Compensate based on the annual contract value

You can also compensate based on the annual contract value (ACV).
However, one-year and two-year contracts are very exceptional.
The one-year contract is a very exceptional case.
Depending on your overall sales goals, a
Three years of credit may be too much for you.
It may be best to get one or two years of credit up front.
Managers never want their staff to meet their revenue goals by overselling managed services.
Therefore, negotiation is necessary. Overall, from a front-line sales force compensation perspective, three things are key
1) Earning credits.
2) Getting that booking credit to count toward quota achievement.
3) That booking credit should lead to earning rewards as well as the core product.
The process and determination of how to reward the front line sales force is a critical success factor for any managed services organization.
Therefore, if it is not done correctly, it will not succeed.
How you compensate your front line sales force is an important guideline for how well you support them.