Cheerleader

Director of Sales

Best Comp Structure for First Startup Sales Hire?

I recently was asked to design my own comp structure as a first sales hire for a new startup. I'd like to poll the group for some ideas. I think the compensation should be fair to both parties given the work and complete lack of sales foundation/process. Not sure the standard 50/50 model would be a fit.

Realistically, what type of compensation structure is equitable for a first sales hire for an early stage startup?

If you were to wave a magic wand, what tiggers/incentives would you put in place that are both simple but mutually agreeable?

☁️ Software Tech

💰 Compensation

🤝 Interviewing/Offer

11 comments

Sort by:

poweredbycaffeine

WR Lieutenant

☕️

While I'd love to help, it would be impossible to help you design one without knowing the intimate details of your business op model.

Any details on margins, CAC, COGS, etc?

Cheerleader

Good Citizen

Director of Sales

These are great questions and I can look more into them. I don't have a lot of details to work with as they are just signing their first customers. The company targets software engineers and developers.

poweredbycaffeine

WR Lieutenant

☕️

Yeah, I'd skip a comp plan with any variable at this point. Go with a heavier base, then after year one when you know your numbers, you can set commish based on the figures above.

LordBusiness

Politicker

Chief Revenue Officer

I was going to say, product? market? target audience? Bueller? Bueller?

Cheerleader

Good Citizen

Director of Sales

Good call out, I should have added more specifics. The company sells a tool for software engineers and developers. Mostly targeted at CTOs or CPOs of software companies.

They do not have a pricing model or any sales structure so there's a lot of unknowns.

UrAssIsSaaS

Arsonist

SaaS Eater

With very little context and no sales to speak of, start here:
https://www.saastr.com/a-very-simple-sales-comp-plan-for-your-first-sales-reps/

and dig deeper on their content, its a fantastic resource for SaaS startups

CuriousFox

WR Officer

🦊

Look at you coming in hot with the resources. 🔥

Cheerleader

Good Citizen

Director of Sales

Very cool! Thank you for sharing!

januszgzre

Contributor

Head of SDR

I was in this position two years ago. I was at a place with a pretty solid path to quota, and then went to another startup as first sales hire... I took 85% of my previous OTE as a base with an all-or-nothing bonus structure...

It worked out okay. It sucked sometimes, but overall, I'm glad I went the heavy base route.

Cheerleader

Good Citizen

Director of Sales

Yeah absolutely agree with the heavier base. Was thinking 15%-20% commissions on deals sold as well since they may be very few in the first 12 months.

They are well funded so I think customer acquisition and logos is paramount.

AnchorPoint

Politicker

Business Coach

High base sliding to more commission

Bravado is a community of trusted sales professionals endorsed by their customers.

Products

The War Room Jobs Salary Guide Tech Sales U

Company

About Us How It Works Blog Bug Bounty

Contact

Press Careers

If you are hired as a contract sales rep by a Bravado customer, we may ask you to prove access to the employee email account provided to you by that customer. This data will be shared with customers to track your sales productivity; customers can use this data to confirm you meet the minimum activity requirements to pay out your ramp stipend and commission.

Cheerleader

Best Comp Structure for First Startup Sales Hire?

11 comments

Related posts

First SaaS sales comp plan? Framework for you

What companies have the best comp for sales people?

Aussie needs help! Comp plan & Lead distribution for a new startup