Show Me the Money: Incentive Comp for SaaS
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The difference between selling legacy software & selling SaaS is the difference between hunting elephants & shooting squirrels. On-Demand companies need their salespeople to behave differently, and those salespeople need to be motivated differently. This seminar presentation discusses how squirrel shooters should be managed & rewarded.
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Show Me the Money: Incentive Comp for SaaS
- 1. Show Me the Money Incentive Compensation Plans for Service-Oriented Sales Teams
- 5. Tech Services Rev Gen
- 6. Tech Services Rev Gen
- 10. Process?
- 12. A Better Process
- 19. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec “ The Rule of 78s”
- 20. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec “ The Rule of 78s”
- 21. (($13,000,000 x 30%)=$3,900,000) ÷ 78 = $50,000 Quota $3,900,000 times = 78 Totals 50,000 time = 1 is billed 50,000 December’s etc. throughout the year… 500,000 times = 10 is billed 50,000 March's 550,000 times = 11 is billed 50,000 February's $ 600,000 times = 12 is billed $ 50,000 January's
- 22. A Simple Rate Commissions = 62.5% of New MRR 62.5% Commission Rate $120,000 Total On-Quota Sales 75,000 Targeted Commissions 75,000 Base Salary $150,000 On-Target Earnings