(3 examples for you) ... No matter which SaaS sales compensation structure you will go for, here are 6 rules that will help you make smarter decisions. It is also very popular among SaaS startups. As we learned at office hours with Hollie Wegman, the role of the CMO is team builder. The Challenge of SaaS Sales. In a SaaS company the cost of goods sold includes not only the cost of running the software (e.g. How to Compensate Your SaaS Sales Reps. The Assembly Line structure is the go-to sales structure for small and mid-sized companies. The Assembly Line Sales Team Structure. However, almost all of a SaaS company’s information is contained on its income statement. And marketing teams don’t scale linearly with other departments, so the need for a team builder can wait longer than either sales or customer success. Amazon AWS bill), but also the costs of providing on-boarding and support. As a SaaS sales leader, you’re facing many of the same problems as other sales teams, but they’re often more intense at a SaaS business. In the most basic sense, the strategy breaks down the sales process into individual tasks. In this article, we discuss the best ways to structure an income statement so it becomes more useful to SaaS business owners. In this episode of LTV, Kyle lays out the cold, hard numbers and provides a roadmap for structuring quotas and commissions for SaaS sales reps. Which SaaS sales model to choose for your company? Two Key SaaS Metrics that Predict Your Company’s Potential Size ... let’s say 60000, and then dimension #1, which in my case is a department number (for example, 100 – Sales). Going back to our darts analogy, cost-plus pricing ensures you’ll at least be landing on the board—but anything beyond that is left to chance. Pricing model is a broader term, pointing out to how to price software as a service as a whole. ... that depends on your billing model. For a SaaS company, those costs might include things like product development and design, the company’s own SaaS providers, and the costs of the team. Figuring out how to properly compensate your salespeople is one of the toughest challenges when building a scalable SaaS sales process. Learn how to structure your sales process and build better sales teams as a B2B SaaS company. Then, people are hired to handle each individual task. Common SaaS Department Structure. In certain companies, sales can’t affect this, so it’s not worth complicating their compensation by factoring in gross margin. Recurring revenue is the lifeblood of your business, and churn is a constant concern. CMOs in SaaS companies head 35% of companies in the $20-50M ARR range, 40% at $50-100M and 53% at $100M+. Cambridge Dictionary defines structure as “the way in which the parts of a system or object are arranged or organized, or a system arranged in a way.”