Hey savages, a question about commissions.

So I'm a BDR and haven't looked into the economics of being an AE, I'm just honing in my 1st year in tech B2B sales and have only worried about my commission structure because yeah I'm a bit selfish. Today I was having a session of shop talk with the guys about the new commission structure our manager wants to implement for us which is based upon the revenue we're helping bring into the company not just $10 to $15 per appointment as it was before.


He told us that we'd be getting 10% of it and that made me question what's the usual percentage rate that Account Execs usually get after a deal closes?


I was going to do a poll but I honestly don't have any fucking idea of what a beginning rate might even look like.

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17
UserNotFound
Politicker
3
Account Executive
I think it depends, based upon B2B Tech segment. I've worked in hardware sales, MSP, and UCaaS- they all differ. I, personally would say that 10% of revenue is pretty amazing for a BDR... I just question if that comes out of the AE's comp? 
FormerStartupJobHopper
Tycoon
3
AE
Doing the math I get about 9% in commish if I hit exactly 100%. So that seems high, but it smells funny to me. 

I've had SDR teams where they try to "incentivize" the SDRs by paying out more on rev attainment and less on qualified meetings. I think it's BS cause what if your rep can't sell for shit or your product sucks? 

I'd be supsicious that they are looking to payout less in SDR commish, not more
NoSuperhero
Politicker
4
BDR LEAD
I have to agree, just by reading all the comments, i smell a bunch of BS
LordBusiness
Politicker
2
Chief Revenue Officer
Sounds like there is a disconnect somewhere, cause 10% for influenced commission is crazy talk. As mentioned above, maybe it’s 10% of AE commission pay out?
NoSuperhero
Politicker
3
BDR LEAD
I completely agree, to me sounded crazy. But I didn't know shit about the subject, so I had to doublecheck with people that do, thank you @LordBusiness 
Diablo
Politicker
2
Sr. AE
10% as a BDR is next to awesome. I know a few companies offer 5-8% to an AE.
Mr.Pickles
Arsonist
0
Sr. Customer Success Manager
Agree - 10% for that role it's great based on seats
SaaSData
Catalyst
2
VP of SaaS & Unit Economics 🏴‍☠️
In SaaS it varies.  If you are selling a disruptive solution and it's a +$50k ARR deal, this will be 10-15%.

Ok here is the way to look at it...

Median Quota is $775k for SaaS Sales Pros...

Most reps are about 50-80% of your quota.

Median commission is about 10%.

75th% is 12% of the ARR.

Renewals is about half that.

Always want to be the one knocking down the big upsell, but make sure you get paid SaaS 10% - 12% money on those deals.

The real money in SaaS is in the Upmarket, selling a disruptive solution that costs +$250k/Annually..

Where you are the seller.  The best to happen is you take it into a new market and you smash the comp plan.  You break it all over the CFO and blow up the CEOs equity.  (key, you always want to blow up the CEOs cash position)... this is a critical factor.

Big checks will do that if you can get the right break.

Watch out for half year comp plans, stay further away but if it's the right place to break the comp plan do it.

-SaaSData
lmk if i can help
Kinonez
Celebrated Contributor
1
War Room Enthusiast
This sounds too good to be true, while nothing is signed off I would assume it's not real. Even if it is, your commission would no longer be in your hands.
cw95
Politicker
1
Sales Development Lead
Depends on the value of what you are selling really? 
thebuckhunter
Politicker
1
AE
As a BDR - comped on the open, comped on the close, plus 2% the ARR. As an AE, between 6-10% of ARR based on how close you are quota.
NoSuperhero
Politicker
0
BDR LEAD
Thank you!!! This info is great too leverage with the cro. Appreciate it bunches
MaximumRaizer
Politicker
1
Sales Manager
Doing the math I get about 9% in commish if I hit exactly 100%. So that seems high, but it smells funny to me. 
Blackwargreymon
Politicker
1
MDR
I've had SDR teams where they try to "incentivize" the SDRs by paying out more on rev attainment and less on qualified meetings.
Clashingsoulsspell
Politicker
1
ISR
Doing the math I get about 9% in commish if I hit exactly 100%. So that seems high, but it smells funny to me. 
dwightyouignorantsale
Politicker
0
Account Executive
I am an enterprise AE and I get 12.5% of ARR. If/when I hit accelerators, then it goes to 18.75% for up to 150% of quota and 21.75% for 150%+ of quota.
FromaBlankPerspective
Politicker
0
District Manager
There's a lot of variables in what an AE's comp can look like (quota-based, flat rate, etc), but overall I would imagine that would be more lucrative?
QueenSoopers
Opinionated
0
Account Executive
10% as a BDR?? hell yes! just make sure to clarify what exactly your responsibilities are/will be and try to get it in writing. for reference, as an SDR i made $56 a meeting (post tax) and now as a SaaS AE i make 11% up to 100% of my quota, then 16% between 101-150%, then 19% 151+
MR.StretchISR
Politicker
0
ISR
I think it depends, based upon B2B Tech segment. I've worked in hardware sales, MSP, and UCaaS- they all differ. I, personally would say that 10% of revenue is pretty amazing for a BDR... I just question if that comes out of the AE's comp?
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