What are the suggested compensation approaches for a non-founder Sales Manager, who will potentially become the sales director and be leading the sales team as the business evolves?
The first MVP of my startup SaaS solution is getting ready to be released to “selected customers”(AKA early adopters) on the next 30 days. It is a B2B focused solution planned to be global/multicountry. Still on bootstraping phase. The company has capital to run fine for the next 3 years. Having somebody focused on the Sales strategy, pricing, materials, etc seems be important at this point.
The best candidate to be the sales manager is a senior sales executive who has lots of experience selling software solutions. At least until June 2016 he will not be able to leave his current job (due to contract$ reasons), both sides does not see a issue on that at this stage. Because of that I am considering to propose a 100% variable compensation until he joins full time, and once he joins full time, propose a 100% variable + some equity to be given proportionally during the next 2 to 3 years. By that time, he may end up investing some of his money as an investor if things work well.
Any suggestions, lessons learned, advice are welcome.