SoccerandSales profile picture
SoccerandSales profile picture

SoccerandSales

Account Executive

Big Shot
Politicker
Executive
+9

Base Salary only vs standard commission

It's well documented here that I am in a base salary only sales role (it's weird I know). With me still being fairly young (24), it has allowed me to experiment and develop skills without fear of losing out on money. Now that I have more experience (and am crushing quotas conistently), I am being recruited for more traditional roles that are more 50/50 split. 

Curious to hear from other savages, how much higher does OTE have to be to be more attractive than guaranteed money? (yes I know you can't guarantee you hit the numbers but all of us like to think we will) 

At what point is OTE more attractive than base salary?

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*Voting in this poll no longer yields commission.
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8 comments

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TennisandSales
Politicker
9
Head Of Sales
glad you are able to experience a non commission sales role! ive been there as well for a period of time and i found the same thing. I was able to focus on my skills and try to develop certain areas without the fear that its costing me money.

your question is hard to answer here is how im thinking about it:

if im making $100,000 base, i would be looking to get a role that has a $100,000 base + commission. not a role with a lower base but the chance to make more.

i will always prioritize/ protect the number that I am guaranteed. ive just been burned too many times.
SoccerandSales
Big Shot
4
Account Executive
My sentiment tends to be similar, the only issue I have found is the higher I go within my current company, the less likely I am to find an external role with the same base salary, hence the question
Space_Ghost20
Valued Contributor
3
Account Executive
I only interviewed with one company that did straight base salary, no commission. Basically if you hit your number and your manager thought you were ready, they'd bump you to the next pay band every six months. Starting base was $60k, and if you did really well you could expect to be at ~$100k after two years. Everyone I asked advised me to run the other direction.

I'm not entirely sure I would call straight base a "guarantee." If you don't perform, you're still probably out of a job. What it does offer is some kind of predictability at the cost of essentially capping your earnings. With a few exceptions, I've generally been at~105-110% of my quota at most jobs. So $125k OTE vs $125k straight base wouldn't make much of a difference to me.
jefe
Arsonist
3
🍁
@TennisandSales is right. OTE far too often means very little, and depending on the ramp it might take a LONG time to actually get there. If you ever do.

That being said, you probably do want to move to a position with some variable comp now that you've developed more skills and ability, so you can maximize your earning.

You'll want to look for a position with a base equal to, or at least close to, where you're at.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
I'm in agreement with Tennis and jefe. The base has to be high enough to cover me, but I love having the opportunity to double my income. I'd have a difficult time letting go of that.
But that said, nothing wrong with a solid base and if you're happy, then that's really what matters.
CuriousFox
WR Officer
1
🦊
It's gotta be an attainable amount to lose the comfort/reliability of base, ya feel?
Kosta_Konfucius
Politicker
1
Sales Rep
Median W2 take home difference of 20k after doing research/backchannel
SalesBeast
Politicker
0
Sales Leader
Depends on how big of a base you are getting now. If you get a huge base then screw looking at OTE. But if they are jacking you and paying you 100k or less than I say go look for a 100k base (minimum) and paying commission.

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