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(…) To be clear, our proposal for compensating you on the renewal of Brunel is based upon 2 key principles. The first is to encourage as high a commit as possible and the second to encourage as long a term as possible. To that end, please find below our proposal, which if you accept it would replace the Brunel specific portion of your current agreement.
The first thing to cover is the maximum achievable commission for obtaining a 1, 2 or 3 year commit. As discussed in Wednesday we would be prepared to offer the following maximum values:
As further discussed on Wednesday the precise percentage of this maximum value would be linked to the numerical value of the MRR commit, ranging from the EUR 150k in the current agreement upto a value of 190k. We understand that the higher the commit the harder it will be to get Brunel to agree just as you understand that one of the key values of the deal for SaaSplaza is this contractual commitment.
Therefore, our proposal would be to offer the following percentage of the total maximum 1, 2 or 3 year values based upon the calculation below:
EUR 150k MRR (or lower) – 30% of the total maximum commission
EUR 160k MRR – 40% of the total maximum commission
EUR 170k MRR – 60% of the total maximum commission
EUR 180k MRR – 80% of the total maximum commission
EUR 190k MRR (or higher) – 100% of the total maximum commission
So for the avoidance of doubt if Brunel sign for 3 years with an MRR committed spend of 180k your commission would be:
7000*0,80= EUR 56,000
Regardless of the commit level agreed to, SaaSplaza also offer you an on-going commission on the Brunel consumption above the contractual commit for the term of any renewal that is signed. This shall be equivalent to 1.5% of this additional uncontracted revenue (excluding license resale as discussed on Wednesday).
Therefore, if Brunel sign a 36 month agreement with a commit of EUR 150k but an actual monthly invoice of 170k (excluding license resale) the totally payable would be:
Fixed element = 120000 * 0.3 = EUR 36000
Consumption element = (20000 * 36) * 0,015 = EUR 10800
Total payable = EUR 46800
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Payment terms.
It is our proposal that for a 12-month renewal the total fixed element would be paid upon SaaSplaza acceptance of a signed renewal order. For 24-month renewals ½ would be paid upon order acceptance and ½ after the first anniversary of the contract. For 36-month renewals the payments would be split into three equal portions paid at signature, and at the first and second anniversaries. (…)
Additional consumption will be paid in arrears on an annual anniversary of the agreement based upon actual invoicing for either 1, 2 of 3 years depending upon renewal term agreed with the customer. (…)’