LambyCorn

A mfkn E

Full cycle AE 100% comission based- what % comiss should it be?

Hey bros so im about to get promoted as an AE first time ever, crazy as it sounds I want to do it 100% comission based instead of base + commission. Of course, so I can get a really high commission rate. Deals are 10k, 15k and 28k. Some contracts are 100k+. My company agreed, we are negotiating numbers next month

I have never been an AE, so I got a couple questions:

What is your comission % per deal?

Whats your quota? And do you reach it or fall short?

☁️ Software Tech

🍾 Commission

32 comments

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CuriousFox

WR Officer

🦊

I need a base. Nothing is guaranteed 🤷‍♀️

Sunbunny31

Politicker

Sr Sales Executive 🐰

So it's all relative. Me making my quota in B2B Enterprise software SaaS may not have any bearing on someone selling B2C or SMB goods. What are you going to be selling?

braintank

Politicker

Enterprise Account Executive

Why don't you want a base?

Sunbunny31

Politicker

Sr Sales Executive 🐰

An excellent question. 100% commission means that the rep is taking on all the risk associated with selling. A good base means the company is working in partnership with the rep.

LambyCorn

Arsonist

A mfkn E

I sell software used by HR and TA to evaluate software and develop engineers, data scientists, etc. They use it during the hiring process. We work with fortune 500 companies as well as medium-sized ones.

I want commission based because I previously had a base of $52k and an OTE of $60k. (not much different) but I got offered the same quota with no base and $78k if I reached quota (3 qualified meetings per week)

Sunbunny31

Politicker

Sr Sales Executive 🐰

So are you a closer? And how does the licensing work?

LambyCorn

Arsonist

A mfkn E

Not a closer yet, only ever been an SDR- I'm about to get bumped into the AE role this November.
When I started as an SDR, I had a base of 52k and an OTE of 60k; my quota was three qualified appts per week. We switched the comp model to commission based as an SDR, where if I reached the same quota, I would make 78k, not 60k

So I took the offer, and since it's been pretty much the same salary as before, I went on two weeks with no appointments, then banged like eight appointments this week, so it balanced out again

As I'm going into the AE role, I want to keep a commission-based structure, and get a high % on deals to make, more money.

LambyCorn

Arsonist

A mfkn E

dude what im thinking is maybe im underestimating the difficulty behind closing deals lmao and im shooting myself in the foot with a 50 cal S&W here

*But I will give it a shot, I want to figure out what % on the commission would make sense - im thinking 1/3 of everything I bring in. Is that reasonable? Could I be for higher?*

Sunbunny31

Politicker

Sr Sales Executive 🐰

You are literally taking all the risk on here. If you’re going to stick to this plan, it had better be for significantly more than you’d make on a regular base + commission to make it worthwhile. In any case, with the promotion, you should reasonably expect to make more $$.

LambyCorn

Arsonist

A mfkn E

Let me ask you something, what % commission are you getting now? And what is your quota? Your base?

I just want to make sure I don't go in shortchanging myself

I appreciate it if you guys could help me out, honestly !

Cheers

Sunbunny31

Politicker

Sr Sales Executive 🐰

It still is very variable. I live in an area with a high COL, have a large base, and get 12% plus bonus on my typically large deals. But selling Enterprise tech is very different than other products or solutions, so it’s hard to compare unless you’re in my area, in my industry, with my experience. You sound very enthusiastic and confident, so what you’re doing may make a ton of sense for you.

LambyCorn

Arsonist

A mfkn E

How much of your quota do you honestly, reach?

Sunbunny31

Politicker

Sr Sales Executive 🐰

Usually 100%. But I can live off my base. So I’m covered if I have a weak quarter.

LambyCorn

Arsonist

A mfkn E

Awesome to hear someone reaches quota 100% ,you don't see that very much
good for you man

If you got paid 1/3 on everything you bring in - would you make more or less than what you are currently making?

LambyCorn

Arsonist

A mfkn E

No base, just 33.3% of 100% of the revenue you have brought into the company

Sunbunny31

Politicker

Sr Sales Executive 🐰

I’d make about the same - with the peace of mind having a very good base and gives me. Accelerators and target bonuses push me over.

But everyone’s situation is different. My sakes cycle is long. While I may land a 7 figure deal a few times a year, there may be months that I don’t close anything. That would be tough for me to budget around.

I also have kids and a mortgage, along with other expenses. Not having a regular paycheck would not suit me in my lifestyle. Finally, getting things like car loans and mortgages (in particular) are usually tied to your base. If you are interested in either one of those things any time soon, you’re going to have an uphill battle proving your income. Just some food for thought.

BlueJays2591

Politicker

Federal Business Dev Director

If this is your first AE gig, I would take some sort of base salary. I understand the thought process behind it, but if/when you hit a downturn, you've got nothing to lean on. Big upside and downside, but I would protect myself slightly if I were you. Just my two cents that's worth maybe less than a cent.

Justatitle

Big Shot

Account Executive

There’s so much to understand. Personally if I’m not guaranteeing myself a salary I’m going to want a large chunk of what I sell. 30% at least

jefe

Arsonist

🍁

Why would you want 100% commission instead of the peace of mind of having a base? ESPECIALLY for your first AE role. I don't get it.

LambyCorn

Arsonist

A mfkn E

With base you get paid 6x what you produce, straight comiss 4x what you produce = 1M quota ÷ 6 = 166k call it 50/50 split. 83k base 83k comiss

Straight comiss, 1M quota ÷ 4 = 250K OTE 0 base... of course if I really fall far from quota im butt fucking myself 🤣🤣🤣

LambyCorn

Arsonist

A mfkn E

And I am 100% aware that this being my first time as an AE is where I should re consider and give myself 1 year of learning the ropes of the role. Once I get comfortable and reach quota, switch to comission based

But on that regards I actually just got myself a part time early morning 5-9AM hours, so I'll use that to pay my survival bills and do the AE comission based gig hoping to survive. The part time wont pay for everything, just basic needs. Which gives me the piece of mind of, if I dont close I dont pay rent this month 🤣

jefe

Arsonist

🍁

Yea I'd never take that risk as a first year AE. Or probably ever.

Take the guarantee and see how you do. It's not like you'll be making peanuts.

And instead of working another job, put that energy towards your sales job.

LambyCorn

Arsonist

A mfkn E

I took that offer, first week I reached my previous base of 1k per week, then I went on a 2 week dry spell then just crushed it this week and made 3 grand

LambyCorn

Arsonist

A mfkn E

so funny enough the numbers came exactly back to my previous base.. but I know I can make a shit ton more if I pull myself together and discipline myself. If I get 1 qualified opportunity per day right now, OTE would be $130k - I totally belive thats do able, 1 qualified appt per day

Diablo

Politicker

Sr. AE

If you are confident, this can be a right choice. Man I need base + commission both.

LambyCorn

Arsonist

A mfkn E

Question for closers: if you would bring in 1/3 of everything you close, no base - would you make more than what you currently make?

braintank

Politicker

Enterprise Account Executive

Can your company afford to give you 1/3?

Maximas

Tycoon

Senior Sales Executive

I guess it would be still variable.

LambyCorn

Arsonist

A mfkn E

yea the meeting went shit, I told them no way - more negotiating in 2 weeks
their shitty offer was 15% of all revenue I bring and a base salary of $18k LOL

I told them for 18k I need about 1/3 of everything I bring not 15%

YoursTruly

Politicker

Account Executive (SaaS)

Lol of course they said yes. You just absorbed 100% of the risk

LambyCorn

Arsonist

A mfkn E

I would think so - but apparently not for 1/3 of everything I bring in lmao

carbonara

Executive

Account Executive

Hell no!!!!

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LambyCorn

Full cycle AE 100% comission based- what % comiss should it be?

32 comments

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