Definition
ACV commission calculates partner reward from the annualized value of a customer contract. It is often used when sales-led SaaS deals close on annual terms or custom contracts.
B2B SaaS context
ACV-based rewards can fit partner-sourced enterprise opportunities, but they require controls for discounts, implementation fees, payment terms and churn risk. The headline percentage alone is not enough.
Operator note
Define included revenue components, when the ACV is considered closed, and whether commission is paid upfront, over time or after cash collection.