Hey there, a few good answers here: https://clarity.fm/questions/1722/i-am-working-on-creating-a-sales-compensation-plan-for-a-recurring-revenue Or I'm happy to jump on a call to talk specifics https://clarity.fm/damianthompson

Like many things in life, you get what you pay for. Instead of looking at commission only, you can minimize your new hire risk by bringing on sales contractors that can eventually be brought on as employees if they work out. Often the issue is not the salary but the LACK of a repeatable, scalable sales process. Ensure you are ready for a sales team.

I think you are making it far too complicated. I would target 1st year payment only. I also wouldn't pay a percentage of sales, I would make it target based e.g. If you want the rep to sell $1M a year in ARR you give them a target of $1M and pay a percentage against achievement. This breaks the direct correlation to deal value and instead focuses them on achieving a set outcome.