AI Sales Compensation Is Changing… Quietly

I read this intriguing article earlier this week: “AI Sales Compensation Shifts: Post-Closing Usage Models.”

It highlights the evolving commission plans and policies within AI companies, particularly relevant for those involved with SaaS contracts, sales team policies, and related transitions. That includes roles such as Chief Revenue Officers, heads of HR, in-house and outside general counsel lawyers, tech transaction attorneys, and various consultants.

The most interesting observation (to me at least) from the article is one of shifts in compensation models for sales personnel.

Usually, software salespeople were compensated for closing deals, but now there is a trend towards paying them based on the post-closing, ongoing usage, and consumption of an AI company's products and services by signed clients.

From an AI company perspective, this makes sense as client contracts are now getting structured around actual usage rather than the standard SaaS calculation of seats multiplied by contract duration.

However, this raises questions about the implications for sales teams. Sales personnel invest significant effort to onboard clients, yet their compensation now relies on factors that occur after their involvement.

This change prompts a need for further understanding of how these new compensation structures function and their impact on sales strategies. I would love to hear from those familiar with this shift who can share more about this ongoing transition.

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