IzzyWinning

Enterprise Account Executive

Have you ever made more in base salary than someone else on your team but you were both responsible for the same quota?

Death to Fluff guru, Belal Batrawy, put up this post on Linkedin and it made me think back to my last job where I was absolutely making more base salary than others on my team (granted I had more experience) but we were all under the same quota. I had never really thought of that as problematic until I read Belal's post. Check it out: https://www.linkedin.com/posts/belbatrawy_sales-management-hr-activity-6786385348214706176-gQSB

UPDATE:

I want to be clear that I know this is common practice. I'm mostly looking for people to weigh in on how this has specifically impacted them or their opinion on it - not just letting me know that it happens a lot. This has been established.

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funcoupons

WR Officer

👑

It is problematic. In sales, whoever has the same title and same quota should be making the same base salary. Anything different causes animosity among employees like you wouldn't believe.

I have a friend who worked at a company where there were 10k differences in base salary between some of the reps who had the exact same responsibilities and quota. To add insult to injury, there were even reps who had way less experience/skills making some of the highest base salaries. No rhyme or reason to anything, so people came to the likely conclusion that it was favoritism/nepotism.

Not sure if the company was just stupid and didn't think SALES people would discuss compensation with each other and figure it out or what...but it was a mess.

Wildcard

Opinionated

Account Executive

Giving a higher salary to people with less experience that were hired more recently really is insanelyy stupid. I can't believe companies do this and get away with it.

My advice, ask for a raise 2 - 3 times a year. Always ask for a raise after a successful milestone. In sales this is usually after a great quarter or after a big deal.

Always ask for a raise when the company asks you to take on more responsibility. If the company hires new people and ask you to train and mentor them, ask for a raise. You have more work and responsibility now, you need to get paid more.

Also, be clear that other companies are hiring to salespeople, and you have no issue with leaving.

SADNESSLieutenant

Politicker

Officer of ♥️

My last company the base was different and I was getting 45k while my peer was getting 60k, at times I was the best performer at the company, and YOY I brought in more revenue than anyone else in my segment or the segment above me, but when my 1 yr mark came I wasn't promoted - I yeeted

CuriousFox

WR Officer

🦊

This is why good employees leave. Companies complain constantly, even on LinkedIn, they can't hire enough people or retain them. Or that sales people "jump" too much. Here's a concept: pay your talent 🤔

champchamp

Arsonist

Certified Savage

Exactly, at my previous company 7 of us were just talking and compensation came up.

No one(besides the one with the higher base/ commission structure) was happy to hear that there was a 15K difference in base PLUS 10K on commission earnings for the EXACT SAME QUOTA and responsibilities.

4 of us have left the company since.

Broncosfan

Politicker

Account Manager

Last company I worked for reps were given different titles based solely on experience but those titles had 0 reflection on their quotas. They did however have a massive difference in pay. It was on a 60/40 split:
BDM- 81k OTE
BDE- 110k OTE
BDD- 140k OTE

All of them were typically given the same quota.

IzzyWinning

Tycoon

Enterprise Account Executive

Yah, that's messed up.

DaveFromCollege

Notorious Answer

Account Executive

I feel like Erika Davis hit the nail on the head there in the comments. I'll write it out it here so people don't have to fish for it, but I recommend liking her post as she deserves the credit and not me!

"As a rep, I would have asked for a clause that said if I can hit my quota consistently for 3 months, my pay will be raised 30K to meet the level of my teammates. My argument would be...if I can be as effective as the others, why do you care how long it took me to learn the skill of this job? Isn't it a sign I'm a faster learner, a more savvy teammate? If they said no to that, I would have signed the plan so I could keep paying my bills, but I would have immediately started interviewing elsewhere."

SADNESSLieutenant

Politicker

Officer of ♥️

MORE OF THIS THO

BigCheese

Notorious Answer

Agency Recruiter

I make approximately 20% more base than my coworkers based on my previous experience. I don't think any of them are aware, but we all have the same quota and I feel weird knowing I have a higher salary when I'm not the top earner (currently). I also think my manager has higher expectations for me because of this, which is not something I have a problem with, but still slightly strange.

IzzyWinning

Tycoon

Enterprise Account Executive

Yes, exactly. He should have higher expectations from you because of your experience and this should match your comp and quota.

BigCheese

Notorious Answer

Agency Recruiter

You're right. I wish I had a higher quota because on paper, I'm held to the same expectations as my colleagues but I know I'm not. It's just an awkward scenario.

IzzyWinning

Tycoon

Enterprise Account Executive

Sorry you're experiencing that.

SADNESSLieutenant

Politicker

Officer of ♥️

Yeah same here, it honestly almost makes you wanna leave

curiouspuppy

BDR

I probably have a higher base than the rest of SDRs, not even based on experience but only because I negotiated...

But I also heard some others have negotiated more variable pay, which I haven't.

Although I'm not the most money-driven SDRs, everyday it makes me think when and how much I should negotiate my salary, which doesn't really give me peace of mind...

p.s. we sell different products and have different quota so really hard to define what's fair, but our process and effort/time into the role should be similar.

LordBusiness

Politicker

Chief Revenue Officer

Different perspective here than most, but hear me out.

Base salary compensation isn't (and shouldn't be) directly connected to target. What most sellers forget in this equation is the COST element of building a team. If I hire sales rep X, with one year of experience and no "rolodex" for $40k base, and sales rep Y, with 5 years of experience with some potential clients for $60k, is it a safe assumption that its going to take me significantly LESS time, resources (training, management, onboarding, etc.) and budget, to get sales rep Y to the shared target both X and Y have - ABSOLUTELY. Also, take into account attrition for sales reps like "X" is significantly higher than with reps like Sales Rep Y, so again my recruiting costs are higher. Taking it a step further, the math will show you that on average more experienced reps usually don't need to discount as much as junior reps to get deals closed, factor that in and what do you know -- MORE COST. There are obviously exceptions to the rule (new talent who over performs) - but sales orgs at scale aren't built for the exceptions to the rule, they are built for the rule.

There are about a million factors that come into play when compensation is outlined during the hiring process, just like probably everyone in this forum who's sold a "bad deal" because they had to, every leader at some point makes a "bad hire" where they probably have a bit too much. Every leader tries for black and white consistency across their teams' compensation, but the reality of it is that a world or grey.

So I challenge you all as sellers to challenge your leaders on the WHY. Instead of being pissed off about another rep making more than you, schedule up some time to understand the why behind that decision. You may not like the answer, but you may learn a bit about the next phase of your career (if you are looking to lead). Worst case scenario, you'll be able to quickly identify if the leader you are working for is one you should continue to stay with, or whether its time to bail.

ARRisLife

Politicker

Account Executive

This is really insightful @LordBusiness

Thanks for sharing your perspective from a CRO's eyes

BluebirddayCO

Good Citizen

Senior Sales Executive

I really like this perspective and it shows leadership your personal interest and compass toward understanding the process and the WHY. We do sit around and bitch more than we should sometimes about inequality but sometimes there is a reason (valid or invalid) and then we need to figure out if we align with that culture and leadership style or not.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

Happens everywhere. I've been on both sides of it. Not comping people properly is a great way to lose employees. That being said, I think there are very strong arguments for people with lots of experience/success making more than unpolished newbies.

IzzyWinning

Tycoon

Enterprise Account Executive

Agreed but then those newbies should have a lower quota.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

I'm not sure that I agree with that. It's not all that different from rookie contracts in sports. You're controlling costs because you gotta see what that person can do. Now, when that person proves themselves, people should get pay bumps. Way too many companies underpay reps and they eventually leave, which is just asinine. Reps shouldn't be expected to take a hometown discount as they show their worth.

Mind you, maybe we should all have lower quotas :)

IzzyWinning

Tycoon

Enterprise Account Executive

Right, except being a rookie pro baseball player doesn't prevent someone from hitting 20 home runs while a less experienced rep might not have the capability of getting to the same number fas someone who's been doing it for much longer.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

I definitely see where you're coming from. I think you and I just are looking at those two different ways. You're making sure that the less experienced reps don't get underpaid (I was one of those guys). I, mirroring that, want to make sure more junior folks being compensated "fairly" doesn't prevent more experienced reps from getting the compensation they deserve.

IzzyWinning

Tycoon

Enterprise Account Executive

I actually want all of the same things that you do. But compensating less experienced people fairly while compensation more experienced reps with what they deserve inherently means they aren't on a level playing field, doesn't it?

SADNESSLieutenant

Politicker

Officer of ♥️

I see what you are saying here @IzzyWinning , essentially, if the base is the same, regardless of experience, and quota expectations are different, the experience of the more experienced rep should, in theory, quickly compensate for his 'experience' ie 60k base - 90-100 OTE with different quota expectations so one rep takes home 70k and the latter 110k

While still allowing for the less experienced rep to prove himself and hit that higher number

DadFather

Politicker

Enterprise Account Executive

Feel like this happens everywhere. It can be an incentive for lower paid (less experienced) reps to perform in order to make more or to keep good/tenured reps around. Being new to the field, i wouldn’t expect to be paid the exact same as my team member with 15 years experience who worked up from where i am starting.

But, it’s frustrating as hell when new employees with similar experience get brought in on a higher base. I have even had to train them, take calls for them, close - all while they are getting paid more. Now that side of it is BS

PhlipOut

Politicker

Account Executive

all the time. less or more. Salaries are negotiated based on your interview process and experience. Also territories are never equal so I don't sweat the base salary discrepancies.. Quotas usually are in the same ballpark, but sometimes a bit different based on "seniority"

figure it our and negotiate accordingly

IzzyWinning

Tycoon

Enterprise Account Executive

This is definitely how my line of thinking USED to look. But you're preaching to the converted now.

SADNESSLieutenant

Politicker

Officer of ♥️

totally agree, your interview seals everything

Selichimorpha

Celebrated Contributor

Growth Executive

Try making less, and being responsible for more. It's the quickest way for a company to lose good talent.

IzzyWinning

Tycoon

Enterprise Account Executive

Yes, yes, yes, yes, yes. Invest in your people and treat them fairly with goals and comp commensurate with experience. AMEN.

BCD

Politicker

BDR

♻️

Chep

WR Officer

Bitcoin Adoption Specialist

This is why it "pays" to be friends with your coworkers and discuss things honestly and openly... unless you are the one making more than everyone else🤣

UnderQuota

Praised Answer

Digital Sales Manager

Yes, and even our comp are different. however we are a global team a nobody knows the salary of each other. it only depends on how you negotiated at first. Sometime the difference were huge, arounds 40%

CadenceCombat

Tycoon

Account Executive

Yes. I’ve experienced this first hand.

Haast

Notorious Answer

Account Executive

This is typical among internal vs professional hires on the same team. They dont always end up assigning higher quotas to pro hires after their ramp even though they typically hire them at increased pay bands then people who were promoted internally.

IzzyWinning

Tycoon

Enterprise Account Executive

I totally understand that it happens and it happened to me, specifically. I'm just curious as to how people feel about it. I never really regarded it as strange or even wrong, but the more I think about it the more I'm against it.

Haast

Notorious Answer

Account Executive

I certainly don't love it, especially as with every company ive worked at the internal hires tend to perform better quicker then the pro hires.

GetAHobby

Arsonist

RVP Sales

I've been on both sides of it, and I think either way it creates some toxicity. Currently I know I make more in base but that was how I negotiated on hire. Before I went through an acquisition that the team we merged with a far higher comp package and for me I actually carried almost double the quota based on my territory. That ultimately was the biggest factor into me leaving that company.

IzzyWinning

Tycoon

Enterprise Account Executive

I suspect I may know the company of which you refer.

Smithy

Politicker

Director of Sales

This kind of thing is rife and only leads to problems further down the line as people talk or hear whispers.

If you have a higher salary, then you should have a higher quota, in relation to the salary difference of course.

IzzyWinning

Tycoon

Enterprise Account Executive

Amen.

Captain_Q

Arsonist

Sr. Account Executive

It comes down to experience and how well you negotiate when you are offered the job. If you're making more than your coworkers, that's not on you. This is also why I NEVER discuss my salary with anyone on my team.

IzzyWinning

Tycoon

Enterprise Account Executive

Honestly, though, that's what employers want. You not discussing your salary with anyone puts them in the driver's seat for negotiations with other reps, especially during internal promotions. We preach transparency with our prospects, we should do the same.

Captain_Q

Arsonist

Sr. Account Executive

I guess I hadn't thought about internal negotiations. So, let's say that someone within your company is applying for a role on your team and comes to you for some insight. You'd feel comfortable telling them what your base is, even if you don't think they'll get that? What happens when that person goes to management and says "well @IzzyWinning makes this much and that's what I should get?" You've now created a rift between you and management.

IzzyWinning

Tycoon

Enterprise Account Executive

This is the exact fear employers are trying to instill. I wouldn’t just pass it out Willy nilly but I’d definitely work with that person to get the most they could and if I trusted them, I’d share mine. I would, of course, have to trust that they wouldn’t say such a thing in a negotiation. But I’m all about lifting each other up however I can.

Captain_Q

Arsonist

Sr. Account Executive

I think you're right, there's a middle ground. I would absolutely help someone prepare the best I could and for sure if I trusted this person I would tell them where I was at. You're also right about the fear from employers, this is also why I HATE the corporate game and jumped ship a long time ago lol

IzzyWinning

Tycoon

Enterprise Account Executive

I appreciate the dialogue, my man! This is how we all grow!

Captain_Q

Arsonist

Sr. Account Executive

For sure, bruh! That's why we're here:)

IzzyWinning

Tycoon

Enterprise Account Executive

Absolutely. Keep it coming!

Savagedoge

Tycoon

Account Executive

Been in places where base and comp vary widely. At one org, that turned into a huge turmoil, nobody was happy. Every single person was answering recruiters phones and were ready to hear what they had to offer. Massive attrition

IzzyWinning

Tycoon

Enterprise Account Executive

I actually think you should always take recruiters calls regardless because who knows what the future will bring. But yeah, I'm with you on the rest.

deviantzen

WR Lieutenant

Consultant

This is why it's been ingrained into us to not talk about compensation and base salaries amongst each other. In reality I happily give out those numbers (but only to other sales people looking at roles I've had in the past).

IzzyWinning

Tycoon

Enterprise Account Executive

Kudos to you. I agree that the stigma in place around discussing comp is specifically to benefit the company and not the rep.

Broncosfan

Politicker

Account Manager

I can double down on this. I had a base salary of roughly half a coworker and was given almost double the quota he was. I ended up leaving the company in large part because of that.

IzzyWinning

Tycoon

Enterprise Account Executive

Such nonsense. Sorry you had to put up with that and hope you're on to greener pastures (see what I did there, with the horse/Bronco reference?).

butt

Good Citizen

Sr. Director, Business Development

One thing I haven't seen come up yet in this thread is the market the seller lives in. I've run sales teams with remote folks across the US and we had a wide range of base salaries on offer for new hires based on experience and location.

IzzyWinning

Tycoon

Enterprise Account Executive

Yah, I’m not really factoring that in. Let’s assume that’s equal.

ThisCouldHaveBeenAnEmail

Advertising Sales Consultant

I’ve been at my job 5 years (title has changed a few times with acquisitions) and make less than people hired in to my role recently. I’m in the process of talking to HR because my base pay back then with that role is different then what it is today with current role so even with 5 years of yrly increases based on merit and performance I am equal to or still less than someone who’s had the job for a year or less. I should have the same competitive base and then my merit increases on top of that. 5 years in the role shouldn’t get me just to where people getting hired at in today’s world.

IzzyWinning

Tycoon

Enterprise Account Executive

Get after it!

ThisCouldHaveBeenAnEmail

Advertising Sales Consultant

Thanks! I’m sick of how my company treats their employees and being privately held, they can do whatever they want and if you don’t like it, quit. I have never had anything come out of going to HR but doesn’t mean I’m not gonna make my issue known

SaasyS

Major Account Executive

Yes, I think this is more present at growth stage companies and then they try evening things out as they get larger. But the problem is that legacy folks will always get paid less because it's harder to justify a massive % increase in base vs. a strong external candidate who negotiates well. I recently interview at a company where they DO NOT NEGOTIATE, which I kind of like.

IzzyWinning

Tycoon

Enterprise Account Executive

How did they communicate that policy to you?

SaasyS

Major Account Executive

Early on I was speaking with another AE and they just casually brought it up. It was confirmed by the hiring director. They literally said ‘you may come to the awkward moment of trying to negotiate with the VP but know that it won’t happen- it didn’t for either of us.’

IzzyWinning

Tycoon

Enterprise Account Executive

Fair. That said, I was once told something similar and also told that I wouldn’t get my desired OTE and I totally negotiated and totally got it. I feel like if you don’t ask for more money, you’re not doing your job. Part of being in this life is not being afraid to talk $$$.

SaasyS

Major Account Executive

This is exactly what I thought! I haven’t got to that meeting yet and I at least want to ask because I feel like it’s bait. At least their OTE would be a 20% increase from my current role but still!

IzzyWinning

Tycoon

Enterprise Account Executive

Yah. I would say go for it and ask for more. It won’t stop you from getting the job. Worst case is you’ll get a no to the additional money but chances are if they like you enough, you actually get it.

DataIsTheNewOil

Good Citizen

Sr Mgr, Mid-Market Sales

I believe this happens at companies of all sizes. I work for a large publicly-traded company and we have decent discrepancies when it comes to OTE for AE's on the same team, with the same quota.

SalesPharaoh

Big Shot

Senior Account Executive

Oh yea a colleague learnt he was not taking the same base he left right away. Like he is on his leave until he joins the new company.

Lucy710

Politicker

Channel Account Manager

This is a huge problem at my company, where they hired reps as "field reps" but switched them to inside sales permanently (not just for the pandemic) . Problem is that they keep their higher field pay, their car allowance, and their company cell phone - while the inside team that they merged with get paid less. The inside team is based in a lower income region, versus the former field reps who are based in higher cost of living areas.

IzzyWinning

Tycoon

Enterprise Account Executive

That's pretty frustrating!

KeepItReal

Good Citizen

Senior Client Partner

Yes, it happens pretty often. I used to work for Israeli forex trading companies and it’s a very common case when someone has bigger or smaller base salary. It really depends how good you can negotiate your base. Never be afraid to ask things, including money. Couple things that I have learned working with Israelis is that you always have to find a way how to ask for money and it doesn’t matter if it’s your boss or your client.

TheLoneGun

Opinionated

Extremely Rad Product Offloading Specialist

Been on both sides; first sales job I destroyed everyone and was payed way less in salary. I mentioned it to my dickhead of a big boss and he said "I'm not paying you more, you already make more total than everyone including the managers" .

If you're paid more, than don't feel bad you bring a lot of experience most likely. But share that experience, if you're are not blowing out quota, then find other ways of making their investment a wise one. I personally hired a very experienced guy in this manner with the idea he would become a sales manager in short order, you never know the full scheme of the plan behind this action either.

MardukOfSales

Good Citizen

District Manager

I have, it was because of geography. I was in Seattle and the rest of my team was in Eastern WA, Idaho and Montana.

redfed92

Praised Answer

Senior AE

Yep, made 10k more than a female colleague. Helped her put together a business case to point out the ridiculous discrepancy. Led to the whole team getting a pay review and all of us levelled up and given pay rises. I was also paid 5k less base than someone on my team with a smaller quota (external hire who negotiated well) Still shocking it was like that initially...

SonofEdward52

Account Executive

I’m in a situation where I climbed the ranks internally from BDR -> AE and have recently found out that I’ve taken a significant “hometown discount” in comparison to new AEs that have come aboard. It is incredibly frustrating being on this side of the fence when you’d think that your understanding of the product/company dynamic would be of more value vs someone starting from scratch. I do understand that sometimes the company has to do this to attract talent but it is frustrating when they claim everyone is on a level playing field comp wise, expecting us not to share with each other. My 2 cents, for what it’s worth.

ARRisLife

Politicker

Account Executive

@SonofEdward52 Preach! I'm in the same boat. I had the same path and been with the org for many years, high performing and overachieving and recently we're in a hiring frenzy. I found out we're paying a decent chuck of change more for these outside hires and I am not taking recruiters calls.

MrMotivation

Politicker

Sales

Interesting. If someone on my team was able to negotiate a higher base, we keep the OTE the same across the team.

CastleIsland

Tycoon

Associate Account Director

This is one of the most interesting posts I've seen on this forum @IzzyWinning How about this scenario? There is a person on my sales team that is a "team lead" and as such has a 30% reduced quota, but still has the same 50/50 and similar comp to others on the team. Doesn't have a roll up number or responsibility for team quota. Thoughts? I think it's politics and bullshit.

IzzyWinning

Tycoon

Enterprise Account Executive

Thanks for this, bud. I've been talking about this a lot recently with former leaders considering I may be moving into a Team Lead role soon (see my other post about this ( https://bravado.co/war-room/posts/have-you-even-been-a-team-lead-or-a-player-coach-for-an-ae-team-what-was-the-experience-like). One of the best leaders I've ever had spoke to me specifically about your point and how comp for the Team Lead role SHOULD reflect the split in time. In this kind of role, they don't have the same amount of time as you to focus on closing since they have to make more time to help others. @LordBusiness made an excellent comment on that post concerning this as well. If this person isn't doing any coaching/training/leading and the numbers are still the same, I get the frustration. But if they have those additional Team Lead responsibilities, I get it.

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IzzyWinning

Have you ever made more in base salary than someone else on your team but you were both responsible for the same quota?

131 comment

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