Everstage raises $13 million to expand its sales commission platform worldwide
Sales teams are used to receiving 50% or more of their compensation in the form of commissions that depend on the volume of business they generate. But how can they and their employers accurately track what they’ve earned day-to-day? Enter commission management platform Everstage, which today announced a $13 million Series A fundraising round, just eight months after its funding round.
“For years, sales teams have maintained parallel accounting systems to try to track what they earn,” says Everstage co-founder and CEO Siva Rajamani. “A lot of times they have no idea what they’ve actually earned until they get paid.”
This is not an exaggeration. Data from market researcher Gartner suggests that less than one in four sales agents are easily able to calculate their total variable compensation.
It’s not that companies are trying to deceive their staff, Rajamani says. But commission structures are getting more and more complicated; for example, sales targets are often multifaceted and change over time, there may be different commission payments for different types of customers or contracts, and sometimes commissions are split between teams and their managers.
This can make it very difficult for employers and employees to keep track of what is owed. The challenge for the former is made more difficult by the fact that relevant information may be contained in numerous systems throughout the enterprise. As for the sales teams, they may not have the complete picture of a particular transaction.
The result is that errors and inaccuracies often creep in. In the worst-case scenario, sales teams ended up quitting and suing their former employers over disputes over how much they were owed. More fundamentally, if sales teams don’t see the connection between their performance and their rewards, the whole point of linking the two is compromised. Commission structures are meant to incentivize better sales performance, but that only works if they’re transparent.
“We launched Everstage because we identified several pain points with existing legacy sales commission providers in the market,” says Rajamani, who had seen these issues first-hand in his previous role as head of the Global Revenue Operations team at Freshworks. “The market need was clear: customers wanted a product that was easy to set up and use, with a high capacity for continuous configuration.”
This last point is crucial, says Rajamani. While there are a number of commission tracking products aimed at this market, each company’s commission structure is different. Operations staff therefore need software that is easy to configure to reflect their own commission arrangements. “Just buying a package doesn’t work,” says Rajamani. “The software must be permanently configurable. »
Everstage also saw the opportunity to incorporate new features into its product. Operations managers can use it to model different commission structures, to understand what a change in compensation practices might cost. Sales teams can connect their pipeline data to the platform, so they can get an idea of what they might earn if they land those leads — and how increasing the contract size, for example, might result in a higher commission. “Everstage has really become a real way to retain and motivate reps towards performance goals,” adds Rajamani.
Customers are buying into the idea at a rapid pace. Although the company has been around for two years, it only started selling its product last summer. Since then, the number of customers and revenues have increased six and five times respectively. Everstage has attracted customers in North America, Europe, and Asia, and has been installed in businesses ranging from small businesses with 10 sales reps to larger organizations with sales teams of 1,000 or more people.
Investors are eager to buy into the story. Everstage raised $1.7 million in seed capital from 3one4 Capital last August and is participating in the Series A funding round announced today. This latest round is led by Elevation Capital.
“Companies are constantly looking to design creative incentive schemes to boost sales performance,” says Akarsh Shrivastava, Principal of Elevation Capital. “We were very impressed with how, unlike current legacy providers, Everstage has elegantly enabled companies to design and manage even the most complex plans.”
The money raised will allow Everstage to strengthen its sales teams in continents around the world, says Rajamani. He is also keen to invest in the company’s brand. The tech industry, home to many of the company’s early adopters, has a good grasp of what the platform does, but Everstage is keen to tell its story more broadly in other industries, including financial services. , pharmaceuticals and business services.