How much is the average sales commission in B2B SaaS sales?


1

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 =)

Sales B2B Saas Commission

asked Jul 20 '14 at 22:46
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James
6 points

1 Answer


2

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.

answered Jul 22 '14 at 03:53
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Alain Raynaud
10,927 points

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Sales B2B Saas Commission