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.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

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