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.

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Clay deliberately chose usage-based over seat-based pricing because their ideal customer is a technical builder (GTM Ops, Growth Marketer), not an individual salesperson. This model aligns value with the systems these builders create for the entire team, rather than charging for every end-user who benefits from the output.

Assigning expansion quotas to Customer Success (CS) is a critical mistake. CS should focus on implementation, adoption, and value realization, creating the conditions for growth. However, the act of selling the expansion is a core sales responsibility that requires a sales skillset and incentive structure.

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.

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.

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.

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.

Salespeople's biggest frustration with comp plans is being held accountable for outcomes they can't directly influence. This perceived unfairness is a primary driver of attrition, making it critical to align incentives strictly with a seller's direct responsibilities and control.

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.

In subscription or repeat-purchase businesses, the customer relationship begins at the point of sale, it doesn't end. The funnel metaphor is limiting because it ignores the crucial post-acquisition phases of adoption, expansion, and loyalty, where most value is created.

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.