Coastal_crusher profile picture
Coastal_crusher profile picture

Coastal_crusher

Sales Director

Politicker
Opinionated
Valued Contributor
+6

Commish structure - what are ye packing?

I couldn't find this in search so I'm curious to know, what do your comission plans look like?

No, not the love points we throw each other here (as fun as that is ❤️). Real world, what percentages do you guys get off the bat? I'm sure there'll be varying answers depending on industry, margins renewals, accelarators etc. 

I've mostly sold SaaS, highest I've ever got is 7.5% of TCV. Weakest I ever had back in the day is a flat $750 a pop
🧠 Advice
🍾 Commission
29

29 comments

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antiASKHOLE
Tycoon
8
Bravado's Resident Asshole
8.3 to 12.33% on total revenue sold plus monthly BoB payouts in tiers based on ARR from 4-6-8%
Coastal_crusher
Politicker
1
Sales Director
That .33% is pretty interesting - any reason it being that specific (instead of rounded to the nearest pct?)
antiASKHOLE
Tycoon
6
Bravado's Resident Asshole
we do yearly contracts. So I get the first month or $1 for $1 unless the deal is a certain threshhold, then I get more. it's just how their math works and I verified it haha
ChunkyButters
Tycoon
6
AE
10% base on ARR with varying accelerators up to 20+%
Coastal_crusher
Politicker
1
Sales Director
Wowza!
jefe
Arsonist
5
🍁
I’ve usually been 5-10%
TheArrowOfApollo
Tycoon
4
Digital BDR
Base + commission (C). C depend on gross profit (GP) brought in over the life of the deal. 7% C for for 15% GP, 8% C for 18% GP, and 9% C for 22% GP.
Sunbunny31
Politicker
4
Sr Sales Executive 🐰
12% on ARR, with a bonus for multi-year and accelerators after 100%.
FinanceEngineer
Politicker
3
Sr Director, sales and partnerships
Generally it’s ARR, 9% with multipliers for multi-year deals. The accelerates get it to 15% after 200% of plan
SoccerandSales
Big Shot
3
Account Executive
If I told you my sales role is base only would you believe me?
antiASKHOLE
Tycoon
7
Bravado's Resident Asshole
hmmm
Coastal_crusher
Politicker
3
Sales Director
Yes :(
And I’d personally shop around. How do you keep yourself motivated to chase otherwise?
SoccerandSales
Big Shot
2
Account Executive
High base. Promise of a job does some motivation, I am pushing for a commission structure soon.
Coastal_crusher
Politicker
2
Sales Director
Fair enough, if you’re happy and you like your company then why not? Speaking for myself though, I’ve been burned by false promises so I never put all my trust in the company I’m taking money from (à la Oracle debacle)
champchamp
Arsonist
3
Certified Savage
Hahaha love that you referred to bravado commish as "Love Points" 😂 let's not let it die and continue referring to them as love points, please. At least sporadically 😂
Coastal_crusher
Politicker
2
Sales Director
Love (and deals) make the world go round 🌎😂❤️
1nbatopshotfan
Politicker
2
Sales
7.5 for SaaS with multipliers based on upsell and term.
Diablo
Politicker
2
Sr. AE
7% on annual deals and 3% kicker that starts after 100%.
HappyGilmore
Politicker
2
Account Executive
10% on deals, with additional commission for things like selling mulit-year deals, additional support, etc.
AdsMakeTheWorldGoRound
Valued Contributor
2
Sales Director
% to goal. So 100% to goal gives me 100% of my quarterly commission. Minimum of 70% needed to get a dime.
thedue
Valued Contributor
2
VP of Sales
Our team is spoiled. 7-10% on ACV and we pay on year's two and three for multi years. Golden handcuffs.
msbiz
Member
1
Enterprise Account Executive
Typically 10% of ARR. Have had as high as 25% for a complete start up. I prefer to see a variable 10% up to quota and then an incentive for breaking quota. The incentives have been more of the pie or equity in the company. Equity is a great equalizer and a way to keep high producing reps engaged and wanting to see you succeed.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
anywhere from 2-15%. Too many variables to list..
RckChlkG33k
Big Shot
1
AE (Account Executive)
9% of total contract license value up front and 5% of services with an exponential accelerator after hitting quota.
JustGonnaSendIt
Politicker
1
Burn Towns, Get Money
Of course we use a convoluted way of backing into comp %

I have an annual quota. This year it is a single metric (i.e. every dollar is the same). In years past I've had multiple metrics (e.g. $XXX for License sales; $XX of Prof. Services / Education sales).

I am on a 50/50 OTE. So 1/2 of my OTE is my annual "Target Incentive Amount" or TIA.

Divide TIA by Quota and you get the % rate comp per dollar sold. This is my 'base incentive rate.'

Then we have a 'ramp rate' which multiplies the base incentive rate depending on attainment to quota.

Typically something like:
1x base rate up to 100% quota
2x base rate from 100% - 250% quota
1.2x base rate 250%+

So my comp on any given deal = TCV*Base incentive rate*ramp rate

And yes, I think it's super lame to reduce payout over 250%.

At the time of writing I believe the base rate I'm looking at is something like 3.8 %.

My most lucrative comp rate was 16% when over 100% quota at a previous company (startup).
GigabitChaser
Valued Contributor
1
Sr Account Executive
I'm on a squares model comp plan:

Example: Sell $17,000 of qualified MRR for the quarter (210% to quota)
210% x 200% = 420% (squared but maxed at 200%)
4.2 x $12,000 = $50,400
slaydie
Big Shot
0
Account Executive
We get 12% on ACV and then additional kickers once you hit 100%. Also additional few % if you sell a multi year deal.

Previous roles paid 6-10% ACV plus accelerators. And of course I get a base salary.
KendallRoy
Politicker
0
AM
About 16% ARR uplift before accelerators, no kickers for multiyear
Twenty20
0
Account Executive - MM
14.17% ARR 2x for new logos and additional kicker for 4&5 yr dealsCan get decelerated depending on payment terms.

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