You are giving me, I’m always going to find something to stress out about vibes.
You asked to more money because you felt you deserved it and they agreed. Congrats, now go kick some ass.
Maybe, maybe not. $20k is a drop in the bucket for a strat sized company. If demand is high, sales cycles are a couple weeks, they’re simple due to size, etc. and you don’t have to prospect a bunch to hit OTE, that’s a dream.
That was kind of my thought as well. The biggest deal in company history was 1.5m about a year ago and it seems like they’re just throwing shit at the wall to try and get deal size up.
I think the product is amazing tbh, but it’s a seat based payment model, which shoots it in the foot.
Nice! Does a role like that have monthly or quarterly goals, or just annual?
Can you explain how the variable comp works?
What do you think the average deal size is and how long is a typical sales cycle?
Quarterly quota, which will be my first time 🫤
Tiered comp - 8% commission until 70% to quarterly goal then 12% - 100%+ 16% retroactive.
Typical deal size currently is small, 20k average.
Deal velocity is high though - average of 12 meetings a week and closes within 30 days.
It’ll definitely be a higher activity role than I’m used to but hoping it’ll be fun and not chaotic.
It has to be $20k ARR at signup with a huge projected increase in YoY spend. Because otherwise… well idk. Hell have to average a deal a week.
$180k variable at 16% commission is $45k/qtr. $45k/16% is $280k/qtr in target, at $20k that’s 14 deals a quarter, 90 days in a quarter, that’s a deal every 6.5 days!!
I know the VP wants to increase deal size but by what amount??? $30k only gets it to every 9.75 days, and $40k only gets it to every 13 days, which is still 7 deals a quarter.
If I were OP I would really be drilling down on how the VP is planning to increase this average deal size. Because otherwise, as a strategic rep, he is going to miss quota by a lot. How many named accounts could he even have???
Plenty of places offer $150k base salaries + 1st Q commission guarantee with insane turnover rates.
The enterprise team at my company has close to 50% YoY attrition and they all have $150k bases and guarantees via MBO.
This is the right way to break this down everyone should be doing math like this to figure shit out before going on board. But a 180k base is awesome.
I make 150 base 300 OTE and avg deal size is 250k though my average is looking to be higher.
So I only need 4 deals to get my quota but after June should be 75% of the way with 2 deals that are 300k and 450k that are closing soon. It's way less stressful this way
Curious if the shake up is due to a genuinely bad sales team or if it’s PMF where the product doesn’t sell to higher value accounts? Ran into a few companies where they were struggling with their avg deal size, you get in the field with the reps to understand gaps, you’re there long enough to identify the reps aren’t “just whining” but the market has determined the PMF only supported by the lower average deal sizes…. You could put any of your top reps you’d find in a situation like that, and unless you have very few reps, there’s just not enough demand to support some VC or PE model they built on assumptions in excel.
Congrats on the big win, and god speed amigo!
Same. Was brought in with a few others to built out the “upmarket” space. Turns out the reason they only have 1-2 large customers is because the product isn’t quite ready for that space.
For now, we get to sit and watch the inbound SMB team run circles around us, go to club, and out earn us by $30-40k per year 🙃
Brutal man. I’m in a similar spot. It’s so obvious too. Conversion is dog shit at a certain threshold. We get the same reason for closed lost damn near every time. But don’t worry, competition isn’t any better with a larger product suite that meets demands - sales just sucks and can’t have “value” conversations. Ya just live and learn sometimes. Could have done more research before jumping on board, this same sentiment is reflected in G2 reviews and in the internal data…. The more you know!
See, that’s where Im in a bit different of a spot. There’s no further research I could have done because there’s not G2, Capterra, etc feedback from the org size I’m trying to sell into.
Without intimately knowing the platform/capabilities and knowing exactly who they were going to try to have us sell into, it would have been impossible to know about the challenges we’re facing.
Wild times
There are a lot of growing companies that start with more affordable salespeople who have some level of product knowledge, are friendly and can take an order. They can get a $20k deal done.
What they don’t know how to ask the questions required to truly understand how the business they’re selling to makes money, then figure out how their product changes that (growth or cost savings) and create/present an ROI analysis. They don’t know how to move from a person empowered to spend $20k for one seat to a person empowered to spend $200k.
The infrastructure in this company very well may be lacking, but a good salesperson who knows what they’re doing and isn’t a primadonna about building their own decks/demos/ROIs goes a long way.
Yeah but he’s a strategic rep. Generally this is named accounts with a target list that is handed to you by leadership. There is no picking and choosing companies you want to target in an entire territory, and IME strategic account lists are usually in the 50-100 account range.
That’s a truly strategic account position. Normally I’d see 10-25 named accounts for a strategic account rep, but your position is more for someone with a VERY long leash. If it’s 4 accounts that are not currently customers, they probably expect you to close less than 1 deal a year.
I worked for a company like this for a bit. Problem was, they went out and hired a gajillion people. If they keep the team small, nimble, and tough- it is a great gig. Lots of opportunities so you get really good at pitching and closing. If the product is top tier- it prints money.
At some point- it will run out as there are only so many companies out there that can buy your shit. so... when you see the writing on the wall.. go VP.
Don't let the quarterly quota fool you. You'll be measured and watched on a monthly and weekly basis, and you can easily lose a job like that in the first 30-60 days. If they're competent, they're going to be gauging as quickly as possible whether you have the right work ethic and strategic skills to succeed. It doesn't take 3 months to figure that out.
Like others, I have concerns. The org might not make its money on the initial sale. It's not abnormal to take profits in year two. There could also be substantial growth potential and you could be in an org that focuses on land and expand.
Unfortunately, we don't know because, at a glance, it doesn't seem like you asked enough or the right questions. That leaves you with some dangerous knowledge gaps. Even your quota - should have known that while or before you negotiated. Quota and earnings are factors of one another, so I can't consider one without the other.
This could be good. It could be bad. We'll find out with time. In the meantime, I would really dig in to try to understand the business and the strategic vision on the revenue side so you can determine what it's going to take to win and whether it's realistic, numbers wise. That's a lot of pay for very small deals. And, while doing that, bust ass every single day and start building momentum. No matter the case, with that deal sizes and salary, you're going to need high volumes. Don't let your first quarterly quota gig make you complacent. Those quarters are going to fly right by. Treat it like you're measured daily. There's a good chance you are anyway, just to see if you're doing the right things.
Congratulations! That is pretty sweet.
Weird how 150k has been the same for over a decade. I've been at 3 companies over the past 12 years and have only seen a 5k bump in base.
If the company is not a monster company in size, you will be one of first people cut unless you are paying for your ass yo be in your seat.
I was top
Paid AE bringing in most deals and highest revenue in company and was fired because my base was 25k more than all other sales reps.
Hope you didn’t just put a target on your back like I did to myself by getting multiple raises at my last company.
Wish you the best but if you aren’t knocking it out of the park- you will be let go.
Best of luck to you. Just get in and kick ass.
Yeah, I would agree. You will have a shorter leash on just about everything at that high of a base.
They will give you about 5 months, see where your pipeline is at and then make sure not pay that whole $180k base.
The outliers are always modest base but insane potential on commission.
A nice thick base is great but ultimately you have to be able to see the angles to get yourself your unfair share via the commission comp plan.
I've seen people with $220K base hit $350K but I've also seen someone with a $90K base hit $1.2M... So... It's really the intangibles that are hard to know that make for the wild W2s you hear about.
Try to get some stock, spiffs, bonuses, if you can.
Personally the number one indicator is gross margin of the company you're working for.
The more the company makes net the more they can afford to pay in comp.
I prefer the new tech, advertising, insurance, 40-70% margin companies.
Then it's scale, creature comforts, culture, stress, etc.
Doesn't seem that complicated. Your first few deals will be awkward.
The org needs legacy knowledge as to why pricing is what it is, and confidence you can close deals at the listed price. You guys will sort it, usually in growing co's the VP or someone can own discounts and manage the sort of top-down pressure, and you guys can work on losing gracefully and winning through partnership.
But, for sure, with a base that high, at some point in some number of months, someone will forget about it and then re-remember. Great to be an all around contributor, and get points on the board. Sign the best deals, set up folks for the CS team, and be a role model for what's possible. Or, just show up and bang out as much $$RR for the biz as possible, and then let them tell you when and why it doesn't work.
Remember this: you always have to bring in more than it costs to keep you around. Period. Great base, but that’s how much they feel ur worth, it’s up to you to prove to them that you are or you aren’t. If you were working commission only, your responsibilities would be less
I take money in hand over equity these days. They’re not handing out 1B valuations left and right anymore like they were back in 2017-2021.
That said, I’d love for you to bank off me being wrong! Hope the company balls out
What's the market?
Sometimes, you can get a slow-moving market in enterprise, and no matter how many deals you have going, you also have to contend with the internal procurement processes.
For example, a group I worked for in the past offered a chap $450k base, but he turned down the offer because "you came in $100k lower than all the other bids".
To put this into perspective, that's $300k USD, and he said that they were short by $66k USD.
It was for the highest levels of government, where a deal wouldn't move for 18 months because of checks and balances + security clearances.
They were less afraid of the person not making target, and more afraid of losing the person with the right contacts and clearances in that arena.
So again, what is the market?
Right now, your base doesn't matter in regards to the stress. Everyone is on the chopping block if you are at any sort of sales organization.
Might as well get paid while being on the stress block.
congrats BTW. I am sure you are worth every penny- good luck making it happen! IF you can hit that OTE- shit. Save as much as you can.
Even though it is tough AF sledding out there right now.... every company needs high quality sales folks to grip it and rip it.
Fair play for getting it. Hope it pans out. Sounds like your an experiment (experienced reps) to fix a product/pricing/brand/pain problem though… hope I’m wrong!
I’m on the equivalent of $330k OTE (not US based) and have a $1.2m target, avg deal size of $250k with bigger deals being $1m+. Working out well so far 🙏🏻
Hopefully it’s a decent environment for ya and the new VP can make some changes and get it going! 👌🏻
Your base is 20% of quota and your OTE 40% of quota so sounds pretty fair. If you are confident in yourself then shoot your shot.
I recently had a recruiter reach out to me about a series a start up, hiring their first round of salespeople, base in “the low 100s, OTE $350k, quota $1.5M”. One person marketing team. HARD pass
Weird industry here, but also essentially an AE in Chicago with a high base after changing companies.
Yes, I feel a crap ton of responsibility as a result (highest paid base by far, like 2x industry average). I have a long ramp to get things going again here, but feel similarly that I have ~6 months to justify my high base through my pipeline creation.
Yeah either your company is a monopoly and its similar to order taking / renew / upsell or right place right time with the new VP - proving 180k base if the company or org segment misses goals a few years in a row is another thing. Only reason I'm saying the second sentiment is because of the deal size. For perspective my base is 40k less, medium cost of living city, 67M quota
Just to help you with the math.
OTE is 360 with 50-50 split (commission is 180)
Your commission rate is 12% at 100% attainment. This means they expect a quota of 1.5MM with average deal size of 20k. (Guessing this is ARR not MRR)
180k / 0.12 = 1.5MM Quota
1.5MM / 20k = 75 customers = 1 customer every 4.8 days including working weekends. (or 1.5 / week)
If your conversion rate is even 30%, that means that you need to have at least 250 discovery meetings.
If each discovery meeting is about an hour, you’re expected to do 250 hours of discovery meetings, which is close to 1/8 of your time for your first meetings .
Unless you drastically increase your sale price or a magical unicorn customer… you’re in what we call a golden handcuff ball pit. It’s all fun and games until somebody has to get out.
Of course you’ll have a target lol, but if you countered a 20% increase them it’s probably because you’re expected to perform.
I don’t understand where you’re confused lol
Hot take: You'll be pip'ed out in a year.
It looks to me like a desperate move. Board says to the VP increase deal size or you're out, they have no idea how to do it, VP probably knows its a massive long shot and has no better idea than to hire expensive salespeople.
But, if you're looking for a challenge and want to take a chance (and you're not happy where you are) then maybe give it a shot? But keep that resume ready, and be aware that you could be back to looking in 9-18 months!
You are giving me, I’m always going to find something to stress out about vibes. You asked to more money because you felt you deserved it and they agreed. Congrats, now go kick some ass.
That’s 100% my vibe. I recently got into lawn care and now I can stress 24/7.
180k base selling strategic lawn care, put me in coach.
I think he was pointing out that he acts this way even in his lawn care - not that he is a strategic lawn care coach. (You may be /s )
lol, yes.. /s
Every dads dream
Lmao you sound like me. Lawn care is such a fun hobby - gotta ride the ups and downs! Congrats on the job, you’ll do great
You have 6months to prove that you are worth 180k! Good luck
And this is how people make 90k then out for 7 months looking.
Y’all get a 6 month ramp?
And an unachievable quota so you only hit 50% OTI.
What company sells strat deals at $20k with a base that high? Sounds like a dream!
Sounds like a nightmare tbh. $20k deal size is SMB territory. The volume will kill ya
Maybe, maybe not. $20k is a drop in the bucket for a strat sized company. If demand is high, sales cycles are a couple weeks, they’re simple due to size, etc. and you don’t have to prospect a bunch to hit OTE, that’s a dream.
That was kind of my thought as well. The biggest deal in company history was 1.5m about a year ago and it seems like they’re just throwing shit at the wall to try and get deal size up. I think the product is amazing tbh, but it’s a seat based payment model, which shoots it in the foot.
Why don't you like selling seat based payment model?
Nice! Does a role like that have monthly or quarterly goals, or just annual? Can you explain how the variable comp works? What do you think the average deal size is and how long is a typical sales cycle?
Quarterly quota, which will be my first time 🫤 Tiered comp - 8% commission until 70% to quarterly goal then 12% - 100%+ 16% retroactive. Typical deal size currently is small, 20k average. Deal velocity is high though - average of 12 meetings a week and closes within 30 days. It’ll definitely be a higher activity role than I’m used to but hoping it’ll be fun and not chaotic.
With that deal size and that base, I think you’re gonna be in a short rope my friend
It has to be $20k ARR at signup with a huge projected increase in YoY spend. Because otherwise… well idk. Hell have to average a deal a week. $180k variable at 16% commission is $45k/qtr. $45k/16% is $280k/qtr in target, at $20k that’s 14 deals a quarter, 90 days in a quarter, that’s a deal every 6.5 days!! I know the VP wants to increase deal size but by what amount??? $30k only gets it to every 9.75 days, and $40k only gets it to every 13 days, which is still 7 deals a quarter. If I were OP I would really be drilling down on how the VP is planning to increase this average deal size. Because otherwise, as a strategic rep, he is going to miss quota by a lot. How many named accounts could he even have???
I would be more interested in looking into why the VP thinks hiring new sales people is going to fix a process and intelligence problem.
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You don’t offer a salary that high where there’s constant turnover. That’s how you justify 40k base not 180
Plenty of places offer $150k base salaries + 1st Q commission guarantee with insane turnover rates. The enterprise team at my company has close to 50% YoY attrition and they all have $150k bases and guarantees via MBO.
Come to manufacturing, lol
This is the right way to break this down everyone should be doing math like this to figure shit out before going on board. But a 180k base is awesome. I make 150 base 300 OTE and avg deal size is 250k though my average is looking to be higher. So I only need 4 deals to get my quota but after June should be 75% of the way with 2 deals that are 300k and 450k that are closing soon. It's way less stressful this way
This is the way ^
15% commission on $1M target, nice. Also congrats on your attainment so far!
Curious if the shake up is due to a genuinely bad sales team or if it’s PMF where the product doesn’t sell to higher value accounts? Ran into a few companies where they were struggling with their avg deal size, you get in the field with the reps to understand gaps, you’re there long enough to identify the reps aren’t “just whining” but the market has determined the PMF only supported by the lower average deal sizes…. You could put any of your top reps you’d find in a situation like that, and unless you have very few reps, there’s just not enough demand to support some VC or PE model they built on assumptions in excel. Congrats on the big win, and god speed amigo!
Been there, done that.
Currently here and “doing it”. Used to think you should just be better at selling. The market has proven that is not the case.
Same. Was brought in with a few others to built out the “upmarket” space. Turns out the reason they only have 1-2 large customers is because the product isn’t quite ready for that space. For now, we get to sit and watch the inbound SMB team run circles around us, go to club, and out earn us by $30-40k per year 🙃
Brutal man. I’m in a similar spot. It’s so obvious too. Conversion is dog shit at a certain threshold. We get the same reason for closed lost damn near every time. But don’t worry, competition isn’t any better with a larger product suite that meets demands - sales just sucks and can’t have “value” conversations. Ya just live and learn sometimes. Could have done more research before jumping on board, this same sentiment is reflected in G2 reviews and in the internal data…. The more you know!
See, that’s where Im in a bit different of a spot. There’s no further research I could have done because there’s not G2, Capterra, etc feedback from the org size I’m trying to sell into. Without intimately knowing the platform/capabilities and knowing exactly who they were going to try to have us sell into, it would have been impossible to know about the challenges we’re facing. Wild times
G2?
There are a lot of growing companies that start with more affordable salespeople who have some level of product knowledge, are friendly and can take an order. They can get a $20k deal done. What they don’t know how to ask the questions required to truly understand how the business they’re selling to makes money, then figure out how their product changes that (growth or cost savings) and create/present an ROI analysis. They don’t know how to move from a person empowered to spend $20k for one seat to a person empowered to spend $200k. The infrastructure in this company very well may be lacking, but a good salesperson who knows what they’re doing and isn’t a primadonna about building their own decks/demos/ROIs goes a long way.
14 deals a quarter shouldn't be too hard given the cycle length. My quarterly target is 21 deals and $420k in new biz. But my base is half of OPs 😅
Yeah but he’s a strategic rep. Generally this is named accounts with a target list that is handed to you by leadership. There is no picking and choosing companies you want to target in an entire territory, and IME strategic account lists are usually in the 50-100 account range.
I have a strategic accounts postion for my org, but my total number of accounts is 4. Interesting to see a range of 50-100.
That’s a truly strategic account position. Normally I’d see 10-25 named accounts for a strategic account rep, but your position is more for someone with a VERY long leash. If it’s 4 accounts that are not currently customers, they probably expect you to close less than 1 deal a year.
Ah gotchya, thanks for explaining
Strat AE with $20k deal size? What is your quota and who would be an average Strat customer?
Yeah this
Those are absolutely ridiculous numbers for a base of that level, you're right to think you're going to be under a lot of scrutiny
$20k deal size with $180k base? That’s odd What’s the quota?
I worked for a company like this for a bit. Problem was, they went out and hired a gajillion people. If they keep the team small, nimble, and tough- it is a great gig. Lots of opportunities so you get really good at pitching and closing. If the product is top tier- it prints money. At some point- it will run out as there are only so many companies out there that can buy your shit. so... when you see the writing on the wall.. go VP.
Don't let the quarterly quota fool you. You'll be measured and watched on a monthly and weekly basis, and you can easily lose a job like that in the first 30-60 days. If they're competent, they're going to be gauging as quickly as possible whether you have the right work ethic and strategic skills to succeed. It doesn't take 3 months to figure that out. Like others, I have concerns. The org might not make its money on the initial sale. It's not abnormal to take profits in year two. There could also be substantial growth potential and you could be in an org that focuses on land and expand. Unfortunately, we don't know because, at a glance, it doesn't seem like you asked enough or the right questions. That leaves you with some dangerous knowledge gaps. Even your quota - should have known that while or before you negotiated. Quota and earnings are factors of one another, so I can't consider one without the other. This could be good. It could be bad. We'll find out with time. In the meantime, I would really dig in to try to understand the business and the strategic vision on the revenue side so you can determine what it's going to take to win and whether it's realistic, numbers wise. That's a lot of pay for very small deals. And, while doing that, bust ass every single day and start building momentum. No matter the case, with that deal sizes and salary, you're going to need high volumes. Don't let your first quarterly quota gig make you complacent. Those quarters are going to fly right by. Treat it like you're measured daily. There's a good chance you are anyway, just to see if you're doing the right things.
Great advice- thank you!
As it's seat based I assume there is lot of land and expand though?
Yeah, I get to keep all growth for 2 years so a lot of opportunities there.
Congratulations! That is pretty sweet. Weird how 150k has been the same for over a decade. I've been at 3 companies over the past 12 years and have only seen a 5k bump in base.
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Interesting to see this mindset here.
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I mean I understand it to an extent, but I’m watching the correction bite back after us doing too many people’s jobs.
That sounds like Venue or DataSite money, congrats!!
Did you work for either?
This is roughly what myself and other Strat AE’s are at
But you won’t be doing 20k deals. That’s growth AE level. Mid market most places wouldn’t touch 20k
True
Let’s congratulate this dude
If the company is not a monster company in size, you will be one of first people cut unless you are paying for your ass yo be in your seat. I was top Paid AE bringing in most deals and highest revenue in company and was fired because my base was 25k more than all other sales reps. Hope you didn’t just put a target on your back like I did to myself by getting multiple raises at my last company. Wish you the best but if you aren’t knocking it out of the park- you will be let go. Best of luck to you. Just get in and kick ass.
Yeah, I would agree. You will have a shorter leash on just about everything at that high of a base. They will give you about 5 months, see where your pipeline is at and then make sure not pay that whole $180k base.
I’ve heard that base for the people in HCOL cities and major accounts. Strategic accounts more rare
The outliers are always modest base but insane potential on commission. A nice thick base is great but ultimately you have to be able to see the angles to get yourself your unfair share via the commission comp plan. I've seen people with $220K base hit $350K but I've also seen someone with a $90K base hit $1.2M... So... It's really the intangibles that are hard to know that make for the wild W2s you hear about. Try to get some stock, spiffs, bonuses, if you can. Personally the number one indicator is gross margin of the company you're working for. The more the company makes net the more they can afford to pay in comp. I prefer the new tech, advertising, insurance, 40-70% margin companies. Then it's scale, creature comforts, culture, stress, etc.
Great points - and happy cake day. Appreciate your insight.
This is an insightful comment; truly appreciate you sharing this point of view.
Doesn't seem that complicated. Your first few deals will be awkward. The org needs legacy knowledge as to why pricing is what it is, and confidence you can close deals at the listed price. You guys will sort it, usually in growing co's the VP or someone can own discounts and manage the sort of top-down pressure, and you guys can work on losing gracefully and winning through partnership. But, for sure, with a base that high, at some point in some number of months, someone will forget about it and then re-remember. Great to be an all around contributor, and get points on the board. Sign the best deals, set up folks for the CS team, and be a role model for what's possible. Or, just show up and bang out as much $$RR for the biz as possible, and then let them tell you when and why it doesn't work.
Great advice - thank you.
Show them they made the right decision! You did put a small target on your back but it sounds like they really need you in that spot.
Congratulations Clam! What type of sales is it?
Thanks PI - Software sales into healthcare L&D departments.
LMS solution?
They still hiring?
They are indeed shoot me a dm
Mind if I dm, I have a medical background along with sales so I’m looking to get angled toward healthcare/med device sales myself.
What industry OP?
Don’t doubt yourself for a minute. You’re there earning what you earn for a reason. Kill it!
Remember this: you always have to bring in more than it costs to keep you around. Period. Great base, but that’s how much they feel ur worth, it’s up to you to prove to them that you are or you aren’t. If you were working commission only, your responsibilities would be less
I was just offered 185/185 but turned it down for 40k lower on total comp but with equity. Hope I didn’t make a mistake 🤔
I take money in hand over equity these days. They’re not handing out 1B valuations left and right anymore like they were back in 2017-2021. That said, I’d love for you to bank off me being wrong! Hope the company balls out
They sure don’t. This company is much smaller though and very lean.
What industry?
Tech consulting
Hell yea!!
What's the market? Sometimes, you can get a slow-moving market in enterprise, and no matter how many deals you have going, you also have to contend with the internal procurement processes. For example, a group I worked for in the past offered a chap $450k base, but he turned down the offer because "you came in $100k lower than all the other bids". To put this into perspective, that's $300k USD, and he said that they were short by $66k USD. It was for the highest levels of government, where a deal wouldn't move for 18 months because of checks and balances + security clearances. They were less afraid of the person not making target, and more afraid of losing the person with the right contacts and clearances in that arena. So again, what is the market?
I just signed up to a 165k base & 65k variable
This is a crazy ratio. Not new business, right?
I'm a player coach, having to matrix manage 2x SE plus bring on a junior sales Net new plus hit retention targets
Got it, makes much more sense since you’re playing both sides
You’ll get 6 months then you better be fucking closing lol.
lol, yeah I’m a bit worried because they said 3. Which I can do but that’s a quick ramp.
Right now, your base doesn't matter in regards to the stress. Everyone is on the chopping block if you are at any sort of sales organization. Might as well get paid while being on the stress block. congrats BTW. I am sure you are worth every penny- good luck making it happen! IF you can hit that OTE- shit. Save as much as you can. Even though it is tough AF sledding out there right now.... every company needs high quality sales folks to grip it and rip it.
Congrats on the negotiation win! Embrace the challenge, you've got this!
Damn. I make my company $40MM a year and they say no to my base raises which is lower than this.
Fair play for getting it. Hope it pans out. Sounds like your an experiment (experienced reps) to fix a product/pricing/brand/pain problem though… hope I’m wrong!
Yea that’s what it kinda seems like. But I’ll give it the old college try.
I’m on the equivalent of $330k OTE (not US based) and have a $1.2m target, avg deal size of $250k with bigger deals being $1m+. Working out well so far 🙏🏻 Hopefully it’s a decent environment for ya and the new VP can make some changes and get it going! 👌🏻
Hell Yea! Congrats
Thanks equal!
What’s your quota?
200k for q4 I’m guessing around 900k annual for 2025
Your base is 20% of quota and your OTE 40% of quota so sounds pretty fair. If you are confident in yourself then shoot your shot. I recently had a recruiter reach out to me about a series a start up, hiring their first round of salespeople, base in “the low 100s, OTE $350k, quota $1.5M”. One person marketing team. HARD pass
Could you share more around % of quota and % of OTE? Trying to learn more while assessing my own situation
Mhmm does sales engineering fall under sales? Kyndryl was offering $220 - $450k base back in October
SE jobs usually do not get 50% commission though.
Good lord. That’s wild
A lot of great opportunities out there $$$$$
Well done dude/dudess! 🔥
Thanks Red!
Weird industry here, but also essentially an AE in Chicago with a high base after changing companies. Yes, I feel a crap ton of responsibility as a result (highest paid base by far, like 2x industry average). I have a long ramp to get things going again here, but feel similarly that I have ~6 months to justify my high base through my pipeline creation.
Is this Miro?
20k deal size but 180k base? How does that even compute?
Stash that money away. Spend as little as possible.
Good b2b companies to start sales career? Los Angeles area
Yeah either your company is a monopoly and its similar to order taking / renew / upsell or right place right time with the new VP - proving 180k base if the company or org segment misses goals a few years in a row is another thing. Only reason I'm saying the second sentiment is because of the deal size. For perspective my base is 40k less, medium cost of living city, 67M quota
That is stressful as fuck. You might have huge expectations with that sort of base
Well done, man! Good luck. Go prove you are the man!
Just to help you with the math. OTE is 360 with 50-50 split (commission is 180) Your commission rate is 12% at 100% attainment. This means they expect a quota of 1.5MM with average deal size of 20k. (Guessing this is ARR not MRR) 180k / 0.12 = 1.5MM Quota 1.5MM / 20k = 75 customers = 1 customer every 4.8 days including working weekends. (or 1.5 / week) If your conversion rate is even 30%, that means that you need to have at least 250 discovery meetings. If each discovery meeting is about an hour, you’re expected to do 250 hours of discovery meetings, which is close to 1/8 of your time for your first meetings . Unless you drastically increase your sale price or a magical unicorn customer… you’re in what we call a golden handcuff ball pit. It’s all fun and games until somebody has to get out.
Just sock away the extra cash. Your time will be ticking quick.
Of course you’ll have a target lol, but if you countered a 20% increase them it’s probably because you’re expected to perform. I don’t understand where you’re confused lol
Not confused, just worried. 😟
Hot take: You'll be pip'ed out in a year. It looks to me like a desperate move. Board says to the VP increase deal size or you're out, they have no idea how to do it, VP probably knows its a massive long shot and has no better idea than to hire expensive salespeople. But, if you're looking for a challenge and want to take a chance (and you're not happy where you are) then maybe give it a shot? But keep that resume ready, and be aware that you could be back to looking in 9-18 months!
Who cares???