I heard there's a new sales organization with consumption based incentives from a friend there. How does the team feel about this? Why is leadership making this decision?

Question

Accepted Answer

Not a new sales org as such, but rather a specialisation of the existing roles. previously everyone did everything, new biz as well as existing customers, and now it's specialised. From everyone I've spoken to, they love this new focus, and customers also feel better taken care of. It's really good!

Answer

The sales org is basically split up into “Growth” and “New Logo” teams. Growth, focused on expansion in current customers - this team is compensated/measured on “consumption” alone. The new logo team is measured on closed net-new ACV - prospects only.

I personally think this is a great structure!

Answer

Great question! Leadership has been very focused on making consumption the major way to recognize revenue, going forward. Here's the thinking behind it: You can think of Snowflake as like your electric utility, but for cloud computing with a consumption model. So, you only pay for what you use. Whereas, reps were mainly compensated on bookings, even though the company didn't recognize a single dollar on bookings. And so, there was no direct correlation between sales comp and company revenues.

In short, you can think of Snowflake as consumption, consumption, consumption. They pride themselves on being one of major tech companies to transition to consumption, and they expect most every rep to care a lot about consumption.

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Anonymous Q&A

I heard there's a new sales organization with consumption based incentives from a friend there. How does the team feel about this? Why is leadership making this decision?