SaasRise Mastermind Recap - October 13, 2026

💰 Topic: Base Pay vs. Variable Pay

Challenges: Designing 2027 compensation — whether 85/15 or another split is appropriate for core (non-sales) team members.

Advice:

• Rank-and-file: cap variable at ~5% (flat company bonus); management: 70/30 with half tied to company performance, half to MBOs.
• Customer success: uncapped bonuses tied to upsells and retention goals.
• Strategic roles (VP-level): comp tied to both net new ARR and EBITDA goals, uncapped above a floor.
• Use a salary benchmarking service (e.g., ERI) to set and defend pay ranges.

👥 Topic: Rising Salaries & Hiring

Challenges: Advertised controller at $130K–$150K; market demanded $175K–$200K+; similar pressure on other roles.

Advice:

• Consider outsourcing portions of the role, but weigh training costs vs. long-term value.
• Lock down file structures and documentation now to be due-diligence ready.

💵 Topic: EBITDA & Profit Sharing

Challenges: Heavy OpEx investment thinned EBITDA; PE buyers prioritize it; restructure underway to cut ~$100K/month.

Advice:

• Tie exec bonuses to EBITDA and net new ARR simultaneously to prevent gaming either metric.
• Publish a profit-sharing table (e.g., up to 10–13% of base) paid quarterly.
• Distribute 50% of profits to the management team and let them allocate internally.

⚖️ Topic: QSBS Conversion (LLC → C-Corp)

Challenges: Whether to convert to C-Corp to qualify for QSBS tax exclusion, weighing double taxation risk.

Advice:

• Conversion is low-cost and can yield significant capital gains savings (potentially $2–4M).
• Use IP royalty/licensing agreements to zero out corporate profit and avoid double taxation.
• NOL carryforwards can offset taxes in profitable years post-conversion.

🤝 Topic: Hiring an Evangelist/Advisor

Challenges: Structuring equity and compensation for an industry influencer who refers clients and speaks publicly.

Advice:

• Offer 1–2% equity with a 4-year vesting schedule and 50% change-of-control acceleration.
• Separate tracked referrals (paid via affiliate/invite links) from general brand awareness activity.
• Vesting protects downside if performance doesn't materialize.

Tools Recommended

Two specific tools were mentioned during the call:

• ERI (Economic Research Institute)
  • A salary benchmarking service for setting and defending compensation ranges.
  • Input location, experience, job title, SIC code, and revenue to get a salary range.
  • Costs approximately $2,000/year for access to their tables.
  • Credited with reducing turnover to near zero after 5 years of use.
• Claude (mentioned in passing)
  • Used informally to search compensation data by role as an alternative to a dedicated salary benchmarking service.

Best Advice

Tie compensation to the outcomes each role controls: cap variable pay at about 5% for rank-and-file, use 70/30 for management, and tie VP-level pay to both net new ARR and EBITDA so neither metric gets gamed. Use a salary benchmarking service such as ERI to set and defend pay ranges as market salaries rise. Lock down file structures and documentation now to be due-diligence ready. When bringing on an evangelist or advisor, offer 1–2% equity with a 4-year vesting schedule so vesting protects the downside if performance doesn't materialize.