Schnaars: Sales Comp Should Incentivize Upfront Cash Over Quick MRR
Scott Schnarz · How the Relationship Changes Between CEO and VP Sales After Funding · Dec 20, 2017 · at 10:31
Scott Schnaars, VP of Sales at Dynamic Signal, explains how structuring sales commissions around upfront cash and longer contracts improves customer economics.
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“So if we can get cash up front, I'd rather pay a little bit more on that cash up front than just the fact that you got a, ah, you know, a quick deal for some quick MRR. If it's a longer term agreement, that means the customer's gonna be a lot more invested. You're gonna have a much more valuable customer, and the lifetime value of that customer and the CAC associated with it is gonna go down significantly.”
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