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realjordanbelfort

Account Executive

Executive
Personal Narrative
Member
+1

Commission rate ranges for marketplace businesses

I've primarily worked in SaaS and typically see AE commissions in the range of 7%-15% of ARR. 

What are typical commissions for AE's within marketplace businesses? And are commissions typically based on GMV, net revenue, or other metrics?
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braintank
Politicker
3
Enterprise Account Executive
Can you elaborate on marketplace businesses
realjordanbelfort
Executive
1
Account Executive
AirBnB, Uber, and Amazon are all marketplace businesses with a consumer rather than B2B focus. Their revenue is their “take rate” of the GMV (gross merchandise value)
realjordanbelfort
Executive
0
Account Executive
Kind of like a distributor or value add reseller but they don’t hold any physical inventory
realjordanbelfort
Executive
2
Account Executive
Additional context - company I’m advising is a marketplace business for hospitality and their founder needs to hire their first sales hire. They don’t hold any inventory but partner with many suppliers of sheets, bedding, etc. that they sell to hotel chains. I’m trying to get a sense of what standard commission might be for companies with this revenue model (online marketplaces)
poweredbycaffeine
WR Lieutenant
1
☕️
Do you work at Vendr?
CuriousFox
WR Officer
1
🦊
👀🍿
AnchorPoint
Politicker
1
Business Coach
Didn't realize there is a standard. Every organization is different. At the end of the day, a professional sales person should make roughly 10% of sales or more.
ThatNewAE
Big Shot
0
Account Executive - Mid enterprise
+1, I didn't know there's a standard.
jefe
Arsonist
1
🍁
10% should be a decent benchmark
oldcloser
Arsonist
0
💀
Are you asking whether commissions are reduced due to the inbound? Which marketplace?
FinanceEngineer
Politicker
0
Sr Director, sales and partnerships
Don’t really know marketplace, but it tends to be on ARR (with 25-75% increases for multi year) if recurring, and TCV if non-recurring.
LambyCorn
Arsonist
0
A mfkn E
10%
Beans
Big Shot
0
Enterprise Account Executive
11-21% in SaaS depending on what level accelerator I'm at.

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