SaaStr

AUGUST 9, 2021

Here’s how: Align Compensation: If you plan to close enterprise deals, you must be prepared to pay for the right salespeople. At TripActions, the sales reps are compensated based on the customer’s adoption and successful use of the platform. Subscribe. Create a Sales Engine.

Scale 293

Scale Sales Hiring Enterprise Sales 293

Tom Tunguz

JANUARY 4, 2016

It’s the most provocative idea about employee compensation I’ve found. But, this compensation strategy must be complemented with a plan to reward the exceptions, the 10xers. As Daniel Kahneman showed in Thinking Fast and Slow , humans think in normal distributions.

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Compensation Startup Benchmarks Engineering 100

Tom Tunguz

OCTOBER 28, 2013

There’s an interesting phenomemon occurring in founder compensation for post-Series A companies: founding CEOs are swapping cash for larger equity stakes in their companies. Founding CEO salaries, post Series A, have fallen by about 24% while founder equity has increased by 32%. This trend is broad.

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Compensation Trends Startup Benchmarks 100

SaaStr

JUNE 22, 2021

In the report, they pursue the latest customer success trends and predictions, including significant challenges, top goals, team organization, key benchmarks, compensation and various technologies. .

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Scale Customer Success Scaling Compensation 278

Sales Hacker

APRIL 19, 2022

In this article, I’ll outline the principles of compensation design , how to build sales compensation plans , and include resources to set OTEs and quotas that keep your reps happy and hungry for more. Bravado’s 2022 State of Sales Compensation Guide showed that 54 percent of reps missed their quota.

Compensation 98

Compensation Sales Recruiting Sales Hiring Retention 98

User Pilot

JULY 21, 2024

According to our benchmark, the average month-1 retention rate in SaaS companies is 46.9%. Let’s explore our product metrics benchmark and learn: The definition of month-1 retention rate and why it matters. Check our product metrics benchmark report. Average month-1 retention statistics for different segments.

Benchmarks 105

Benchmarks Retention Healthcare Scale 105

SaaStr

OCTOBER 3, 2022

On top of all this, build a compensation structure to drive desired behavior. These benchmarks should be well-defined. Try to attach data to every action and make your plays repeatable at scale. Land the account. Know your metrics, and develop a robust qualification method to identify the best opportunities. Show value and expand.

Scale 273

Scale Sales Hiring Sales Recruiting Scaling 273

Sales Hacker

DECEMBER 12, 2017

With increasing focus on grit and many claims of meritocracies in organizations across the country, why does variable pay compensation even exist? On top of that, why are sales people some of the few employees subject to variable compensation structures? What is Variable Pay Compensation Anyway?

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Compensation Sales Hiring Sales Payment Services 99

The Angel VC

NOVEMBER 18, 2017

A founder’s cash compensation doesn’t reflect the value which she contributes to the company anyway, so who cares if one of them gets a little more than the others. Notes The numbers in the model reflect what I think is market and fair based on the data points that we have and some industry benchmarks that we were able to get.

Technical Review 279

Technical Review Compensation Company Culture Benchmarks 279

Tom Tunguz

SEPTEMBER 3, 2017

But it’s key to understand the theory and the benchmark data that governs the creation of sales commission plans to create a good one for your business. Sales compensation is communicated in OTE, On Target Earnings. Can the business’s balance sheet sustain a commission payout twice the benchmark median?

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Sales Recruiting Sales Hiring Data Sales 160

SaaStr

NOVEMBER 30, 2023

The four stages of growth are: Early stage Early growth Growth Pre-IPO Each of those stages has key GTM milestones, benchmarks, and team-building strategies that allow you to grow effectively. That’s a big change, and they can do it by building the first incentive compensation plan that includes variable compensation for specific goals.

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Scale Sales Hiring Scaling Outsourced Development 274

Buffer Resources

JANUARY 25, 2024

Why salaries are transparent at Buffer Compensation is a very important and sensitive element of work. Compensation is directly connected with life overall, in supporting peoples’ livelihoods and their dreams. We have chosen to create a system where conversations around compensation can happen in the open.

Systems Review 134

Systems Review Compensation Benchmarks Scale 134

Buffer Resources

JANUARY 25, 2024

Why salaries are transparent at Buffer Compensation is a very important and sensitive element of work. Compensation is directly connected with life overall, in supporting peoples’ livelihoods and their dreams. We have chosen to create a system where conversations around compensation can happen in the open.

Systems Review 134

Systems Review Compensation Benchmarks Scale 134

SaaStr

APRIL 27, 2023

Some interesting benchmarks here for you to think about. Co-founders as a group, on average, owned about 23% pre-IPO. Let’s call it 25% if we add in small equity holder co-founders that don’t show up in public filings. Meritech Capital Partners analyzed some of the data as well, and in their subset, founder CEOs owned 10.6%

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SaaS Cloud Benchmarks Data 321

Tom Tunguz

SEPTEMBER 2, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Zendesk is a 700 person company that builds customer support software. Zendesk went public earlier this year.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Chaotic Flow

MAY 13, 2014

These stages define a SaaS Metrics Maturity Model that provides a SaaS metrics roadmap along with benchmarks at each stage of development for SaaS companies that aspire to become a Metrics-driven SaaS Business. Sales is compensated on recurring revenue and avoids discounts based on total contract value.

Metrics 135

Metrics SaaS Compensation Benchmarks 135

Tom Tunguz

AUGUST 12, 2015

At some point after the Series B, the startup should create a compensation committee that includes the head of HR and two board members who are not employees of the company. Among other responsibilities, the compensation committee establishes standard offer ranges, which include salary and equity, for all the levels of new hires.

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Startup Compensation Finance Benchmarks 113

SaaStr

SEPTEMBER 19, 2019

Some interesting benchmarks here for you to think about. Co-founders as a group, on average, owned about 23% pre-IPO. Let’s call it 25% if we add in small equity holder co-founders that don’t show up in public filings. As time has gone on, it’s been more and more clear to me co-founder contributions are rarely equal.

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SaaS Cloud Benchmarks Development 255

Unbounce

SEPTEMBER 28, 2020

For instance, when organizations make equal pay a priority , they’re 19% more likely to exceed industry-average levels of productivity and 54% more likely to beat industry-average turnover benchmarks. In other words, businesses that value equality end up with less turnover and higher productivity. . There’s more.

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Compensation Technical Review Software Review Benchmarks 141

Tom Tunguz

NOVEMBER 7, 2019

Compensation strategies for customer success are evolving to include a larger fraction of performance compensation. The greater the opportunity to upsell account, the greater the likelihood of performance-based compensation. There are a lot of different benchmarks for customer success performance.

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Compensation Scale Benchmarks Customer Success 113

The Angel VC

MARCH 3, 2015

SaaS Benchmarking” Tunguz we can see that the 18 publicly traded SaaS companies that were founded within the last ten years took five to eight years to reach $50M in revenues, with 14 out of the 18 being in the six to seven years range. (1) So how fast do you have to grow in order to become a $100M company? 1M, T2D3, 50%?

Compensation 185

Compensation Business Model Startup Benchmarks 185

InsightSquared

MAY 7, 2019

For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources. These processes are important to track accurately and benchmark to achieve the SaaS performance expected in the market. Typical SaaS Sales Metrics.

Scale 102

Scale Sales Hiring Metrics Sales 102

Tom Tunguz

JUNE 1, 2015

Often, it’s easiest for individual managers to do this individually, starting with the stars as benchmarks and move down and across the matrix to fill out the rest. These calibrations ultimately inform compensation during annual performance reviews. Next, the management team meets to calibrate their categorizations.

Startup 100

Startup Compensation Benchmarks Investment 100

Tom Tunguz

OCTOBER 20, 2015

Next, we calculate the annual commission at 9% of ACV and assume that commission is 50% of total compensation - so we double the commission to figure the take home pay, excluding benefits, of a salesperson attaining quota. When planning your startup’s sales commission plan for next year, consider using these benchmarks.

Startup 100

Startup Outsourced Development Compensation Sales 100

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. Since these companies aren’t growing quickly, they have to compensate with high cash flow and high EBITDA margins if they want to be seen as attractive. The post Rule of 40: How to benchmark your SaaS growth appeared first on OPEXEngine. A final word on the Rule of 40.

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Benchmarks SaaS Sales Hiring Scale 52

OPEXEngine

APRIL 3, 2020

In light of the pandemic’s effects on 2020 budgets, we have heard from a number of members of the SaaS community with specific questions regarding shifts in how sales teams are organized, incentivized, and compensated. Our next poll has 4 questions regarding Sales Quotas and Compensation, it should only take 1-2 minutes to complete.

Sales Hiring 72

Sales Hiring Benchmarks Compensation SaaS 72

Sales Hacker

NOVEMBER 10, 2023

Measuring “Time to Value”: Quantifiable Benchmark: This metric provides a benchmark for onboarding efficiency. GTM Total Compensation and Rewards Manager at Vanta – more details here. .” This metric gauges the duration for users to realize the benefits, measuring onboarding efficiency.

VP of Engineering 126

VP of Engineering Scale Outsourced Development AI 126

OPEXEngine

JUNE 4, 2020

Last week we published the most recent SaaS & Software benchmarks in our platform used by companies in their FP&A analyses for management, boards and investors. In the 2020 Benchmarks, we added a number of new benchmarks around compensation expense, plus, a measure of the SaaS Cash Conversion Rate, popularized by Bessemer.

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Benchmarks SaaS Technical Review Software Review 45

ChurnZero

NOVEMBER 22, 2021

In this article, we cover: Budgeting Benchmarks: Do They Cause More Harm than Good? Budgeting Benchmarks: Do They Cause More Harm than Good? If you’re in the Customer Success industry, you’re probably familiar with these popular budgeting benchmarks: CSMs should manage $1 million to $5 million in Annual Recurring Revenue (ARR).

Customer Success 98

Customer Success Sales Hiring Headcount Benchmarks 98

OpenView Labs

NOVEMBER 12, 2020

When we were preparing the 2020 expansion SaaS benchmarking survey, our biggest question was: “How did COVID-19 and the economic downturn affect private SaaS companies?” Their compensation is directly linked to the revenue that they generate for the business. ” In short: It made SaaS companies even stronger.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

OPEXEngine

DECEMBER 17, 2019

The Value of Benchmarking. By tapping into this horde of data, a skilled SaaS CFO can create comparable company benchmarks to validate their reporting methodology, then use these to drive their annual planning process and evaluate business performance on several levels. Top-Down Planning: Using Benchmarks.

Benchmarks 40

Benchmarks Metrics Headcount SaaS 40

OpenView Labs

MARCH 8, 2021

Compensation. A Guide to Creating a Scalable Sales Compensation Plan. In this guide, you’ll find tips for designing sales compensation packages that yield results and actually scale. Metrics and benchmarks. 9 Sales Benchmarks for Building a Scalable Sales Machine. Show Me the Money!

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Sales Hiring Scale Sales Recruiting B2B 80

Intercom, Inc.

OCTOBER 26, 2018

Compensation in sales is usually tied to revenue (qualifying more leads, closing more deals, etc.), Other times we simply ask customers how they’d define success, and use their input as a benchmark. By understanding previous wins and failures, our team helps customers avoid common mistakes and achieve quicker success.

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Sales Hiring Customer Success Scale Underperforming Technical Team 123

OpenView Labs

SEPTEMBER 23, 2019

Benchmarks are the only check on whether or not a business is generating efficient growth. Benchmarks act as a swim lane for operating a business and allow operators to build a hyper-growth business that provide permission to believe. How Do I Know What My Benchmarks Are? You have your peer benchmark set. Horizontal).

Benchmarks 40

Benchmarks Data SaaS Scale 40

Totango

JULY 17, 2024

Don’t fight over the same bone: By implementing a variable compensation structure, we’ve been able to prevent situations where cross-functional team members are fighting for the same opportunity. Once you have that foundation, you can determine the metrics or proxy metrics to measure and benchmark.

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Revenue Sales AI Customer Success 100

ProfitWell

NOVEMBER 13, 2019

Comparing KPI data against benchmarks highlights whether your company’s performance is improving or not in that area. KPIs are also useful for establishing internal benchmarks for progress. We’ll cover why they’re important, how to calculate them, and where the industry benchmarks lie. Forecast Demand. SaaS Bookings.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

OPEXEngine

APRIL 23, 2020

Benchmarking your company is more important now than ever. In the next few weeks we will be delivering the updated 2020 SaaS Benchmarking in our all-new BenchmarkEngine™ platform. Schedule a demo with me here and learn how you can start benchmarking your company now. To register, click here.

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Sales Hiring Benchmarks Payments Compensation 59