Hello, I have a question on the following scenario and would really value any input as to what you have experienced or might do. This company sells a SaaS product where the annual fee is billed up front, each anniversary date. The standard term that is sold is 3 years which is documented in the comp plan. The sales rep gets paid on year 2 of ARR. There is no language in the comp plan that discusses 5 year deals and how to get paid. A deal comes in where the sales rep, with sales management's involvement, gets a 5 year deal locked in instead of a 3 year deal. The deal allows for the ARR to increase by 10,000 each year until its expiration in year 5. There is no out clause in the agreement. For this individual rep assume the rate is flat at 15%. On a standard deal, he gets paid 15% of Year 2 ARR. Since there are two additional years of contracted revenue. Would it be justified for the rep to ask for his rate 15% * 1.66 since there is going to be 2 additional years contracted? What is fair in this situation between the business and the rep?
