SaaS sales commission?

by Nick Kuh

I’m building a chat SDK for web and mobile apps which I plan to license to tech founders.

The product is likely to be licensed out for around $500 per month.

There will be hosting costs incurred on my side but on the basis of the above what kind of sales commission would other IndieHackers recommend I consider paying out?

I've got a couple of people in mind who would be up for a commission-only arrangement - I want to make the offer attractive for them but I'm not really sure what percentage would be expected.

And advice greatly appreciated 🙏 !

posted to

Software as a Service

on February 21, 2021

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1

Check this out https://kazanjy.svbtle.com/saas-sales-staffing-and-scaling-model

baird

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3 years ago
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  Thanks for the link @baird - trying to get my head around the numbers in it! As I'm paying commission-only/no salary for now do you think @cyberbadger's suggestion of 50% revenue for the first 2 years sounds about right?
  
  Originally I was thinking the commission would be on the lifetime of the customer but is it better to cap it?
  
  Nickkuh
  
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  3 years ago
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  Reply
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I'd err on the side of being generous early on. You want them to get excited about bringing you business.

50% of revenue for the first 2 years feels about right. So if someone pays you $10k for 2 years, you will pay the sales rep $5k.

cyberbadger

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3 years ago
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