Impact of SAP SolEx on Comp Plan There is talk that the company I work for is going to become a SAP SolEx partner. This will give SAP the ability to resell our solution on their paper. Once this change happens, our comp plans will also change and/or we’ll be sharing revenue with SAP which will reduce the total deal size. I’m curious if anyone has been through this change before at a previous company and feedback on how it impacted you.
I don't mean this in a combative type of way, but what makes you think it will reduce the deal size? We also had it where reps on both sides would make 100% commission, but anytime we closed a deal with SAP the deal sizes were much larger. Typically they are in rooms you most likely aren't, or at least we weren't. For example, we might have been negotiating a $50k deal with a VP --> we pull in SAP and the rep just got done golfing with the CIO and he makes it a part of his pitch and now it's all of a sudden a $250k deal. There could be massive upside to a partnership with them, IF your team does a good job setting it up.
At the beginning you will be compensated only on a part of the deal (a percentage defined by your company e.g. 20-40%) . Afterwards depending on the pipe status you might get compensated 100% (or less) and the SAP Account Executive also 100% or less. Please set right expectations: SAP will not sell for you . You still need to generate the lead and make the deal happen(MEDIC). SAP will help grow deals with management influence.
Hard to say since it will depend on the negotiations your partner ecosystem team had with SAP. We had it where if our product was sold on their paper we got 50% in the past. It created weird tension with the clients and prospects as they could see both reps were fighting on getting the deal done on their respective papers. Now we have it so both reps get 100% either way which obviously increases the likelihood of collaboration but it’s brand new so we’ll see.