In this short segment of the Revenue Builders Podcast, we revisit
the discussion with Jose Fernandez — former Head of Global Sales
Development at Google and now CEO of Easy Comp — breaks down how
compensation must evolve when companies shift from traditional
SaaS licensing to consumption-based models. Drawing from his
experience at Google Ads, one of the most successful consumption
engines in business history, Jose lays out the structural
advantages of consumption models and how GTM, onboarding,
forecasting, and comp plans must align to unlock growth.
John McMahon and John Kaplan then expand on how consumption
changes seller behavior, deal sizing, renewal dynamics, forecast
accuracy, and quota mechanics. This is a must-listen for revenue
leaders, sellers, and anyone navigating the industry-wide shift
toward usage-based pricing.
KEY TAKEAWAYS
[00:00:46] Companies transitioning to consumption models often
copy SaaS licensing structures instead of designing comp that
amplifies consumption-driven advantages.
[00:01:34] Three core advantages of consumption models: lower
barrier to entry, value-aligned spend increases, and product-led
expansion.
[00:03:07] Aligning GTM roles — new business, onboarding, and
account management — enables scale and fairness in comp.
[00:03:57] Forecasting in consumption models becomes an
analytical discipline, requiring predictive models rather than
rep intuition.
[00:05:00] High-quality customer fit at acquisition can result in
massive upside — one rep earned huge commission from a $15M
three-month advertiser.
[00:07:02] In consumption, churn can happen in a week — sellers
must ensure rapid value realization, not just contract
signing.
[00:08:00] Sellers often intentionally downsize initial deals to
ensure burn-down and protect compensation.
[00:08:59] PLG and sales-assisted models blend; comp must account
for small initial usage that grows rapidly.
[00:09:48] Companies balance advance payments to reps with
clawbacks to protect against churn.
[00:10:10] Smart sellers can land small, prove value, and convert
usage to multi-year, high-value commitments.
QUOTES
[00:01:10] “Companies take too much inspiration from the old
model instead of designing comp that amplifies the advantages of
consumption.”
[00:01:56] “Customer spend is directly proportional to the value
they get — and their understanding of that value.”
[00:02:19] “If you have an amazing product, some of that growth
is going to be product-led, regardless of the sales team.”
[00:03:57] “Forecasting in a consumption model is an analytical
exercise — not something you ask an account executive to
guess.”
[00:07:54] “In consumption, a customer can use it for a week,
turn it off like a light switch, and move on.”
[00:08:38] “PLG might start with $500 on a credit card and scale
into a major enterprise deal.”
[00:09:28] “Sometimes comp gives future credit for usage
trajectory — but companies will claw it back if churn
happens.”
[00:10:33] “There’s a lot of gold in this full episode — make
sure you check it out.”
Listen to the full conversation through the link
below.
https://revenue-builders.simplecast.com/episodes/driving-sales-behavior-with-effective-compensation-plans-with-jose-fernandez
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https://my.ascender.co/Ascender/
Hosted by five-time CRO John McMahon and Force Management
Co-Founder John Kaplan, the Revenue Builders podcast goes behind
the scenes with the sales leaders who have been there, done that,
and seen the results.
This show is brought to you by Force Management. We help
companies improve sales performance, executing their growth
strategy at the point of sale.
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