Olly

Account Exec

Comp plan for an AE in an early stage Start Up

Second post in this series: After 3.5 years working in corp I'm thinking to move towards a startup, as I think I will learn more and it would be more fulfilling. The start-up is after a very nice Seed in the SaaS industry. I will be joining as AE. They offer either an 80/20 or 50/50 split. We can start with one, and change to the other Curious to know the pros and cons of having a higher base versus a higher % variable, and what you guys would choose. Furthermore, what should I be aiming for in terms of equity (%)?

☁️ Software Tech

🚀 Career Goals

📉 Equity

20 comments

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butwhy

Politicker

Solutions Engineer

I would say 80/20 because this is taking on an insane amount of risk and even as an internet stranger I am worried more about your wife and toddlers. Take 80/20 initially so that you at least have a paycheck the next 4-6 months, get your feet on the ground, and if you start crushing it, you can move to 50/50.

Equity just take something equivalent to everyone else. but do it knowing 99% of equity doesn't matter in the long run.

Olly

Catalyst

Account Exec

Thank you - I appreciate your comment. Why equity doesn't matter in the long run?

butwhy

Politicker

Solutions Engineer

Because for equity to pay out you either have to be acquired for a much bigger price than your valuation (and that's not happening for another year or two with the recession and re-valuation crisis about to hit in the VC/PE market) or you go public. Or you go public and then get acquired. A large majority of people never see a dollar on their equity.

If you think about startups that make it to those scenarios, you can think of it like a funnel with lots of seed startups and very few startups with a successful exit. We are in a hard market, in my experience it is about to get even harder, it's just not worth doubling down and negotiating higher equity as you join. You can always ask for more if you get in there and become convinced it's going to be successful.

braintank

Politicker

Enterprise Account Executive

80/20 for sure

Diablo

Politicker

Sr. AE

80% base as that is the guaranteed $$

pirate

Big Shot

Account Executive

80/20 because it's better to have more savings. It looks a bit uncertain with everything so max out savings. Minimize spending. I'm personally just laying low for a while

Sunbunny31

Arsonist

Sr Sales Executive 🐰

This is that same start up as the last post? Is the comp higher than your current $$?

Olly

Catalyst

Account Exec

It is the same start up - Comp is indeed higher.

CPTAmerica

Opinionated

President/CRO

Are you their first AE?

Olly

Catalyst

Account Exec

Yes sir

CPTAmerica

Opinionated

President/CRO

Take the higher base. No way they know what the actual sales cycle is going to look like at scale.

Maximas

Tycoon

Senior Sales Executive

80/20 Definitely 4 sure!

AnchorPoint

Politicker

Business Coach

A base is simply commission paid over 12 months. What do you believe is your potential? If it is unlimited and you will exceed the base early, 50/50

braintank

Politicker

Enterprise Account Executive

That rarely happens at a Series A

Olly

Catalyst

Account Exec

Agree. That's why I'll go with 80/20

Olly

Catalyst

Account Exec

Yeah I'm gonna go with 80/20 to fuel my efforts in the beginning and once we'll ramp up (if), we have the option to switch to 50/50

braintank

Politicker

Enterprise Account Executive

Wise choice

CuriousFox

WR Officer

🦊

If you have the option to do this then why not go for it?

Olly

Catalyst

Account Exec

I was just wondering if someone thinks otherwise

kneehigh

Politicker

Senior Enterprise AE

Yes , so 80/20 given it’s not even series B yet…it all comes down to product market fit a lot too and how well you know the specific industry. I joined a series B now going to C and only after 1.5 years am I now getting decent commissions and looking like hitting over 100% of my EOY target by end of Q3. Startups are fun, you learn alot but you end up doing so much more than just sales - marketing, product, customer success, support…