The plan in detail
1 · Account ownership
Every account has a single primary owner. CS owns the account once the land window closes; the originating AE owns it before then (see 4). A named backup CSM covers absence but is never separately commissioned on the same renewal — we do not pay two people for one renewal. CS takes renewal ownership for straightforward accounts on handoff; complex / large-enterprise renewals move to CS only once a dedicated Renewal Manager function exists.
2 · Commission rate — flat 4%, GRR-gated
A single 4% rate on both renewals and expansion. No expansion premium — expansion is cheaper to win than new logo, and the research does not support paying it more than renewal. The 4% is gated on Gross Revenue Retention:
• GRR ≥ 95% → 4.0% (full rate) • GRR 90–95% → 3.0% • GRR < 90% → 2.0%
GRR = (renewal revenue − churned revenue) ÷ baseline, vs a 90–95% target. Gate bands proposed — confirm at sign-off.
3 · Sales ↔ CS split on expansion
CS keeps 100% of any renewal or expansion under $50K. On expansion deals $50K and above, CS earns its 4% on 50% of the deal value; the other half is credited to Sales. No hard cliff — both sides are paid above the threshold, so nobody is incentivised to suppress an enterprise expansion.
4 · Land window — 12 months
The originating AE leads and retains commission credit for the first 12 months of a new account. After 12 months the account, its renewal, and its expansion commission move to CS. Internal policy, not a benchmarked figure — chosen to get CS owning and growing accounts sooner.
5 · Retention & expansion (variable design)
Base-heavy: 70–80% base / 20–30% variable, weighted ~75% retention / 25% expansion, with an NRR-style accelerator (base rate to 100% of goal, higher above). Plus a 0.3% of safeguarded enterprise ARR retention line, and a team expansion bonus if CS collectively hits $1.5M expansion — a bonus, not a gate.
6 · Hardware spiff — 4%, one number
Hardware carries a 4% spiff matching the software rate, so the plan runs on one number. Paid on net hardware invoiced (after any discount the CSM gives), kept separate from software commission. Because it's net-after-discount, every device given away comes out of the CSM's own reward. Guardrails: discount up to 10–15% at discretion; beyond that or free bundles need CXO / Sales sign-off; all give-aways logged.
Paid on revenue, not margin, for simplicity. Switch to hardware gross margin at the next review if thin margins bite.
Still to finalise at sign-off
• GRR gate bands (95 / 90 breakpoints and rates). • $50K split threshold: flat dollar vs % of initial ACV. • Timing to stand up the Renewal Manager function.
Basis: 22 verified claims from a research pass; rate structure, land window and hardware confirmed by the CEO. Single-owner, the $50K split and the NRR variable design are benchmark-backed; the 12-month window and hardware treatment are internal policy calls.