Goomba

Director

Hope for a company that considers AEs 150% to goal with 13k MRR closed in a quarter?

We're a company where every part of it appears to be struggling due to revenue shortfalls. The consensus is that sales is failing here and instead of pivoting, management is confused, has no strategy, and lacks awareness.

We had a sales kick off where awards were given out. It's now increasingly worrying to others in the org that can do math that we're not even 1xing a reps salary to their output.

How many companies have you seen this at and for how long before they blow up?

These AEs are about 140k OTE on average.

👑 Sales Strategy

💰 Compensation

🧢 Sales Management

21 comment

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Space_Ghost20

Valued Contributor

Account Executive

I don't think I've seen a company setting quotas so low that they don't even cover their reps' base salaries. I have seen companies that burn cash on R&D to the point that even if they are bringing in a bunch of cash each month/quarter, they are still running out of funds.

Typically, the investors, or the board will step in to stop the bleeding if it's too bad. Or the laws of mathematics will force things to come to an end. What kind of company is this?

Goomba

Opinionated

Director

Series B that has problems similar to a Series A. We got a bunch of funding a few years ago over 100m.
Apparently sales was a touchy topic for the investors at the last meeting. I'm thinking heads will roll by EOQ.

oldcloser

Arsonist

💀

Fly like an eagle

Gyro25

Notorious Answer

Account Executive

"We had a sales kick off where awards were given out. It's now increasingly worrying to others in the org that can do math that we're not even 1xing a reps salary to their output."
Sounds like an overfunded startup trying to play safe for investors.
This is exactly what happened at my last company before 1/3 was axed/ No one was hitting quota and if you knew basic math, you knew this doesn't add up.

Goomba

Opinionated

Director

Would prefer that no one hit quota instead of sales patting themselves on the back and being paid accelerators. I think it's so that sales management can pay themselves $ while they sink us further at this point.

I don't blame the reps, I blame our head of sales. He's known as touting "rep activity" as the problem.

Gyro25

Notorious Answer

Account Executive

Hahaha when revops and sales conspire to hit their accelerators.
All I have to say is that it won't last, we had about a quarter before it all came crashing down. As management, you should definitely try and cover your ass once they start asking for more transparency on what's happening internally. I wish you the best.

Goomba

Opinionated

Director

Thanks, I think my part of the org is solid but I could definitely get caught in the crossfire.

jefe

Arsonist

🍁

poweredbycaffeine

WR Lieutenant

☕️

Can’t hold the team to goals and standard? Run.

Diablo

Politicker

Sr. AE

Time to fish a new company, Tuna!

saaskicker

Celebrated Contributor

Enterprise AE

If the math doesn't add up, it's time to pack up.

CuriousFox

WR Officer

🦊

Awards? Like a trophy or paper certificate? What's the value of said awards?

Goomba

Opinionated

Director

Oh you know, those shitty "glass" ones.

CuriousFox

WR Officer

🦊

I was about to say if it was cash money I'd be pissed. Not that they didn't spend money recklessly here, but it would have made me more angry LOL.

Goomba

Opinionated

Director

😂 I'm already pissed our head of sales is such a poor performer and that our CEO has let it go on so long.

CuriousFox

WR Officer

🦊

Ah. A righteous pissed off 💯

GlenRoss

Politicker

Account Executive

Sounds like goal is around $3k MRR/month/rep? I have seen numbers like this in SMB especially if LTV is pretty high. Annualized this would be bringing in over 400k in ARR so it shouldn’t be that bad as long it’s not all monthly deals that churn out super quick

Sunbunny31

Politicker

Sr Sales Executive 🐰

That's going to sink the company for sure. Sorry.

Kosta_Konfucius

Politicker

Sales Rep

Is it because everyone is a ramp? Thats the only time I saw quota close to OTE

Goomba

Opinionated

Director

Sadly this was one of the top people.

LambyCorn

Arsonist

A mfkn E

what? that doesn't make sense, only if AEs are outsourced to cheaper labor like India, or else they would be burning cash like crazy

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Goomba

Hope for a company that considers AEs 150% to goal with 13k MRR closed in a quarter?

21 comment

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