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(De)Promotion?

I was chatting with a coworker that said, although they technically got a raise (promoted to Senior) that came with a pay and OTE increase, the amount that they’re paying him out (percent of commission per deal) decreased? Is this normal?


I’m on track to be promoted as well..but is it worth a 30% increase in quota to make less per deal?? Should I take a promotion if offered?

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BigMeech
WR Officer
+11
Coors Light Advocate
So, the math is tricky. Technically yes. If you take your OTE and * your %, because the OTE is higher than it used to be, they have to drop the % per deal to even it out. That is what happened to me anyway.

Example:

My OTE is $10, and I make 10% per deal on a $100 quota. If they raise my OTE to $12 and raise my quota to $200, if I still get the same 10% I would actually make $20 instead of the $12 I am supposed to. So, they have to drop the % per deal to match the OTE. Accelerators should stay roughly the same though.

You still net more in the end than you did before the OTE increase. What you want to look for, were any decreases in accelerators post 100% attainment. That is the red flag. 

Normally this happens when the quota increase is disproportionately higher than the OTE increase.
Justatitle
Politicker
+8
Senior AE
The logic behind this is that the company will be exposing you to bigger deals by nature of the promotion so if you kept the same comp plan it would break and they’d be paying you crazy amounts although they’re the ones exposing you to larger organizations. It sucks but it shows career progression so yes it’s worth it.
SuperSRAEVI
Account Executive
Even if the territory and everything else stays the same? (promotion would be to keep working SMB deals)
Justatitle
Politicker
+8
Senior AE
Hmm in that case it’s a little different. Doesn’t seem like it correlates but do you have the ability to negotiate it? 
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