[xivzgrev]

Wow for SDR, 0.75xMRR for each demo? So if your typical MRR is $1000, you'd pay $750 per demo?

My wife used to be SDR and I seem to remember she got paid much less, maybe like 0.1xMRR.

Obviously your economics work & scale, just curious to understand how - is your close rate really high?

If an AE closes an annual deal (worth $12k in this hypothetical), and there were 4 other demos that didn't close, then you are paying $2000 to AE and $3,750 to SDRs, or almost half of your revenue on comp.

[ghiculescu]

Yes your close rate needs to be 50% for this math to work. And you only pay for demos booked from a target account or ICP list.

But even with your numbers, a payback period of 6 months is very very cheap in b2b SaaS. You don’t pay commission in the second year the customer is with you and you expect customers to stick around for 5+ years (ideally much longer; it’s the inverse of your churn).