How do you design an effective commission plan for your first SaaS sales hires?
There are different approaches to designing the right remuneration model for your sales teams, such as on-target earnings, base salary, and little commission, and commissions only.
The phase your business is in defines which approach is suitable here is what has worked for us. Keeping in mind: for profitable businesses with ambitious growth targets of 100% year-over-year - hire 25–35-year-olds who are up for a challenge and are fueled by a deep desire to move something forward.
- Award a direct percentage of commission on each deal made to the sales employee.
- Never set a target you have not achieved yourself as the founders/head of sales.
Can’t do it yourself? WTF? STOP Hiring.
Offer a base salary that gives security but does NOT satisfy your team.
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