To ensure sales reps close high-quality deals, link their compensation to a leading indicator of retention (LIR). Pay a portion of the commission upon signing and the remainder when the customer hits a predefined usage milestone, aligning incentives with long-term value.

By fixing the upfront cash collection, the business generates enough surplus to potentially double sales commissions from $50 to $100 per deal. This elevated pay structure attracts a completely different caliber of salesperson—"an order of magnitude better"—who can close more deals per day, dramatically accelerating growth without adding financial risk.

At ElevenLabs, top-performing account executives refuse salary increases, preferring equity instead. A higher base salary would increase their 20x quota, making it harder to reach the lucrative 1.5x and 2x commission accelerators for overperformance. This is a powerful, non-obvious incentive alignment.

Instead of competing for expensive sales talent in hubs like San Francisco, startups can find better value and alignment in cities like Phoenix or Austin. The talent there is often more willing to bet on themselves with high-commission, lower-base salary packages, which is ideal for a startup's growth stage and capital efficiency.

To ensure sales reps focus on long-term value (LTV), structure compensation to reward customer success. Pay half the commission on contract signing and the other half only when the customer hits a predefined activation metric, known as the Leading Indicator of Retention (LIR). This forces reps to sell to right-fit customers.

Instead of paying commissions solely on bookings, align sales incentives with long-term company health. By calculating Lifetime Value (LTV) by customer segment and paying AEs more for acquiring high-LTV accounts, you motivate them to pursue profitable, sticky customers.

Traditional salary-only structures for marketing create a disconnect from revenue. By introducing commission-based compensation tied to closed deals, marketers gain a direct stake in the sales process, fostering true alignment and shared financial incentives.

Instead of treating high commission payouts as a pure expense, view them as a marketing asset. Actively ensuring it's known that top reps make a lot of money serves as the best possible recruiting tool, attracting other A-players to your company.

Forgo traditional sales commissions at early-stage companies to incentivize what's best for the business, not just the individual. By offering a competitive salary and strong equity instead, salespeople are motivated to help with onboarding, cross-functional projects, and team building without seeing it as a financial loss.