Compensating Sales in a Usage-Based World
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
The Core Tension
- Traditional sales comp pays on a fixed contract value signed at the moment of the deal.
- In usage models the real revenue depends on how much the customer later consumes.
- Paying full commission on an uncertain number can overpay reps for accounts that never ramp.
- The framework must reward landing customers and the consumption that actually follows.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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