{ "media_type": "text", "post_content": "Hey bowl,\n\nI'm building a sales organization for a SaaS start up from scratch, and I want to encourage a constructive sales environment from the get-go. Things like supportive teamwork, life time deal with value, and similar.\n\nHow would you design incentive structures for sales roles that encourage people and teams to support each other while also making sales leading to growing ARR?\n\nWhat have you experienced that works particularly well? What doesn't?", "post_id": "626cf834e50d03002d47b084", "reply_count": 7, "vote_count": 2, "bowl_id": "5787dd60a3f35c130082b851", "bowl_name": "Sales", "feed_type": "crowd" }

Hey bowl,

I'm building a sales organization for a SaaS start up from scratch, and I want to encourage a constructive sales environment from the get-go. Things like supportive teamwork, life time deal with value, and similar.

How would you design incentive structures for sales roles that encourage people and teams to support each other while also making sales leading to growing ARR?

What have you experienced that works particularly well? What doesn't?

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In industries where sales comp is based on YoY revenue growth/performance, I fully support replacing “on-target” commission with cross-functional performance bonus as you mentioned, it keeps everyone accountable for customer success and fosters an all hands on deck approach…to your point about working in sales without commission…some of the largest, fastest growing companies right now have total comp of Base + vesting equity, no “commission”…Given the way many companies struggled to right size sales comp through the pandemic, I would’ve have a whole new appreciate for the transparency of a non-commission plan!!

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I used to work for a start up that had a quarterly bonus that was split between company, business unit, local team sales target obtainment (10% each) & 70% renewal obtainment paid in equity on a 12 month vest.

That bonus + salary & sales commission really created a great culture and focus. If only the product actually worked I think the company would have thrived. 😂

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What would remove that temptation for you?

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Provide the AEs a bonus each time they create a lead for their peers. Provide an end-of-year award for the person who's created the most leads. Encourage them to have monthly "birds of a feather" sessions (without you, of course) to exchange ideas.

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