Saas News Hubb
Advertisement Banner
  • Home
  • SaaS
  • SaaS News
  • Contact
No Result
View All Result
  • Home
  • SaaS
  • SaaS News
  • Contact
No Result
View All Result
Gourmet News Hubb
No Result
View All Result
Home SaaS News

Dear SaaStr: Is it Ethical For a Startup CEO to Accept a Sales Commission for Deals They Close Themselves?

admin by admin
March 18, 2023
in SaaS News


Q: Dear SaaStr: Is it Ethical For a Startup CEO to Accept a Sales Commission for Deals They Close Themselves?

It’s a bit odd, because you want the CEO’s incentives to be aligned with the whole company’s, not just her or his individual efforts.

An annualized bonus for meeting the stretch plan is a great idea for a CEO. But not a deal-by-deal commission like a sales rep. It’s a bit of a flag of someone not going big, of not seeing the real win in their equity, not just in a short term contract or two. A CEO who optimizes on short-term comp never really goes the distance.

But still — I did it once. Once, when the economy was in the dire straits it was in during ‘08-’09, and it looked like the world was over.

I went to several of our big customers, and asked them to pay more then, and to pre-pay up front. Even though their contracts weren’t up.

And they did it. All 3 of them. It basically brought in enough cash to fund us for the better part of a year, given our low burn rate.  Another almost $400,000 in cash.  That wasn’t for the most part due for almost a year.

I then asked the board for a $10k bonus. Just enough to acknowledge a little respect for the somewhat insane task of bringing in many hundreds of extra thousands of dollars from customers that had no contractual incentive to pay it. I needed to feel a little nod that I had Done Good, done something crazy and hard to do, for everyone, all the stakeholders.

It was a rough board meeting.  They said No.  So that sort of tells you how folks usually view a CEO taking a sales commission.

(Note: an updated SaaStr Classic answer)

Published on March 18, 2023



Source link

Previous Post

What is an Infographic Resume? Examples and Templates

Next Post

5 Ways to Recognize Equal Pay Day

Next Post

5 Ways to Recognize Equal Pay Day

Recommended

Business automation is the key to efficiency and productivity

3 months ago

Meet Flo, the New Salesforce Workflow Character

3 weeks ago

How to Build an Unbeatable SaaS Company

3 months ago

Why You Should Use Collages In Your Marketing Videos

1 month ago

The 18 Most Creative Ad Campaigns in History

2 months ago

5 Best Screen Recording Software For PC (2023) – Free & Paid

4 months ago

© Saas News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • SaaS
  • SaaS News
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • SaaS
  • SaaS News
  • Contact

© 2022 Saas News Hubb All rights reserved.