Jrandall

Manager-Corporate Training and Learning Advisor

Getting Commission (Underpaid)

A recent PO from Toyota for a Sale I made. I am making zero dollars in commission on this. I brought this client on, and I am continually selling to them. I make 88k a year and work with the 3 enterprise clients I brought on and still make zero commission despite bringing in almost 2 mil this year (Average Deal Size is around 75k) I really would like to make more and like some of the work I do, but I feel I am almost criminally underpaid. What are folks' suggestions? Like what is a good standard salary/commission for a services-based contract ( we do tech training) for an Enterprise AE? Should I be screaming at folks, to continue looking for new work? Suggestions.

Thanks Sales Gods!

💰 Compensation

20 comments

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CuriousFox

WR Officer

🦊

Time to renegotiate with your facts or find a new role.

antiASKHOLE

Tycoon

Bravado's Resident Asshole

yeah, time for renegotiations

jefe

Arsonist

🍁

You're getting hosed, bud! Time to renegotiate. Services should be like 3-5% as they're not as high margin.

Phillip_J_Fry

Opinionated

Director of Revenue

Why are you not being paid commission on this?

Jrandall

Executive

Manager-Corporate Training and Learning Advisor

I initially negotiated a deal for a salary with no commission when we had zero clients. I have now brought on 3 enterprise clients (and some others) with repeat business, and there is still this expectation that that arrangement is mutually beneficial. In hindsight, I undernegotiated myself, but it was a risk at the time to pay a "higher" salary with no guarantee for clients as the product was still in its infancy. But this is over a year we have had these clients and we now have a far more solid product (thanks to working with said clients). Like I said, I like the work we do, but I am torn, because, at some point, I have to look at what I probably should be making.

Phillip_J_Fry

Opinionated

Director of Revenue

The problem with taking a flat salary as a salesperson, is that it takes away motivation to sell, because you obviously get paid the same for selling $10M as you do selling $0.
It's probably time to sit down with management and voice your frustrations with compensation. If they're not willing to budge, it probably time to start job shopping.

Sunbunny31

Politicker

Sr Sales Executive 🐰

In my experience, services have a lower margin than product. However, that said, it's common to have sales reps selling services - we have a few here.
When you joined, there was no discussion around commission on sales? Do you have a quota?

Sunbunny31

Politicker

Sr Sales Executive 🐰

Ah, cross posted with others. Time to renegotiate. And by others, there are WR participants who sell training to give you a better idea of the % to target.

pirate

Big Shot

🦜☠️ Account Executive

You should be getting paid more. I suppose start screen shotting those POs and then well try and get an interview somewhere else?

Jrandall

Executive

Manager-Corporate Training and Learning Advisor

Well, the consensus seems to be I am getting pretty hosed. I am not too sure how a renegotiation will go, so I am likely going to double down on the hunt for Red October, or something like that.

Revenue_Rambo

Politicker

Director, Revenue Enablement

Year end is coming up so timing is good. Sot down and lay out the facts. You took this role at the agreement to help them get off the ground. As you’ve been successful the role has evolved.

Present your numbers in both new rev and upsell rev. Explain that you believe it would be fair to establish a new comp plan that factors in growth of existing accounts which was not part of original scope.

What you should have prepared is a suggested structure for variable comp. Not just a percentage to get paid but perhaps a quota for you to reach. Having just a percentage could be perceived as $$ out while presenting a target quota allows you to depict both $$ in and $$ out.

Before you present anything run the numbers based on what you closed this year. Would you be happy if you made $X? If no, then rework it. The last thing you want to do is suggest a plan that you ultimately won’t be happy with.

Also, if they are open to this idea be aware that why could ask you to drop your base some as an offset. May not happen, but don’t be shocked if it’s brought up.

oldcloser

Arsonist

💀

☝️ This here. All of it. 100% sane.

Sunbunny31

Politicker

Sr Sales Executive 🐰

This is really great. It covers everything you should ask for and prepare for.

Retired Sales Professional

I agree with all on this thread. Being paid a salary only in a commission rules environment is criminal. Unfair when you look at invoices.

Beans

Big Shot

Enterprise Account Executive

Comp plan language?

wolfofmiami

Opinionated

🐺

start looking ASAP, ik guys who sell sales training and they make 10-20% on each deal.

Jrandall

Executive

Manager-Corporate Training and Learning Advisor

Yowzers! I also know our profit margins are pretty lucrative the way we have our process set up.

wolfofmiami

Opinionated

🐺

Yeah you should be at least making 200 IMO

Kosta_Konfucius

Politicker

Sales Rep

Yeah my guess is ask for a raise or find a new role

AnchorPoint

Politicker

Business Coach

Employment is a two way street. If you are not happy, the company deserves to know it and be given the opportunity to respond. You agreed to the position, so keep the " criminally under paid" in check.

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Jrandall

Getting Commission (Underpaid)

20 comments

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