ICONIQ Capital · 2023-06-28
· 1072d
SaaS Sales Compensation Redesign: Shifting Incentives Toward Revenue Quality and Expansion
ICONIQ Growth research reveals how SaaS go-to-market leaders are restructuring sales compensation in response to market efficiency pressures, shifting from volume-based metrics to revenue quality and customer expansion focus. Key changes include aligning SDR incentives with pipeline creation rather than lead volume, implementing multi-metric compensation tied to net revenue and net dollar retention, and increasing commission rates for expansion revenue over new logo acquisition.
Metrics in this report
Net Dollar Retention
105-115%
recent benchmark range
SaaS companies (down from 130%+ two years ago)
Net Dollar Retention Peak
130%
peak historical
Best-in-class companies two years ago
On-Target Earnings (OTE) Fixed-Variable Split
50-50%
classic
Software sales representative standard structure