countingmyinterest profile picture
countingmyinterest profile picture

countingmyinterest

Account Executive

Politicker
Executive
Valued Contributor
+7

Alternative comp plan?

In late stages for an interview for a role and their comp is quite different, it's 80/20 split for a MM AE role.


Base is $120-130k and bonus is 20-30k depending on how team/company does.


It's quite different than typical 50/50 OTE split. Curious if fellow savages would ever try this kind of plan.


Would you ever try this comp plan?

Attached poll
*Voting in this poll no longer yields commission.
๐Ÿ’ฐ Compensation
๐Ÿค Interviewing/Offer
๐Ÿพ Commission
11

24 comments

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NoToBANT
Catalyst
3
Senior Account Executive
Not going to lie - Iโ€™d duck out immediately.

This looks more like AM or CSM Compensation

it largely depends on ACV, TCV, deal length etc etc but I think as MM you should be targeting 180-200k

Looks like they want the upside - the base is crap


P.s this is all caveated with these assumptions:
- you have significant experience
- deal size exceeds $25k p.a
- they are US or EU based

Before anyway starts arguing, I know itโ€™s not always black and white - but this looks crap
countingmyinterest
Politicker
2
Account Executive
I'm strongly considering it. I've had way higher OTE's at my last few startups, but the base is cushy and 100% inbound.
Quota is like $200k/quarter so for $800k/year quota is 5x OTE. Not terrible with more stability.
NoToBANT
Catalyst
0
Senior Account Executive
Also just reread - why would they compensate you on team performance as an AE rather than YOUR performance??
Rosie
Catalyst
0
Sales Director
Maybe my brain is slow Today but what did you exactly mean by โ€œ Looks like they want the upside- the base is crapโ€?
countingmyinterest
Politicker
2
Account Executive
Unproven enterprise motion but 100% inbounds, 0 hunting for net new business via cold outreach
Rosie
Catalyst
0
Sales Director
Good point.
NoToBANT
Catalyst
2
Senior Account Executive
Tbh itโ€™s probably my vernacular that was confusing

If they wanted an 80/20 split - the base should a lot higher (150-180k)

This split with that base makes it seem like they donโ€™t want to pay the commission so they can reflect it in profitability.

Typically compensation for a deal would be 10%, this looks more like 2/3% - it means they keep the remaining %%
countingmyinterest
Politicker
1
Account Executive
I have to mention it's 100% inbound and there's an SDR team to field appointments. More of an upsell motion, not pure hunting.
My prev commission splits have been 12-15% so commission is low, but base is pretty nice.
NoToBANT
Catalyst
1
Senior Account Executive
Iโ€™ll be honest - this changes the entire conversation

Iโ€™d jump at that chance if the base is higher than what youโ€™re on and you CBA to do outbound
oldcloser
Arsonist
2
๐Ÿ’€
This comp plan doesn't bother me at all if the $150k fits. MM carries different definitions. If this is for actual MM work, it's low. The structure? Sure, bring it.
countingmyinterest
Politicker
2
Account Executive
$200k/quarter quota and 100% inbound. I'll fucking take it.
Been burned by too many shitty sales leadership offering $200k OTE only to be let go in <1 year. $150k OTE but 80% base is wayyyyy easier ot budget.
oldcloser
Arsonist
1
๐Ÿ’€
Yeah- the idea sounds fine to me
medhardwaredr
Opinionated
2
Director of Sales NA
Sounds fine to me. Farming for 150k? Farm away and save diligently until you find something you want more. Who knows maybe youโ€™ll love it there. Thereโ€™s a lot to be said about a slower, easier and more personal/healthy type of job if it turns out to be that. Work life balance is golden at that price. Good luck!
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
I would take it and keep looking.
Justatitle
Big Shot
1
Account Executive
What scares me is they could easily decide that they're paying you too much on the base and cut bait, why are they willing to do this? Either product isn't selling great or it's selling really well and they don't want to pay big accelerators. Or it's for Monday.com where they pay a big base and then don't do commission in order to not promote bad behavior.
countingmyinterest
Politicker
0
Account Executive
Yeah, this is another factor. Product seems to be pretty sticky from what I can tell. They are still experimenting with upsell motion and don't have a typical sales motion I think.
I like Monday's comp plan tbh. More attainable imo.
Sunbunny31
Politicker
0
Sr Sales Executive ๐Ÿฐ
In some places, AE is more of a farmer - selling into existing companies. Is that the case?
countingmyinterest
Politicker
1
Account Executive
it's upselling into existing accounts. guess it's farming
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
Yeah, that explains the lower ratio of commission. Does this sound appealing to you? Is it a step up from where you are?
countingmyinterest
Politicker
1
Account Executive
Eh, itโ€™s more SMB but higher base and very flexible work/life balance. Can still do side roles too
Sunbunny31
Politicker
0
Sr Sales Executive ๐Ÿฐ
If it sounds good to you and has those positives, I'm not going to shoot it down.
fidelcashflow
Catalyst
0
Account Executive
80/20 split would be a dream with a team quota if the OTE is $200+. The OTE they are giving you is crazy low. Similar to what other people said, sounds like CSM pay.
0
Chief Sales & Marketing Officer
Both sides of the equation are too low. With a small upside, the base needs to be higher. Good sales people and good sales manager are more motivated by the upside. So using your 50/50 example, if the base was $130K and had a commensurate upside of $130K...we can talk. Is the upside uncapped? Are the variables upon which it is based within your control?
As a former executive recruiter specializing in Sales/Marketing/Consulting, I would try to focus the client on what their goal is...revenue ir cost containment. I can find an "A" player for a base of $180,000, and I can find an "A" player for $120,000, or I can find an "A" player for $90,000. But the A player at 90k will not be the same person as the A player for $180K.
When I was head of sales for a F500, my top performer had a base of $200K...and he sold $95 million TCV in the first year. Most of the salespeople whom I inherited, were paid $90K, and sold NOTHING. I told the president I don't need a team of people who can't do the job because we are focused on not overpaying the salespeople. I need people who can do the job...and they cost more. My number 2 salesperson was paid $150K base...and sold a $60 million deal. You get what you pay for.
Beans
Big Shot
0
Enterprise Account Executive
I'd take it for sure but I don't know HOW hard I'd work on it tbh.

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