Strategic Commission Structures in Usage-Based Models

Todd Rakow, CFO of Gladly joins CJ for this deep dive into usage-based revenue models, strategic finance leadership, and the complexities of managing growth at scale. Todd shares tons of tactical insights, including building out the usage-based model, forecasting customer usage patterns, commissioning sales reps, and teaching your teams to distinguish between reoccurring and recurring revenue. If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a one-of-a-kind flexible financing program until April 15th, 2024.

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TIMESTAMPS

(00:00) Preview

(01:11) Intro

(02:31) Sponsor: Maxio | Netsuite

(06:09) Usage Based Benchmarks: Here to Stay?

(08:01) Understand ARR and its Components

(10:30) Recurring or Reoccurring?

(12:33) Computing Gladly's ARR 

(18:13) Seasonality and Alternative Methods to Better Track Revenue

(22:25) Sponsor: Thoropass

(23:45) Commission Structures And Incentivizing Sales Reps

(27:28) Avoiding Foot Faults in Usage-Based Models

(28:57) Frameworks for the Day-to-Day

(31:36) Strategic Leadership, Customer Support and Success 

(32:50) Being a CFO: A Series of Long Uncomfortable Conversations

(36:12) Removing the Stigma Around CFOs

(37:45) Todd's Insights on the Difference Between a Good and a Great CFO

(40:07) Forging a Good Relationship with Your CEO

(43:29) Long Ass Lightning Round: What Did Todd Mess Up in His Career?

(45:37) What Would Todd Tell His Younger Self?

(50:35) Todd’s Software Stack - Sponsored by Tropic

(52:41) Craziest Expense Request

(53:30) Wrap