signandrecline

Enterprise Sales

Valued Contributor

Are your commissions capped? Pls help me review my comp plan

I just reviewed my comp plan, and it has been capped at 5%. We have the following slabs for commission -

0-15K - 2.50%
16K-30K - 3.00%
31K-45K - 3.50%
46K-60K - 4.00%
61K-75K - 4.50%
76K-1MM - 5.00%

I feel the jump from 76K to a million is massive, and being capped at 5% seems unfair given the amount of work that goes into closing a million dollars for our services.

What does this comp structure look like to you? I haven't really compared this with the comp structure of other companies, and hence don't have real benchmarks in place. Maybe what I have is pretty good, but I'd like to know from your experience.

Should comp be capped at a certain % level? I may be wrong, but I'm thinking of speaking with my manager on the 1 million jump. Perhaps, it can be capped at 10% bcoz I understand that after a certain % level - it doesn't make business sense and it NEEDS to be capped.

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🧢 Sales Management

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18 comments

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Diablo

Politicker

2

Sr. AE

Percentage is capped of course but the more number you hit, more amount you make of (ARR is directly proportional to Commission)

FamilyTruckster

Politicker

0

Exec Director, Major Accounts

Exactly. Make sure that you’re not capped at $1M.

also, what’s your opportunity above 76k? What’s the average hit for a customer?

signandrecline

Catalyst

0

Enterprise Sales

Avg is around 7K - 10K/customer. There definitely is opportunity, but it feels like I'll be putting in way too much work to go above 5% considering the gap between 76K and 1M

FamilyTruckster

Politicker

0

Exec Director, Major Accounts

I’d be pushing for higher % on the low end then if that’s where your sweet spot is. Focus where you’re making money not where you *might* be once in a blue moon.

signandrecline

Catalyst

0

Enterprise Sales

I'm sorry, but can you pls ELI5 for me?

I am touching 75K consistently. 5% of that will be much more than 5% of 15K.

FamilyTruckster

Politicker

0

Exec Director, Major Accounts

Had to look up ELI5, haha. Above you said you’re averaging 7-10k per customer, dropping you into the 2.5% range, and low opportunity up in the higher dollar deals.

If you have the relationship with your manager, find out if that’s what others are seeing. See if you can fatten your the commission where you sell majority, not the minority.

InQ5WeTrust

Arsonist

1

No marketing, mayo isn't an MQL

As @Diablo pointed out this isn't capped in the traditional sense.
Worth checking that there's not a hard comission cap at 1 mil

signandrecline

Catalyst

1

Enterprise Sales

I'll do that.

poweredbycaffeine

WR Lieutenant

1

☕️

Capping is when they say "you can earn this much, and after that, we stop paying you". % based ceilings are common for nearly every company...your situation does not scream "uncommon" to me.

RealPatrickBateman

Politicker

1

🔪Amateur Butcher🔪

👉 www.RepVue.com --> Salaries Tab, thank me later

SaaSData

Catalyst

1

VP of SaaS & Unit Economics 🏴‍☠️

I think the word capped is being misused here. Big difference between ceiling of the variable rate and the comp plan being capped.

No one would ever cap a comp plan. They have no risk in the company losing any money. SaaS is a beautiful thing, isn't it?

SaaS companies run an 80% margin. You could sell Affiliate SaaS products on the internet for 30-40%.

I have a friend doing it and making almost w2 $1m this year.

-SaaSData
lmk if i can help

text: (908) 676-SaaS - reach out anytime... 24/7

Blackwargreymon

Politicker

1

MDR

Capping is when they say "you can earn this much, and after that, we stop paying you". % based ceilings are common for nearly every company...your situation does not scream "uncommon" to me.

Clashingsoulsspell

Politicker

1

ISR

Capping is when they say "you can earn this much, and after that, we stop paying you".

LordBusiness

Politicker

0

Chief Revenue Officer

Yeah; this isn’t a cap. Capping would be your %’s going down as you scale up towards your targets. It’s a weird compensation plan, but doesn’t feel “capped”

signandrecline

Catalyst

0

Enterprise Sales

Curious to know why this comes across as weird (apart from the 76K to 1M gap)?

MR.StretchISR

Politicker

0

ISR

Capping is when they say "you can earn this much, and after that, we stop paying you". % based ceilings are common for nearly every company...your situation does not scream "uncommon" to me.

Mr.Floaty

Politicker

0

BDR

Maybe they needed x companies to evaluate fully and you were column fodder

Cyberjarre

Politicker

0

BDR

Avg is around 7K - 10K/customer. There definitely is opportunity, but it feels like I'll be putting in way too much work to go above 5% considering the gap between 76K and 1M

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