(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. Figuring out how to properly compensate your salespeople is one of the toughest challenges when building a scalable SaaS sales process. ... that depends on your billing model. In the most basic sense, the strategy breaks down the sales process into individual tasks. 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. Which SaaS sales model to choose for your company? Pricing model is a broader term, pointing out to how to price software as a service as a whole. 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. Learn how to structure your sales process and build better sales teams as a B2B SaaS company. Recurring revenue is the lifeblood of your business, and churn is a constant concern. However, almost all of a SaaS company’s information is contained on its income statement. 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. 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. CMOs in SaaS companies head 35% of companies in the $20-50M ARR range, 40% at $50-100M and 53% at $100M+. The Challenge of SaaS Sales. It is also very popular among SaaS startups. The Assembly Line structure is the go-to sales structure for small and mid-sized companies. As we learned at office hours with Hollie Wegman, the role of the CMO is team builder. In a SaaS company the cost of goods sold includes not only the cost of running the software (e.g. The Assembly Line Sales Team Structure. Then, people are hired to handle each individual task. How to Compensate Your SaaS Sales Reps. 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. In certain companies, sales can’t affect this, so it’s not worth complicating their compensation by factoring in gross margin. Amazon AWS bill), but also the costs of providing on-boarding and support. In this article, we discuss the best ways to structure an income statement so it becomes more useful to SaaS business owners. Common SaaS Department Structure. 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.”