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Sales Compensation Simulator

117 pointsby seanlinehanabout 2 months ago

4 comments

ghiculescuabout 2 months ago
I can see why you’d need software to calculate comp, if your comp system is so complex!<p>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.<p>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.
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gaddersabout 2 months ago
Needs to also model when to increase targets when it looks like Sales are in danger of hitting them &#x2F;sarcasm
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deepsunabout 2 months ago
The most important part of a commissions schedule to be able to change it.<p>I&#x27;d say typically companies have 6-month or 1-year cycles, and each cycle company rethinks the compensations (usually numbers through quotas, not procedures).
tiffanyhabout 2 months ago
Small nitpick ...<p>I see &quot;Commission Rate (%)&quot; as an input (when normally I see it as &quot;Sales Target&quot; as the input - which derives your commission rate)<p>Typically I see, $X is your Target Commission and $Y is your Sales Target.<p>(and when you divide those two figures, it equates to your % Commission Rate)