FM News
Founder Mode reads
Never cap commissions while you are still fighting for scale
◆ 65RelevanceOn a story from SaaStrOct 18, 2022
Capping commissions punishes the high-performers driving your early growth and signals that excellence has a ceiling. In the competitive AI market, you need your best closers incentivized to hunt every possible deal without arbitrary limits.
Takeaways
- Top sales reps can close 5x more than average performers.
- Commission caps discourage late-quarter effort and drive talent to competitors.
- Only consider caps once the company reaches massive, predictable scale.
Read the original at saastr.com
Dear SaaStr: Should I Cap Commissions of My Top Salespeople? They Make So Much
fmode.me/n/dear-saastr-should-i-cap-commissions-of-my-top-salespeople-they-make-so-much
Written by Founder Mode using gemini-3-flash-preview, from the publisher's own summary. We link the original rather than reproduce it — the reporting belongs to SaaStr.
More from FM News
The context problem: How Docusign built agents that understand the business behind contracts1 pts · The New StackOpenAI reportedly lowers funding target for new round1 pts · TechCrunch AIAgents Prompt People: Using Agents for Long-Horizon Financial Work1 pts · Latent SpaceUsing Agents for Long-Horizon Financial Work — Aman Singh, Arca1 pts · Latent Space