washedD1soccer

Regional Sales Manager

60% increase in quota YoY

I received my quota for this year recently and noticed that after achieving over target in 2021, my new number is 60% higher than last years. My company added a "great" 8k more to our OTE. Am I wrong for thinking I am getting fleeced?

I'll also add that my OTE is about 190 on a quota of 2.2 million.

Am I getting screwed?

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Yes No Time to look for a new job

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23 comments

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funcoupons

WR Officer

👑

That OTE seems just ok for that quota, but it depends on your industry. Do you feel your quota is achievable or are you really grinding it out and stretching to get there every year?

washedD1soccer

Politicker

Regional Sales Manager

I inherited the territory 2 years ago that had never finished over 40% historically. I finished this last year at 140%. Part of the quota felt achievable and then others felt way out of line. I grew the territory 800% organically but the quota never felt right. It was an absolute grind to perform how I did. I’m in device and had to travel 2-3 nights a week.

funcoupons

WR Officer

👑

Not a great situation to be in. I'd keep an eye out for better opps if I were you.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

how are they justifying the 60%? Do the numbers support it or is a corporate thing where they either what to make 100% quota achievement (and any quota accelerators) impossible?

washedD1soccer

Politicker

Regional Sales Manager

They are justifying 60% due to the growth number we have to hit as an organization. They split it out across the reps evenly to achieve the growth number from up top.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Ok, so it’s corporate thing, not a market thing. That sucks since it may/may not be a feasible number and not every territory may support the increase.

CuriousFox

WR Officer

🦊

I'd start my job search friend.

Sunbunny31

Arsonist

Sr Sales Executive 🐰

Yes, and look around for a new job.

Jewcan_Sam81

Politicker

Account Executive

That’s ridiculous

justatopproducer

Politicker

VP OF SALES -US

I’d ask for a 60% increase in salary. If they expect that it’s possible to hit that kind of growth YoY, than it shouldn’t be a problem to increase your salary since I assume you won’t make as much in commission by hitting accelerators over 100%.

payton_pritchard

Executive

RSM

I guess it's somewhat relative? Looking at your replies it looks like its just a top down forecast assignment which i personally think is ridiculous.

They're saying we took a bunch of VC money and now have to hit ridiculous growth targets and our CEO and VP Sales signed up for this unreasonable number so now you all have unreasonable quotas, instead of we're experiencing growth/increased demand/etc. and think that because of this you will have the ability to close significantly more. To me it's a poor management and a failure of leadership

AnchorPoint

Politicker

Business Coach

Were you part of the goal setting or is this just a wish list number? Is it justified? If not, start looking.

washedD1soccer

Politicker

Regional Sales Manager

It was handed to me without getting any input first. Then a complicated formula was used to try to explain the reasoning but ended up making 0 sense.

Blackwargreymon

Politicker

MDR

That OTE seems just ok for that quota, but it depends on your industry

LambyCorn

Arsonist

A mfkn E

did you just STEAL a coomment for that comish? dats nasty

GreenSide

Politicker

Sales manager

How did the team do overall vs last year’s quota? If you took last year’s sales against this years quota, what does it look like?

washedD1soccer

Politicker

Regional Sales Manager

The team averaged about 110% to quota. The CEO made a claim that they paid us too much (which is another red flag for me).

GreenSide

Politicker

Sales manager

If the team over-achieved, quotas were too low. It sucks, but that's the truth. Companies don't grow and succeed by every sales rep blowing past quota. I believe best practice is for 80% of reps to achieve quota.

washedD1soccer

Politicker

Regional Sales Manager

I definitely get what you’re saying. Paying overage and accelerators on reps who have over-performed can get expensive, especially if a lot of the reps did well. However, I would argue that the additional revenue that reps that are having great years are bringing in, would actually make the company more money. I think it’s a bit short sighted for a company to focus on the expense line item of commissions paid without understanding that for every $1 they’re bringing in additionally, they’re probably only paying .10 to the rep. I think it would be a different story if reps who hit quota just stopped working and didn’t do anything else but most reps hit the gas once they’re over quota to maximize their earnings. Long story short, I think blowing out the year can be a win win for both the company and rep. But what do I know?

Beans

Big Shot

Enterprise Account Executive

Was there a base bump as well?

washedD1soccer

Politicker

Regional Sales Manager

We get a base bump if we hit leadership metrics as well as performance. Purely inflationary. Think 2-4K.

Maximas

Tycoon

Senior Sales Executive

I guess it's Time to look for a new job.

Error32

Politicker

ISR

I took a full week off and he did indeed cover. Granted I am brand new so didn't have too much to pick up, but it was super nice and was the first time I have completely disconnected in 5 years.