How SaaS Founders Should Compensate Reps on Multi-Year Deals

How SaaS Founders Should Compensate Reps on Multi-Year Deals

Jul 31, 2026
SaaStr ARMARM Gtm_strategy

The Gist

  • Early-stage SaaS should pay full commission on upfront cash.
  • Later-stage companies often reduce Year 2/3 commissions to 25%.
  • Guardrails on discounting are critical to prevent revenue leakage.

RevBots.ai View:

Align sales comp with cash flow needs, but watch for discounting risks in multi-year deals.

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