SalesaSaaSsin

Sr. BDR

50/50 or 60/40 OTE split in a team-based comp plan with accelerators?

Currently interviewing with a company for an AE role. Curious to get everyone's thoughts on this. Has anyone heard of or dealt with a team-based comp plan before?

💰 Compensation

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jefe

Arsonist

🍁

Team-based comp plan?! So you get dragged down by the inevitable deadweight?

Way too much will be out of your control here.

I'd pass

SalesaSaaSsin

Fire Starter

Sr. BDR

Thanks @jefe! They're offering $200K OTE with 60/40 split, but its team-based compensation with aggressive accelerators. Small start up, I figured it would be my only way to break into an AE role.

jefe

Arsonist

🍁

I mean that's a good chunk of change, no question.

But one of the best things about sales is the agency, the ability to control your own paycheque.

If you're actually considering it, then you need to dig deep into the team, past attainment, and all that. The numbers they're throwing out could just be an unrealistic carrot, especially as a start-up - they might not have the funds available to pay out that kind of money, and this is the way they ensure they don't have to.

Not saying that last part is necessarily true, but something of which you should be wary.

SalesaSaaSsin

Fire Starter

Sr. BDR

Good call, thanks!

TennisandSales

Politicker

Head Of Sales

I have been on team based selling and i loved it. here is how it worked:

commission was dependent on your variable comp. lets say 100K. Team quota is is $1MM.

you close a $500K deal that is 50% of your quota, you get 50% of your variable.
$50K

I found it to be really nice because the team actually was a team.

we cared about each others deals and would talk about them because I knew if they closed it, it would help me. and vice versa.

it also lifted people up and helped to avoid the negative spin of missing quota when others didnt.

I would do it again if I could. (if its set up right)

SalesaSaaSsin

Fire Starter

Sr. BDR

Appreciate the feedback @TennisandSalesthats what I'm envisioning. I'll find out more in my initial call with them. Any questions I should ask?

SalesaSaaSsin

Fire Starter

Sr. BDR

Would you go with a 50/50 split or 60/40 split in this scenario?

TennisandSales

Politicker

Head Of Sales

60/40. but thats just me. i like to have the majority of my comp guaranteed, ive also been mainly working at companies that are trying to figure it out so there hasnt been a massive potential to blow out quota.

butwhy

Politicker

Solutions Engineer

lol it's an SE comp plan for AEs. This is FASCINATING, I always wondered if the pendulum would swing that way during the bear market.

SalesaSaaSsin

Fire Starter

Sr. BDR

That's exactly what I was thinking. Through forums and posts on I see on LinkedIn, not a lot of companies are hitting their numbers collectively as a business.

CuriousFox

WR Officer

🦊

What exactly are you asking?

SalesaSaaSsin

Fire Starter

Sr. BDR

I'm asking within a team-based comp plan, which is the better option? 50/50 split or a 60/40 split for an individual at the AE position?

braintank

Politicker

Enterprise Account Executive

WTF is a team based comp plan?

SalesaSaaSsin

Fire Starter

Sr. BDR

Team based comp is rewarded based on a team’s collective performance vs individuals performance. For example, if someone on your sales team hits plan but you don’t you can still be paid out on commission of the team hits their number. It encourages team collaboration because no one is fighting over credit. It’s not common but some sales orgs do it.

braintank

Politicker

Enterprise Account Executive

No thanks

CuriousFox

WR Officer

🦊

Hmm this is a new concept to me. I don't really care for it either lol.

SalesaSaaSsin

Fire Starter

Sr. BDR

This is the first time I've heard of it since my early days in sales at Best Buy, where the business group (i.e. Home Theater, Appliances, etc) had to hit plan collectively for everyone to hit commission. The only downside is kinda like group projects in high school when you get an A on the project but you have that one person who didn't really contribute also bask in the glory lol

CuriousFox

WR Officer

🦊

😎

UrAssIsSaaS

Arsonist

SaaS Eater

Im out from the start. Its one thing is there is an incentive or small component of your comp plan that is tied to team performance but no chance am I basing my earning potential on shithead larry thats out partying til 4 am 5 nights a week.

Hard pass.

But if you're dead set on this role take the 60/40 split. Higher base protects you slightly against the high likelihood that you cant out perform your numbers.

cashmachine

Politicker

AE (Account Executive)

absolutely fucking not. sales is amazing because you get to control your own income, why would you sign that way?

fuck that.

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SalesaSaaSsin

50/50 or 60/40 OTE split in a team-based comp plan with accelerators?

20 comments

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