“Looking at the revenue or let's say bookings minus the commissions that were paid to generate that revenue is a very insightful number”
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Said on FP&A Today
Rich Habits Podcast · 192: Are Boring Businesses The BEST Way To Get Rich?
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Paid sales reps commissions up-front, before the long-term revenue stream materialized
“Looking at the revenue or let's say bookings minus the commissions that were paid to generate that revenue is a very insightful number”
“The trail commission structured usually it's between 0.15 to 0.175 um and then the upfronts are anywhere between sort of 65 to 75 points up front as well so like it's decent and but because everything pays trail like every million bucks you draw down like it's straight on to your straight onto your recurring revenue book”
“And eventually, that led me to starting a door-to-door sales company. And we grew that to 400 sales reps.”
“Take $36,000 divided by the 200 commission you get per sale and you'll arrive at 180 sales in order to earn that much money”
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