Roberge: PLG sales reps should earn higher commissions on expansion revenue
Mark Roberge · Mark Roberge: The Framework for How Startups Should Scale into the Enterprise -Stage 2 Capital|E1176 · 20VC with Harry Stebbings · Jul 12, 2024 · at 19:18
Mark Roberge, Managing Director at Stage 2 Capital and former CRO at HubSpot, outlines a sales compensation model designed to align rep behavior with PLG land-and-expand customer behavior.
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“I would do something like this, Harry, you're a salesperson, your job is bringing customers. I'm going to pay you know, three percent. Rate on the first ACB from a customer and five percent on any expansion revenue. So now it's like, oh, sweet. Okay. I get it. So I will make the most money if I sell customers on a very small ACB to start and expand them later.”
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