Thome

Sr. Account Executive

Commission/Compensation for a SaaS Sales Manager (Director- have three direct sales reps on my team)

Just became a high and mighty sales manager (please, call me Director...). What is a typical % of pay on your teams deals? Looking at a new commission plan and have no experience in this area.

Is it 3%, 5%??? My reps get 12% and accelerators after this.

💰 Compensation

🍾 Commission

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poweredbycaffeine

WR Lieutenant

☕️

Every business operates within its COGS model. The margins of each sale dictate the amount of commission that the business is willing to “give away” on a deal. All times I’ve lead a team I was bonuses on team attainment by quarter and annual periods. It was a number set in my comp plan for my OTE, and was not truly reflective of the deal flow itself.

Your numbers will only make sense to your business and will likely not be comparable. Someone told you 12% sounds reasonable, but that on-top of your reps cut may turn your CAC and COGS into a burn pit for the business.

Work with finance and leadership to review the COGS and CAC figures and work towards a per-deal or per-period number that works for everyone.

punishedlad

Tycoon

Business Development Team Lead

I'm not commissioned, but do have some performance based raise/bonus incentives. So can't really speak to this, at least when it comes to my current position. However, here's a previous thread where a lot of people outlined their commission structures:
https://bravado.co/war-room/posts/commission-structures-2

Thome

Sr. Account Executive

Yeah, I am asking here about the sales manager's comp...what is typical/normal?

Justatitle

Big Shot

Account Executive

As a director you have a larger number so it makes sense for a smaller % to be attributed to you. if you have 6 reps on the team and the team is achieving ~80% quota a 4% multiplier brings you to the same payout as a 12% multiplier at 100%. Welcome to why I will never enter management.

DungeonsNDemos

Big Shot

Rolling 20's all day

12% plus accelerators?? I'd be happy with that. Currently at 10% and accelerators at my SaaS company.

oldcloser

Arsonist

💀

You’re likely to end up working (getting worked) backwards from an OTE number. Base + x (where x= 100% of base) = OTE

aenima

Celebrated Contributor

Principal Account Manager

Still don’t understand why so many companies opt to have a management level for as little as 3 direct reports.

stew415

Good Citizen

CCO

Managers can be on a different split, 60/40 (base : variable comp) or 70/30. Your quota is either the sum of your reps’ quotas or can be a different target, depending on how well staffed you are (in other words, the revenue target can often be different than the quota roll up). Standard OTE to Quota ratio is 5x. Anything >5 is excellent for the company. <5 gets the company into dicey territory where sales becomes a cost center.

Maximas

Tycoon

-1

Senior Sales Executive

12% sounds reasonable to me.

poweredbycaffeine

WR Lieutenant

☕️

For the reps, as stated, or for the manager as well? 24%+ of each deal lost to commission could cripple some businesses.

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Thome

Commission/Compensation for a SaaS Sales Manager (Director- have three direct sales reps on my team)

10 comments

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