I keep coming back to a simple truth: comp plans are behavior design.
If you pay for the wrong thing, you will absolutely get the wrong motion. The cobra bounty story is the perfect analogy for sales comp: reward dead snakes, and eventually someone starts breeding snakes.
That’s exactly what happens when companies bolt old-school SaaS compensation onto a consumption-based GTM.
In a subscription model, the rep can close the deal, book ARR, and move on. In a consumption model, the “close” is often just the starting line. Value realization, adoption, expansion, and retention are all downstream of that initial land.
That changes everything.
What stood out to me most is that usage-based pricing doesn’t just force a pricing rethink. It forces a role design rethink.
The clean handoff between sales and post-sales gets blurry fast. In a consumption motion, growth is shared across AEs, CSMs, solutions architects, product, and sometimes PLG. If you don’t redefine swim lanes, you end up with a classic attribution mess:
- what was organic growth?
- what was sales-assisted?
- what should a rep actually get paid on?
That’s where a lot of teams get into trouble. They compensate on revenue that would have happened anyway, then wonder why CAC payback stretches and rep productivity becomes noisy.
The part I really liked was the emphasis on measuring reps on what they can actually control.
That sounds obvious, but most companies don’t do it well. In consumption, macro and customer behavior can swamp rep effort. A customer can spike because their business is booming, or contract because their market falls apart. If comp is tied too tightly to raw usage without context, you’re basically paying commission on externalities.
From a growth/operator lens, that’s dangerous because it creates two bad outcomes at once:
you overpay for non-incremental growth, and under-incentivize the hard work of creating new demand.
The most sophisticated idea here, in my view, is the need for actual instrumentation between product usage and CRM. That’s the unlock.
If you can tag workloads, products, teams, or use cases back to opportunities, you can start separating:
- baseline / organic consumption
- sales-sourced expansion
- new workload adoption
- retention / protection work
That’s where a modern RevOps org has to go. This isn’t just comp design anymore. It’s data architecture for GTM.
I also loved the control-group thinking: leave a subset of self-serve customers untouched, compare their growth curve to rep-touched accounts, and use that delta to estimate sales impact.
That’s a very growth-style approach, and honestly, more SaaS companies should borrow from experimentation discipline here. Too many orgs treat sales contribution as a given instead of something to be measured.
On the comp frameworks themselves, I think the tradeoffs were spot on.
Paying on units — logos, workloads, deployed apps — is clean and easy to understand. Great for acquisition teams. But if you don’t add quality thresholds, reps will optimize for volume over value. That’s cobra farming in SaaS form.
Paying on gross billings creates alignment around customer usage and can smooth rep earnings, but quota-setting starts to feel like a black box. And if a big chunk of the book would naturally expand anyway, you’re paying reps to “own” momentum they didn’t create.
Paying on incremental run-rate is probably the most behaviorally accurate for expansion teams. You’re only rewarding net-new growth above baseline. I like that a lot in theory. But operationally, it’s harder, noisier, and much tougher to explain. The minute comp plans get too complex, trust drops. And once trust drops, motivation follows.
Then there’s the commitment model — essentially reintroducing contract value into a usage GTM. This is where I think a lot of companies over-rotate because finance loves predictability. Totally understandable in this market.
But there’s a real cost.
If you over-incent commitments, reps start pushing customers to estimate future usage too early, and suddenly the frictionless promise of consumption pricing disappears. Longer cycles, more negotiation, more shelfware risk. You get cash visibility, but maybe at the expense of velocity and customer fit.
That tradeoff matters a lot right now.
We’re in a SaaS environment where efficient growth is back in vogue, multiples still reward durable expansion, and boards are scrutinizing net retention quality more than ever. In that context, the best comp plans are the ones that balance three things:
behavioral clarity, forecastability, and customer value realization.
Miss one, and the model gets shaky.
My biggest takeaway is this:
A consumption GTM needs a compensation system that reflects the actual engine of growth. Not the old engine. Not the finance team’s idealized version. The real one.
If I were advising a seed to Series B company moving toward usage-based pricing, I’d start with a few questions before touching comp mechanics:
What behavior are we trying to create?
What growth is truly sales-driven versus product-driven?
Where does post-sales own expansion versus protection?
Can reps understand the plan in 2 minutes?
If the answer to that last one is no, I’d simplify before doing anything else.
Because the best comp plans aren’t the most elegant on a spreadsheet. They’re the ones that make the field say: I know exactly what winning looks like.
And in consumption, that definition of winning has to go far beyond closing the initial deal.