cgo91

Senior Client Executive for Hire

Commission Structure

Recurring Revenue - at my current company we get paid a one time 200% for recurring revenue sales as opposed to a monthly commission based on ACV. I find this strange, but wanted to see if that's the new standard in Sales.

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22 comments

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NoToBANT

Catalyst

Senior Account Executive

What do you mean? If you sign a 10k deal they pay you 20k?

cgo91

Big Shot

Senior Client Executive for Hire

If I sell a $50K deal, they pay me a one-time commission of $60K, no matter the term length. If the term is one year, I come out ahead, but if it's a two —or three-year deal, I lose, IMO.

salesjoe

Opinionated

Is that $50K monthly?
Not good at math here but I think a $60K commission on a $50K annual deal is pretty f'ing good lol.
I think you need to add some more detail here.

cgo91

Big Shot

Senior Client Executive for Hire

No, $50K for the life of the deal.

oldcloser

Arsonist

💀

This is common, yes

cgo91

Big Shot

Senior Client Executive for Hire

Thanks!

salesjoe

Opinionated

Ummm it is very uncommon to get paid more than the value of the current deal.
I would not leave that job until they change this amazing comp plan.
The average for new biz would be 8-12% on the TCV, and 4-7% for the renewals where I've been.
Some people get all the good luck.

oldcloser

Arsonist

💀

This thread… NO, nobody’s paying anyone $60k for a $50k deal. And YES, I want that job. Maybe a remedial course in what TCV is.

cgo91

Big Shot

Senior Client Executive for Hire

Yeah, good point. There is no TCV on our deals, there’s no contract and no terms. Customer can cancel at any time.

oldcloser

Arsonist

💀

Wild West

Sunbunny31

Politicker

Sr Sales Executive 🐰

I’m also not understanding the math. 🤔

jefe

Arsonist

🍁

Same

oldcloser

Arsonist

💀

I think I get this. A $12i ARR deal is 1k MRR. You get $2k, yeah?

cgo91

Big Shot

Senior Client Executive for Hire

A $12K ARR is a one-time payment of $14,400, with no MRC (monthly recurring commission)

oldcloser

Arsonist

💀

They pay you $14,400 on a $12k deal?

cgo91

Big Shot

Senior Client Executive for Hire

Yes, for the life of the deal. Whether it’s a one year deal or a ten year deal.

salesjoe

Opinionated

trying to figure out how to apply for this job also? like, what's the catch here? this sounds amazing.

braintank

Politicker

Enterprise Account Executive

Is this your CFO?

CuriousFox

WR Officer

🦊

☠

NoToBANT

Catalyst

Senior Account Executive

Bro - is your company run by a monkey? Lol

Here are your steps to ensure you’re getting paid fairly:
1) STFU and never ever raise this to anyone inside the business
2) continue to do deals and get paid more than you bring in
3) when the company gets to around $5m in annual revenue, get the fuck out before they sack everyone ‘cos they’ve gone broke
4) yes you’re getting paid more than fairly

This is honestly, the most insane comp plan I’ve ever heard.

jefe

Arsonist

🍁

What are you selling!? What's the average contract length?

cgo91

Big Shot

Senior Client Executive for Hire

Managed Services. That's the thing: we don't have set lengths. In reality, the customer can cancel at any time, but that's rare.