarding and sustainable sales compensation plans for SaaS businesses.
(56:32) Check out this practical session that will provide a grounding in best practices for sales compensation plan design in a recurring revenue business. We look at the best primary measures of sales performance, and the necessary secondary measure. We consider common mis-steps in these plans…
(54:45) Learn about a new plan construct we’re calling a Relative Rate plan. In this construct, we don’t start with weights. We start with the idea that sales in a preferred category should pay out at a high commission rate than “vanilla” sales, and we directly manage the relative values of the commission rates rather than the weight for each stand-alone component.
The principle to apply here is that the sales person should be paid at the point at which (1) you can reliably state the value to the company of the sale, and (2) you want the sales person to disengage and move on to the next sales opportunity. For most SaaS models…