In a consumption model, some growth is organic. Instead of paying reps for this predictable growth, Google used analytical models to forecast a customer's spend trajectory. Account managers were then compensated heavily for exceeding this baseline, rewarding them only for the growth they directly influenced.
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.
For consumption-based models, simple size-based segmentation (SMB, Enterprise) is insufficient. Stripe and Vercel use a two-axis model: company size (x-axis) and growth potential (y-axis). A small company growing at 200% YoY is more valuable and warrants more sales investment than a large, stagnant one.
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.
Standard SaaS pricing fails for agentic products because high usage becomes a cost center. Avoid the trap of profiting from non-use. Instead, implement a hybrid model with a fixed base and usage-based overages, or, ideally, tie pricing directly to measurable outcomes generated by the AI.
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.
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.
Unlike perpetual or even subscription models, consumption-based compensation holds sales reps directly responsible for the customer's ongoing product usage. Reps are on the hook to ensure credits are "burned down," effectively merging the roles of sales and customer success and forcing a continuous selling motion.
Google's new business reps were compensated on the first three months of a new customer's spend, despite handing them off immediately after the initial sign-up. This incentivized them to find high-potential customers who would derive significant value from the product, rather than just securing a large upfront commitment.
When pitching a move away from legacy metrics like MQLs, don't just present flaws. Frame the new model as a superior, more predictable growth equation. Executives need a reliable forecasting model, so give them a new 'plug and play' formula to secure their buy-in.
Fal employs a product-led sales motion where enterprise deals originate from self-serve usage. The sales team is automatically alerted when a pay-as-you-go account's spending crosses a specific threshold ($300/day). This signal triggers outreach to convert the high-usage account into a larger, committed annual contract, creating an efficient and scalable GTM.