Commission or bonus on Upsell/Cross-sell, if at all?

caseybaldin · 2022-04-20T22:06:04+00:00

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I'm curious how other companies compensate their CS teams for cross-sell/upsell opportunities, if at all? We're trying to figure out the timeline after a Sales to CS handoff when CS would get credit for the cross-sell/upsell. Should they be commissioned on that amount or part of bonus metrics? At present, CS is responsible for renewals.

I'm looking for any input.

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Comments

Ian Remington

Hey Casey - Similar to Jordan, we use NRR as our primary barometer. Our CSMs are assigned a portfolio and are paid based on the total expansion. We set target goals (which vary depending on account size) that range from 110% - 130% or so. The reps are paid out quarterly in a waterfall payout dependent upon the percentage towards goal. Happy to chat with you further on this!

caseybaldin

https://gaingrowretain.com/discussion/comment/9934#Comment_9934

Helpful! I was thinking something like this too. Glad it's working for other orgs.

Grant

@caseybaldin this seems to be the never ending debate! I'm not sure this is a "one size fits all" answer but this blog post might be helpful ☺️

https://www.planhat.com/community/salary-models-in-customer-success/

Jordan Silverman

Hi @caseybaldin !

We indirectly compensate for upsells and cross-sells on the CS side. What we do is bonus quarterly on NRR for each CSMs portfolio.

The below breakdown is true for upsells, cross-sells, downgrades, and churns.

Month 0-1: 100% Sales

Months 2-6: 50% Sales/50% CS

Months 7+: 100% CS