I am in negotiations for a SaaS Account Manager job. I would like advice on how to move forward.
Here is some background info on the company structure:
- The smallest deal is $50k (cost of 1 upgrade). Larger clients: $100-150k
- I'd manage 10 large clients, plus 20-50 smaller ones
- "Because they are growing things a lot of things are in flux. Looking at last year, the team made $5M for the year". Other than me there is only 1 more AM so I guess it's about $2.5m per person?
- Uncapped because they are a "growth business "sky is the limit" so there are no targets set right now"
- There is a 401k match at 6%
- They are about to transition clients onto a new version of products so within 6 months or so "there should be a lot of upgrade opportunities."
Below is their first offer:
You will receive an annual salary of $100,000 per year, payable semi-monthly, according to our payroll calendar, with full time exempt status. It is agreed that you will be based out of Los Angeles, California. You will also have 3 weeks of vacation, standard health insurance options, and reasonable mobile and internet paid for. In addition to your base salary, you will be eligible for target commissions that are outlined in a separate document. At target, your annualized total variable commissions will include 4% commission on new sales and 2% commission on upgrades and sales to existing customers. You will have a guaranteed commission of $15,000 during your first year of employment.
I tried to negotiate a stronger base salary. If they couldn't increase that than I told them that I'd like a stronger percentage on commission and more PTO.
Her response was they were maxed out on base, they weren't allowed to increase PTO due to company policy, she would see what she can do around commission, but she could add an accelerator once I hit a target.
Below is their revised offer:
You will receive an annual salary of $100,000 per year, payable semi-monthly, according to our payroll calendar, with full time exempt status. It is agreed that you will be based out of Los Angeles, California. You will also have 3 weeks of vacation, standard health insurance options, and reasonable mobile and internet paid for. In addition to your base salary, you will be eligible for target commissions. Your annual sales target will be $1M per calendar (prorated based on your start date for your first year of employment), your annualized total variable commissions will include 4% commission on new sales and 2% commission on upgrades and sales to existing customers. You are also eligible for 1.5X commission accelerator for over achievement of quota goal; 1.5X is only paid on revenue above quota goal. You will have a guaranteed commission of $15,000 during your first year of employment to be paid in quarterly increments.
There isn't much of a difference. She basically only added an accelerator.
I really need this job as I've been unemployed for 6 months so I don't want so scare this off, but I want to make sure I'm getting a good deal and I have all the info I need to make an educated decision (and I'm newish to sales).
What do you think about the offer? How would you respond? Is there any missing info that I need before signing/making a decision? Would appreciate your advice.
Thank you!
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