If you are a SaaS Attorney, you need to know how Salespeople are Compensated
- David Cohen
- Jul 24, 2024
- 1 min read
Updated: Jan 12
Why?
Because their compensation structure directly impacts your workload and strategy.
If sales performance is assessed and compensated quarterly, you'll find yourself under water in a rush of deals at the end of the quarter. So, end of quarter holiday plans?
Maybe wait for next month.
Sales compensation in enterprise SaaS typically puts a heavy weight on variable pay, which leads to high-pressure situations around deal closures.
At performance deadlines, you will see a flurry of creative deals and last-minute negotiations—a few Hail Marys to hit quota numbers.
And there will be a lot pushing, complaining, begging and anger leveled against you. Sales rely on you to close their deals, and feel very insecure and scared that their months, and even years, of hard work is now in the hands of someone else, at the very last mile.
It's not personal; it's just the nature of the game.
Understanding these dynamics is important because it will help you align your legal strategy with sales objectives to ensure deals are closed efficiently.
The knowledge can also serve as a shield against a person that steps over the line…which happens now and again.
👉 Check out and Download "10 Contract Basics to Know as a SaaS Attorney" before your next SaaS contract review!
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