Comp for Seed Stage Company

Hello sauvages,


I know we have a few residents here whose advice around this topic is "stay faaaaaaaaaaaaaar away." Which, generally speaking, I agree with. I'll get into the details later if people are interested but for now I'll try and stick to the question.


What comp should I be looking for as the first sales+CS hire?


Bit o' context, the company is backed by a very well-regarded and high-performing growth tech PE firm. Basically just exited stealth. I have a close relationship with the founders and they want me to hop on before I move to my next gig.


My responsibilities would be vast - and let's assume the equity component is up to snuff. That leaves base + bonus which is where I'm a little perplexed. I would be full-cycle sales targeting SMBs at this stage. Additionally I am CSM and working to get their PLG motion smoothed out. This, of course includes converting self-service/freemiums.


I know about the risk. I know about the work. I know all too well what the culture will be like. I just need some help figuring out what % of deals should flow to my pockets as an AE, and maybe what that split would look like under expansion too. What kind of base makes sense?? This is my first time with an opportunity at such a young company and I want to give their founding team a respectful offer not only for them, but for myself as well.


Thanks for reading all of this dumb ass post and stay blessed out there.

💰 Compensation
8
TennisandSales
Politicker
9
Head Of Sales
So im not exactly sure what the base + bonus should be specifically. BUT

I would consider going 100% base + Bonus attached to company metrics.

Since much is up in the air, it might be a good idea to remove all commission for the next year. just focus on getting the first customers and start to learn more about the price point, sales cycle, ideal customer profile ect.

This way you dont get F'd on comp becuase its harder to sell than you thought, and the founder doesnt end up paying you way more than he thought, if its easier to sell then everyone thought.
jefe
Arsonist
4
🍁
Really solid approach here
antiASKHOLE
Tycoon
3
Bravado's Resident Asshole
I second this x923845293847502938457... don't get F*cked
Diablo
Politicker
2
Sr. AE
Great advice
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
What a great take. +1 for the approach.
ConwayStern
Member
1
AE
THIS is why you get paid the big bucks dawg. Much appreciated.
Arzola
Valued Contributor
1
Business administration
Agree 100%
punishedlad
Tycoon
1
Business Development Team Lead
This is your answer. I can't add anything else. Great advice @TennisandSales
TennisandSales
Politicker
0
Head Of Sales
🙌🙌🙌🙌
FinanceEngineer
Politicker
4
Sr Director, sales and partnerships
I would get a guarantee on comp. Since it’s mixed, I would have the bonus/commission tied to KPI and sales. That way you have an out. But make sure to get the cash and some equity. This will allow you to change things up after year 1 when you see more of what is going to happen
ConwayStern
Member
2
AE
I like your style.
FinanceEngineer
Politicker
2
Sr Director, sales and partnerships
I like your style too
ConwayStern
Member
1
AE
are you… flirting with me? 🤭
Kosta_Konfucius
Politicker
0
Sales Rep
Love it!
WhoDey
Opinionated
1
VP of Sales
Make sure your base is high enough to cover all your expenses. If they want to through bonuses or commissions on top of that, great...but don't get bamboozled by "OTE" with a meager base.
Mendizo
Opinionated
0
Sr. Director
Great answer by TennisandSales there to help protect yourself. I would just add asking for an equity component. Every founder will be prideful and value equity, and it's at the very least a way to test their response. Smart ones will know the value of equity, not smart ones will easily give it away. I'm seeing in some early-stage job postings public numbers for the equity they are giving, and for sales roles it looks to be about 0.5% for round A companies.

Getting 0.5% (or less) will likely turn out to be nothing (just given the high rate at which startups fail), but it's a long bet that may just pay out. Depending on your risk appetite, you may decide to take a little less ongoing cash (base/bonus) to secure higher equity if they're willing, and how you are feeling.
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