How does your commission plan work?

Base salaries are easy to compare, but commission on the other hand can be multifaceted. You can have accelerators, decelerates, multi year bonuses etc.

Let's compare commission structures. 
💰 Compensation
14
MCP
Valued Contributor
4
Sales Director
You sell something. You wait for go live. You wait for (and often chase) the customer to pay - they define N30 as 30 business days from the date of go live approval internally, you define it as 30 calendar days from the date of at least one party signing the contract. You realize it doesn’t matter what your definition is, they will always pay against theirs and often find faults in either the delivery or paperwork to buy themselves more time.
Once they finally pay, which you have to track down internally with finance, you wait another 45 days from there so finance can find all the possible deductions based on your plan. They add the final amount (which you’ll never agree with) less taxes (which are somehow MORE than the rate for your base salary) and what you’re left with after 120 days makes you think the jelly of the month club was actually a BETTER deal, especially when you end up somehow owing the company money after they IMMEDIATELY claw back your commissions because someone in imp did such a shitty job that the client exercised the non-standard termination clause they wrote in during contracting that took 3 months to get approved so you could actually close the deal.
You try to cancel the trip you booked in anticipation of the commissions for this deal, but your deposit is non-refundable at this point. You find a new motto in life - FML.
DungeonsNDemos
Big Shot
0
Rolling 20's all day
That sounds like a nightmare :/
MCP
Valued Contributor
0
Sales Director
It’s a hypothetical situation based on a confluence of events I’ve either seen or heard about. Long and short, know how you’re paid, and if it doesn’t happen, move on.
QueenSoopers
Opinionated
3
Account Executive
11% to 100%/quota. 16% from 101-160%/quota. 19% 165%+/quota.
also 11% on quarterly true ups if applicable for up to 13 months after company begins transacting.
from what i understand, it’s a pretty generous compensation structure. i would say we’re paid on the middle-tier salary wise as well.
saler
Valued Contributor
0
AE
What’s your quota and average deal size?
QueenSoopers
Opinionated
0
Account Executive
Quota is 600k and avg deal size is somewhere around 20k
ryan_howard
Politicker
2
Director, Business Development
Contract manufacturing. .01% of revenue (yes a tenth of a % / $10M sale = $10K) but contracts are large and low margin
Sales cycle is super relationship based and very long sales cycle (often over 1 year) but once up and running its not terribly hard to average 30-60K per year in commissions.
Base salary is high to compensate for long cycle (100-200K is common range depending on experience)
TheNegotiator
Arsonist
2
VP of Sales
5% of gross until 80% of quota. 7.5% of gross above 80%. Quota is 3M
.
+ 4000 options with a $0.1 strike price.
ventox35
Politicker
1
Sales Leader
it doesn't work. it disincentivizes me. and it changes all the time. want good salespeople? PAY THEM. 
Upper_Class_SaaS
Politicker
1
Account Executive
% of TCV and it grows at the % of quota attainment
rxtdyn
Good Citizen
0
Sales Executive
Various Non-Enterprise deals set at pre-determined values, ex: $10 for plan A $20 for plan B $40 for plan C
Enterprise Deals passed of and closed:
%1 of deal size (inbound lead)
%2.5 deal size (outbound lead)
DatSaaS
Executive
0
Sales Executive
Measly base salary. Monthly quota. Ramped incentives depending on how much you sell.
DungeonsNDemos
Big Shot
0
Rolling 20's all day
Hardgood sales. Our sales team makes a small 3% flat percentage. No accelerators....

Yes, don't worry I'm looking.
dwightyouignorantsale
Politicker
0
Account Executive
I’m in the fintech space. For each deal there is a spiff component + actuals. The spiff is based on the size of deal, vertical, and partners leveraged. We can make up to $60K on spiffs alone.
The actuals component is 12.5% of net revenue up to 100%, 18.75% up to 150%, and 21% above 150%.
JMSwiggidy
Politicker
0
Enterprise Account Executive
4 levers - ACV1, ACV2, New Logo Bonus, and multi year contract revenue. 50/50 split. Have base commission rate of 9.5%, which is then multiplied by various rates depending if you’re 0–150% to annual quota. Basically ranges from 7.5-45% commission. Each lever has different multipliers, except new logo bonus which is a flat amount. Our quotas are ACV not TCV. So year 2-5 money is paid out less. But we get it all upfront.
JDialz
Politicker
0
Chief Operating Officer
95% of 1% for AUM - pays quarterly. Goal is to onboard $3MM/mo.

45% of 1st contract year's annual premiums for insurance - pays monthly. Small (very) renewal.

Everyone in our group gets an annual 2% bonus if all quarterly goals are met (haven't missed it in a while).
CuriousFox
WR Officer
0
🦊
Does anyone ever really know? 🤷‍♀️😆
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