I'm
currently running a SaaS and I'm starting to look around to hire the
first sales rep / sales agent, so the last few days I've read a lot
about creating a sales plan, commissions, base salary and so on.
At
the moment I haven't a lead system/generation, so the person will also
need to find leads and contact them (cold calls). I'm also thinking
about going 100% commission to start, given at each payment of the
customer (usually monthly recurring).
Talking with some sales
guys I've been told that a fair commission would be around 40-50% and I
think it's a lot. What is the average commission paid in B2B SaaS sales?
If
you want you can also write more how's the structure/plan, if you get
leads or if you have to find them, and any other info you think it'd be
useful =)
It varies greatly, but in the end, it's not that complicated to figure out. You want a sales person to continue selling your product for a long time. Therefore, for the relationship to be sustainable, the saleperson needs to make decent living. I have seen anything from 30%-40% commissions on sales, but no base salary, to a good base salary and 1% of commissions (which turn out to be about 25%-40% of base salary at target).
A very genenous offer would be 50% commission. Just keep in mind that the number doesn't matter that much. What matters is how it goes after a few months: either the sales person is starting to see money coming in, or not. If not, they'll move on and it's bad for you.