Sales-CS Conflict? The 80/20 Solution
No one is talking about it.
However, the silent war between sales and customer success teams costs SaaS companies millions in lost revenue and churn.
What if a simple 80/20 compensation split could transform this conflict into a powerful collaboration and opportunity for growth?
The Current Dilemma
Here’s the most basic organizational structure companies have in place:
Account Executives (AEs) are laser-focused on hitting their new business quotas
CS team is measured on retention only.
However, this traditional model has a serious flaw.
It just creates an inherent conflict where:
AEs might close deals with bad-fit customers—even if they know they won't be accountable for long-term success
CS teams then get stuck with customers who were never a good fit
When customers decide to leave, AEs see it as a chance to earn another commission later
A vicious deadly cycle for the company’s business.
This misalignment between teams is one of the most common challenges facing SaaS organizations today.
The Solution: Shared Accountability Model
You need a common incentive that makes each other accountable for the outcome.
So here comes the 80/20 compensation split:
AEs: 80% new business / 20% retention quota
CS: 80% retention / 20% expansion quota
This approach does not diminish either team's core purpose—instead, it creates a powerful synergy where:
Sales teams become more selective in their prospecting. They now target better-fit customers
CS teams get more opportunities for growth beyond pure retention
Both teams share a vested interest in the customer's long-term success
A win-win!
Understanding industry-standard CSM compensation structures is key for implementing this model effectively.
Benefits to Your Organization
When both teams work on common incentives, everyone benefits from it:
Improved Customer Quality
AEs naturally filter out poor-fit prospects
Improved Collaboration
Teams work together rather than in silos
CSMs get involved earlier in deals to ensure customer fit
Sustainable Growth
Focus shifts from short-term gains to long-term success
Higher Customer Lifetime Value
Better-fit customers + aligned teams => greater expansion opportunities
Learn more about how successful Sales-CS partnerships drive sustainable growth.
The goal here is not to blur the lines between Sales and CS—but to create a unified approach to customer success.
That sounds great in theory.
But how do you implement this in practice?
"The CS Café is incredibly valuable! It gives a view on how and what to do next."
-Lara Barnes, SVP, Customer Success
I've created a comprehensive implementation toolkit available exclusively for Premium members. This proven playbook has helped 100+ SaaS companies align their teams for success.
🔒 Exclusive Premium Content
The Complete Sales & CS Compensation Alignment Playbook (Value: $299)
Inside this proven playbook, you'll get:
Implementation Tools
4 ready-to-use compensation templates (CS-Only, AE-Only, CS with Renewal, CS with Full Revenue)
Performance tracking dashboard with core KPIs
Commission calculation frameworks with accelerator models
Strategic Resources
6-month implementation roadmap with weekly milestones
Change management playbook used by enterprise companies
ROI calculator with 3-year projection models
Expert Insights
Real compensation data from companies $1M-$100M ARR
Top 15 implementation pitfalls and solutions
Leadership buy-in presentation template
*Built using real compensation data from the field:
Complete frameworks for roles from SDR ($40K-50K base) to Sales Manager positions
Industry-standard commission rates across different deal types
Tested compensation structures across company stages ($1M-$100M+ ARR)
Performance accelerators proven to drive results (up to 2x multiplier for top performers)
Plus: ROI calculator that shows exact cost savings - like turning a $1.5M annual churn into $300K savings through 20% retention improvement
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