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Dear SaaStr: What’s the Best Way to Build a Comp Plan for Account Managers Focused on Upsell?

  • Building a commission plan for Account Managers focused on upsell requires aligning incentives with outcomes like customer satisfaction and revenue growth.
  • Key components include a base salary with a split of 70% base and 30% variable, tied to metrics such as Net Revenue Retention (NRR).
  • Incentivizing upsells and cross-sells at a lower rate than new deals, implementing customer satisfaction bonuses, and clawbacks for churn are crucial strategies.
  • Simplicity, clear targets, and rewards for exceeding goals are vital in ensuring AMs are motivated to focus on long-term account health and company success.

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