Course 14 · Lesson 9 of 13
Commission principles for the first hires
Recommendations only, with no pay figures by design. Hiring order: founders close the first customers in each sector and write the playbook by doing it; customer success before more sales; the second developer before any commercial hire; the first salesperson when the sales-hire trigger is met (D25).
- Pay on cash received, not on a signature.
- Weight to commitment and retention: more for a twelve-month agreement than a rolling month (contract shape pending, D18). We reward commitment, never a price concession.
- Tie part of the payout to the account still paying and posting at 90 days (an option under D25). Any fixed window invites selling to its edge; one earlier plan that clawed back commission for churn inside four months saw churn spike in month five.
- Never reward period-end timing: no month-end or quarter-end accelerators or contests. Close dates are the buyer's critical event.
- No discount component, and no incentive to ask for one.
- Credit expansion only after a measured review.
- Partner-sourced deals: the seller is credited in full; the partner's commission is in the partner's agreement (D19 decides the partner side). Write the attribution rule down before the first hire.
- A deal won on a claim we cannot stand behind is not commissionable until it is put right.
- Set quotas from our own data.
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