The document discusses sales compensation strategies for SaaS companies. It covers aligning comp plans with business goals and stage, metrics like ARR and MRR, handling both SaaS and on-premise sales, lessons from Hubspot's experience evolving their comp plan through different growth stages. Key topics include balancing short-term quotas with long-term customer value, adjusting plans based on product adoption lifecycle, and using metrics and clawbacks appropriately.

8. Company Stage - Skok Scaling the Business David Skok Presentation to MTLC Dec 2010 Search for Product/Market Fit Search for Repeatable & Scalable Sales Model Conserve Cash Invest Aggressively

11. Skok - Sales Strategy Impact on CAC A rough estimate of CAC versus Sales Complexity http://www.forentrepreneurs.com/sales-complexity/ David Skok Presentation to MTLC Dec 2010

15. Establish Target Pay - Basics Point of Excellence Top 10% of performers Target Total Comp (TTC) Aka: On Target Earnings (OTE) MIX Ratio of base and incentive relative to TTC Base Target Incentive Upside

17. Mix and Upside * Sales Compensation Made Simple World at Work Press P.42 90 80 50

28. Attainment Distribution Problems * Sales Compensation Made Simple World at Work Press P.132 Team of losers- goals too high Stars only – territories uneven

32. The Cash Flow Gap -Skok David Skok Presentation to MTLC Dec 2010 Cash Gap (Slightly later breakeven point, because Gross Profit is less than MRR) 11 months to breakeven

37. HubSpot’s Marketing Platform Get Found Convert Analyze Advice Create SEO Mobile Social Media Promotion Drive Conversion Marketing Automation Social Media Analysis Analysis Support Experts Word Press SeoMoz Coder HootSuite Unbounce Marketo Radian6 Google Analytics On Your Own Consultant

38. Sales Model HubSpot http://www.forentrepreneurs.com/sales-complexity/

39. SaaS Sales Comp - HubSpot Case Study

40. Compensation Structure – Strategy Match Laggards Innovators Product Adoption Lifecycle Early Majority Late Majority Search for Product Market Fit

43. Search for a Repeatable Sales Process Laggards Innovators Search for a Scalable & Repeatable Sales Process Early Majority Late Majority

44. Comp and LTV Misalignment

46. It worked … but LTV calculations are unclear and often a lagging indicator New cohorts retained at much higher rates Customer Cohort … for a while

47. Scaling the Business Laggards Innovators Scaling the Business Early Majority Late Majority

49. Will this work?