Bali structures its AE compensation with a 4:1 ratio of new ARR to on-target earnings. AEs with a quota of about $1M in new ARR can earn $250k ($75-100k base + $150k commission). This model ensures the sales function is a profitable growth engine for the bootstrapped company.

A one-size-fits-all sales role fails in consumption models. Success requires segmenting the team into specialized roles—new business acquisition, customer onboarding, and account management—each with distinct incentives aligned to their specific function, from initial sign-up to value realization and expansion.

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.

Google's Ads team structured its sales force into three specialized units. The acquisition team was paid on getting a customer to start, the onboarding team on setup success, and the account management team on growing spend beyond a predicted baseline. This aligns incentives with each stage of the customer's consumption journey.

Don't assume your best long-term customers are the easiest to win. They may have lower initial win rates, smaller deal sizes, and longer sales cycles. This creates a conflict for sales leaders who must hit quarterly numbers, forcing a trade-off between short-term wins and long-term value.

Sales leaders should instill a long-game mindset, focusing on creating lifetime customers and sustainable revenue streams rather than just hitting immediate targets. This involves planting seeds that will generate revenue for years, not just months.

Sales compensation is the most powerful lever for changing a sales team's behavior quickly. More than training or directives, incentives tell reps what they are supposed to do and why, directly shaping their daily actions and strategic focus.

Effective businesses base their acquisition spending on the total expected lifetime profit from a customer (the "back end"), not the profit from the initial sale. This allows for more aggressive and sustainable growth by reinvesting future earnings into current acquisition efforts.

In Snowflake's consumption model, a salesperson's job isn't done at signing. They have separate quotas for bookings (the commitment) and consumption (actual usage). This structure forces them to act as a long-term business partner, ensuring the customer successfully adopts and uses the platform.