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General Discussion

General Discussion

Do Salespeople Get Paid Only for Year 1 on Multi-Year Deals?

·Apr 13, 2026 08:13 PM·

Hi everyone would love your help on something, do you as sales people if you sign a multi year deal get paid for year 1 only?

7 comments

· Sorted by Oldest

Gracie M.
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As i understand it, it solely depends on the contract. Alot of contracts I have see are ACV but there are cases where the agreement is TCV. It just depends
Nicholas P.
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In my experience most of them get paid out on the full deal depending on the terms and payment
Matthew D.
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In most cases where there is a multi year payout that I’ve seen, there is at best a slight year one premium for signing a multi deal and then the company pays future years when cash is received provided the rep is still employed at that company. That is not particularly rep friendly nor does it incentivize multiple deals, but seems the norm in my limited experience in developer saas
Pat H.
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Multi year deals can go several ways: If it's a multi-year, paid upfront: pay the commission rate the rep is paid based on total collectible revenue. If it’s multi-year, paid annually: pay at the annual ARR, maybe at a higher rate than standard one year deals.
Leily M.
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It’s crazy how has Reps we are not incentivized to do close multi year because the payout isn't worth it
Pat H.
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That's not necessarily true everywhere
Matthew D.
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Also to the extent that the company wants to bet on itself as expanding its scope in the future and doesn’t have a short-term cash flow problem, multi year deals suboptimize the amount of revenue collected since they will likely not allow price hikes as harsh as a future one year deal when there’s a lot of vendor lock in that didn’t exist yet during the new business contract