May 16, 2025

SaaS Sales Commission Structure for Effective SaaS Sales Compensation

Designing an effective SaaS sales commission structure is a balancing act between motivating your sales team, achieving predictable revenue growth, and controlling costs. The nuances of recurring revenue, long sales cycles, and high customer acquisition costs make SaaS sales compensation different from traditional models.

In this article, we’ll explore how to structure sales compensation plans for SaaS, with real-world SaaS sales commission plan examples, best practices, and tips for scaling compensation as your company grows.

SaaS Sales Commission Structure

Why SaaS Sales Compensation is Unique

Unlike traditional sales, SaaS sales compensation must align with:

Recurring Revenue Models: Monthly or annual subscriptions.
Customer Retention: Revenue is realized over time, not upfront.
Land and Expand Strategies: Smaller initial deals that grow over time.
Long Sales Cycles: Particularly in B2B SaaS markets.

A well-designed SaaS commission structure ensures reps are incentivized to close deals and bring in high-quality customers that stay and grow.

Common Components of SaaS Sales Commission Plans

1. Commission on Annual Contract Value (ACV) or Monthly Recurring Revenue (MRR)

What it is: Reps earn a percentage of the deal’s ACV or MRR.
Example: 10% on $12,000 ACV = $1,200 commission.
Why it works: Ties commission to the value of the recurring contract.

2. Commission on Recurring Revenue Only After Payment Received

Why it matters: Protects against cancellations and churn.
SaaS sales commission on recurring revenue is often split into:
- 50% at contract signing
- 50% after the customer hits 90 days or pays second invoice

3. Accelerators and Decelerators

Accelerator: Higher commission rate after reaching quota (e.g., 10% becomes 15% after 100% quota attainment).
Decelerator: Lower rate below quota to discourage underperformance.
Great for scaling sales compensation for SaaS models with larger teams.

4. Customer Success Hand-off Bonus

Encourages clean handoff to CS team for onboarding and retention.
Can be part of a broader SaaS sales incentive plan.

5. Clawbacks

If a customer churns or fails to pay within a certain period, commission may be clawed back.
Protects your sales compensation plans for SaaS from inflated commissions.

SaaS Sales Commission Plan Examples

Here are three real-world inspired SaaS sales commission plan examples:

Example 1: SMB SaaS Sales Team

Base Salary: $50,000
Quota: $300,000 in new ACV per year
Commission Rate: 8% on all closed-won deals
Accelerator: 12% after exceeding $300,000
Clawback: Within 90-day cancellation window
Payout Timing: 50% on signature, 50% after first invoice

Example 2: Enterprise B2B SaaS Sales Commission

Base Salary: $80,000–$100,000
Quota: $1M in ACV
Commission Rate: 5% on deals under $100k, 7% on deals above
Bonus: $10k for every $500k above quota
Retention Focus: Bonus if deal expands by 20% in 12 months

Example 3: SDR to AE SaaS Sales Incentive Plan

SDRs: Paid on qualified opportunities (e.g., $200/SQL)
AEs: Paid on closed-won ACV ($1,000/month in new MRR = $1,200 annually @ 10%)
Team Bonus: Split bonus for each full-cycle closed deal

Tips for Optimizing Your SaaS Commission Structure

Align with Metrics That Matter
Reward metrics like retention, expansion, and revenue efficiency—not just deal volume.
Use Commission Software
Automate calculations, forecasting, and payments. Tools like Bentega streamline sales compensation SaaS processes.
Keep It Simple
Clear, transparent plans are more motivating and reduce disputes.
Plan for Scaling
Build a structure that scales with team growth and market complexity.
Review Quarterly
Adjust your SaaS sales commission structure based on churn trends, sales cycle changes, or new product pricing.

Final Thoughts

Whether you're building your first SaaS sales commission plan or refining a mature B2B SaaS sales commission model, your strategy should motivate reps, reflect the health of your revenue, and drive sustainable growth. There’s no perfect plan, but by combining best practices, real-world examples, and smart tools like commission software, you can craft a winning approach.

Looking for expert help? Bentega helps SaaS companies build scalable, fair, and performance-driven sales commission structures.