SaaS sales commission?

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 🙏 !

    1. 1

      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?

  1. 1

    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.

Trending on Indie Hackers
How many sales did you make on #GumroadDay? 20 comments 🧐 Lessons from hiring and firing my co-founder 14 comments Flowrite launch on Product Hunt ✏️ 13 comments "Get Started" Vs "Get Started for Free" - Which do you think converts better? **Updated with results** 11 comments What industry are you in and what made you want to join this specific industry? 9 comments 10 tips for leveling up your Gmail deliverability 5 comments