How to Think About Sales Incentives in SaaS Model

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With the adoption of the SaaS model come significant changes to customer facing roles and responsibilities, which in turn brings about new and likely complex compensation and incentive challenges.

In the “old” (pre-SaaS) days, when a sale was a single event, knowing what activity to commission was easy.

Sure you had to decide whether to pay for any business development activities, and whether to pay based on booking, billing or cash collection, but figuring out the trigger was easy: close the sale.

In some ways today’s subscription model is a much easier sale.

Gone are the eye-popping sticker shock moments and the never ending delays in closing. But new challenges have emerged such as how to manage retention and how to continually demonstrate ongoing value.

 


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Salespeople have become a key contributor to ongoing customer satisfaction

Like it or not, many salespeople have morphed into account managers as they are top of mind when a customer has a question or an issue.

Due to the changing economics of the sale, many companies are trading in expensive outside sales reps for armies of more affordable inside sales people, who must also act as first line support for customers.

 

How do you balance commissions?

How do you balance commissions for both attracting new business and retaining good clients?

Do you force sales professionals to replace lost customers for free (like a net-new book)?

If the compensation is off balance, you will either continually churn customers or be constantly farming the same small set.

 


 

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Reporting Solutions

Fusebill refreshed world-class billing platform for subscription based companies. At Fusebill, we are looking to support our customers with reporting that will make their commissioning calculations straightforward.

If you have advice on how to solve the puzzle of motivating sales professionals to attract new business and retain existing, let us know! 

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Tags: SaaS

Fusebill Inc.

Fusebill simplifies subscription and billing management by automating many manual accounting and financial processes and workflows. Our cloud-based platform gives companies the freedom to grow their businesses, the flexibility to capitalize on new product opportunities, and the agility to maintain a competitive edge.

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