Our company is seeking benchmarking data related to Sales Compensation in a "Software as a Service" (SaaS) based business.
We are an enterprise class software company that has recently completed a product migration to this new SaaS based model and it seems that the compensation plans for the traditional license model are in appropriate for incenting the desired results. So, we would like to inquire as to what others in a SaaS based business do for things such as:
1) - % of variable as compared to base in arriving at Total Targeted Compensation (i.e. 45/55, 50/50)?
2) - Annual Quota as compared to Total Targeted Compensation (i.e. 5x TTC, or other factors or methods)?
3) - Is commission payment made on cash collections, or bookings, or revenue recognition? Is it bifurcated (i.e. split between cash and bookings)?
4) - How are multi year deals handled within the Compensation Plan?
5) - Are accelerators used? Are there multiple accelerator levels (i.e. 1.25 @ 125% of quota, 2 @ 200% of quota)?
6) - Are bonuses used for things such as multi-year or "large deals"?
If there are other key elements which should be considered, we would appreciate any comments in this regard.
Thanks ...
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Michael Compton CPA
Executive Officer
ATTENSITY GROUP
Fremont CA
United States
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