While you’re busy preparing for 2018, you look back at your 2017 budget to analyze your spend and make adjustments for the following year. As a subscription-based business, you know that one of the largest expenses you’ll incur is employee compensation.
SaaS businesses are challenged at every stage of their growth to align investments with business objectives. Once their revenue targets are set, business leaders need to devise sales strategies, set quotas, assign territories and sales roles as well as implement multiple incentive compensation plans to motivate their sales, professional services, and customer success teams.
Developing your budget is a systematic method of achieving strategic goals. Your corporate budget is used to monitor progress toward those goals, help control spending, and predict cash flow and profit.
Our partner, OPEXEngine, estimates that SaaS companies spend almost 70% revenue on compensation and benefits, which is 10% less than five years ago. As companies invest in more productivity applications, they are able to get a full look at their organization and make data-driven decisions to better align commission dollars.
If you’re a public company, your 2018 budget also has to consider the cost of ASC 606. To help you better prepare for budgeting season, we’ve teamed up with OPEXEngine to deliver their latest benchmark metrics on how leading SaaS companies set their optimal budget and structure during budgeting season. We’ve also developed resources to help subscription-based businesses prepare for budgeting season.
To learn more about how SaaS businesses are structuring sales, managing sales compensation and productivity, watch our webinar recording with OPEXEngine.