Pros and cons of paying sales commissions on invoice collection

Hello everyone,

I’m curious to hear your thoughts on paying sales commissions on a vested schedule, for example when invoices are collected.

This method seams to be gaining popularity among SaaS companies.

Potential benefits that we heard of are:

• improving cash flow;
• reducing the cost of growth;
• incentivize sales reps to focus on building successful long term relationship with customers;
• reducing churn by bringing new customers that are a better fit.

I’m interested in hearing your thoughts and experiences on this topic. Do you pay sales commissions on invoice collection at your company? What are the pros and cons of this approach? How has it worked for your team?

I look forward to hearing your feedback and insights. Thank you!

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