The War Room
Question
Post

Is $220K OTE Reasonable for someone with less than 5 years sales experience?

I just had a junior AE resign for a role with an OTE of $220K with a 50/50 split. This is a young guy, good but not great yet. Needs a lot of coaching, development, etc. Is the market that crazy? Or am I missing something?

πŸ’° Compensation
πŸ‘₯ Hiring
🧒 Sales Management
22
bartonmyfrench
Contributor
Account Executive II
Shit I made my company 400k in ARR and they aren't delving out that kind of cash. They are trying to go public though. I would say look on linkedin at this company called repvue. They actually have a really good breakdown of what companies are paying what salaries and OTE's as well as overall quota attainment. Should provide some industry average guidance!

wo
wolfofgulftobay
Member
+4
VP of Sales & Marketing
Thank you! I will definitely check this out.Β 
ryan_repvue
Good Citizen
+2
founder
Yeah I mean the market is pretty damn competitive right now so we're seeing some figures that are not really in line even with 6 months ago.Β  Generally speaking it starts with the VC dollars pumped in to drive growth.Β 
Salespreuner
Big Shot
+11
Regional Sales Director
Agree with this. Breakup there is pretty realistic and good!
TheRealTommyCallahan
Arsonist
+6
Account Executive
RepVue is legit!
Th
TheBuzzsaw
AE
I left a solid job for the same figure. The company I went to was making a new enterprise team that had 30 named accounts each. About 5 were actually in our target industry (it was ecomm and they had oil & gas companies in my territory).Β 

"Hi, Mr Exxonmobil, have you considered selling your gasoline online?!"Β 

The VP got canned within 2 weeks then my manager demoted himself to AM.Β 

3 months into ramp they dissolved the team and I got let go. Never even had a quota.Β 

$220k is just a number on a piece of paper. Doesn't mean it's real.Β 
ARRisLife
Politicker
+3
Account Executive
@TheBuzzsaw Thats a crazy scenario. I don't mean to insinuate any mistakes on your end but hindsight being 20/20.. what do you think went wrong, do you think you missed some flags in the process or were you sold a bag of spoiled goods? (it happens I know it)

Asking because I'm exploring new orgs and it sounds like you learned the tough way some invaluable lessons, hoping you can share some insight and hopefully I can avoid a similar outcome.

Thanks for sharing!
Th
TheBuzzsaw
AE
I definitely should have asked more questions and asked to talk to an AE on the team. The team was at 11% YTD and most reps had goose eggs.Β 

Also, look more critically at the growth of the company and how they 2x the sales team recently. I got happy ears and just trusted them because they were big and sexy (300 headcount, 50-70 sales).Β 

That said, I'm not sure it totally could've been avoided. Mgmt heavily sold me on the role. Also, the company is doing great and has since raised $100+MM in a drive to go public so it's not like they're a failed company just a shitty place to be an AE.Β 

It's been 2 years and they've done 2 more rounds of layoffs. They just overhire, set insane quotas, then trim. Rinse and repeat. That's their playbook.Β 
Show 1 more replies
softwarebro
Politicker
+4
Director of Sales
I would say that's the top end for that experience (5yrs exp w/ $110k base sounds unbelievable) Did they show you the offer? or is this word of mouth? I think the location would be key info here.Β 
atxsalesguy17
Good Citizen
SMB Account Executive
I think it's just because we haven't had an interview yet (;

On a real note, that is very strange. How is the sales team doing from a quota achievement? That's always the first piece I look into. Yes there could be a huge OTE, but doesn't always mean people are getting anywhere close to it.Β 
wo
wolfofgulftobay
Member
+4
VP of Sales & Marketing
Our sales team or the sales team he is going to? He is doing very well. Since I took over 9 months ago, he has exceed his target every month. I'll be honest he is okay, is managing our 400 existing accounts and mostly taking orders. I think on paper he looks good, but over sold his skills.Β 

goose
Politicker
+12
Sales Executive
The important question is: can someone else do the job or are you going to lose something important if he leaves?
Show 2 more replies
beerisforclosers
Politicker
+8
Account Manager
It's hard to say no when that increase is staring you in the face, but at the same time, how achievable are the new targets? Lots of factors to weigh.
CoorsKing
WR Officer
+12
King of the Coors Knights
Yes, people at my company are making mid 200K 4-6 years out of college
thegrinch
Politicker
+7
SDR
What company are you at @BigMeech?Β 
goose
Politicker
+12
Sales Executive
Important to no what the target is when talking about OTE. Β You could make $220k OTE on commission only if you sell enough.
CastleIsland
Politicker
+8
Associate Account Director
True. Just blow it out and go on accelerators on a 1st year ramp quota and you are making cake.
Hannibal
Opinionated
+3
Senior Account Executive
Yeah it is crazy money but I have heard of even higher numbers - a guy that used to work on my team just left for AWS with some crazy money offer for a relatively Junior Inside Sales job where he is basically making close to $150k base plus 70k in Amazon stockΒ  and another 70k in Commission at plan... living in DC!
Coffeesforclosers
Notable Contributor
+11
Director Sales and Market Development
I mean, that is a nice chunk of change for that level. Depends on the job, location, product, and maybe they had a huge influx of cash. Grass is always greener on the otherside until you jump the fence. He may be back, if you want them to be.Β 
Bell4my
Contributor
+2
AE
Beyond reasonable. They aren't leaving bc of the money though.
Coffeesforclosers
Notable Contributor
+11
Director Sales and Market Development
I hear you there, but did a recruiter fall in his lap and then the money was offered and it was impossible to turn down, or were they actively searching because it wasnt about the money and they were unhappy. I agree with you, but maybe it was just $ in the end.Β 
wo
wolfofgulftobay
Member
+4
VP of Sales & Marketing
I asked, he said he wasn't looking and they found him. Since taking over the team last year I've made a point to work with him, invest in training and development. He seemed honest about it. My fear now is that the market is getting so hot that people are making crazy offers.Β 
Show 1 more replies
wo
wolfofgulftobay
Member
+4
VP of Sales & Marketing
If it isn't money, then what is it? We have invested in training, tools and he has been recognized every month for crushing it. In all honesty, they have sweet gig here. He manages our 400 existing customers (too many for one person and we are working to solve that) but he mostly takes orders. I think he over sold himself. My worry is that the market is too crazy and people have unrealistic expectations based on experience and skills.Β 
Bell4my
Contributor
+2
AE
Culture, management, industry, product, imposter syndrome, ect. It could be one or many things, but I guarantee if that person has less than 5 years of exp and they are walking away from 220k there is an underlying reason.Β 
Show 2 more replies
ARRisLife
Politicker
+3
Account Executive
That's definitely on the top side of the market... Who knows if it's a legit company- I hope for his sake he's not just chasing the biggest paycheck as there's likely a lot of hurdles he's going to face.

That said, from my experience that's not completely unbelievable but not common place.
wo
wolfofgulftobay
Member
+4
VP of Sales & Marketing
Yeah, I tried to coach him from my experience but who can blame a 22-year old guy for taking a 30K+ increase to their base. If he was leaving for a big established company I would feel okay cause he would be getting more/better training. We are a smaller company and he would definitely benefit from a larger organization's training and development.Β 
PhlipOut
Politicker
+8
Account Executive
Sounds like the higher end. Where are y'all based? maybe somewhere like San Fran?

i've seen "junior" reps got to Enterprise roles which have big packages. Some get chewed up because they are not ready and these places have high expectations.

having said that if OTE and Base are your #1 drivers there are jobs out there that pay that much. YOu can work on getting there. may not be an easy ride.

I have peers that earn 30k more than me in base, but change vendor every 12 months..
GeorgeKittle
Acclaimed Answer
+3
Mid Market AE
220 sounds steep. 140-180 sound about right. The market is pretty nuts right now though.Β 
paddy
WR Officer
+11
Account Executive
No lol they're full of it when they tell you that kind of OTE unless you are actually a stone cold killer
KPIMaster
Politicker
+4
Enterprise Account Executive
I mean this is a very loaded question and without the full picture hard to say.Β  Just on OTE alone, assuming the product is something that is competitive and can be sold, seems more than fair.Β Β 
Bgame11
Good Citizen
+2
Business Development Manager (staffing sales)
220k is top top end for that kinda experience. Honestly I’m happy with being given a more attainable ote figure and blowing it out, but maybe this person just wanted a big fake number on paper for ego reasons?
GM
GMoney
Personal Narrative
+1
Mid Market Account Executive
I've seen it enough. He either landed an amazing offer or it was the ol bait and switch and he's walking into a really challenging role/situation. Hard to say
BossBitch
Politicker
+5
Account Executive
My OTE is $200k 50/50 split and I just hit my 3rd year in sales in March. Not trying to brag here but its possible. The difference is I am, and have always been, a top performer, was globally top in my entire company last year. He could have lied in the interview and definitely got that amount of money. Especially in SaaS.Β 
Rigeyyy
Opinionated
+1
Account Executive
Good for the rep! Shooters got to shoot baby!Β 
ShowMeTheMoney
Account Director
Depends on the industry... in Cybersecurity sales, that is absolutely the norm right now for OTE.Β  If the rep is savvy enough during the interview / comp negotiation they can get RSU's on top of that.Β Β 
FeelItInMyPlums
Valued Contributor
+5
Sales Account Executive
I just left a 70/70 role for a 110/110.Β  But my 70/70 was more like 70/90 most years, plus had a work life balance.Β  Was staring 70/30 in the face this year after seeing my number so i jumped ship.Β  Id been there for 7 years, and have been around the industry for pushing 15...

But my 110/110 is looking more like 110/40 at this shitshow i walked into.Β Β 
Th
TheNewyorker
Opinionated
+1
Sales Lord
I know a girl selling cyber security on $300k ote. She’s got 5 years of exp before this
SaaSam
Politicker
+6
Account Executive
In 4 different companies I've only ever seen 2 reps actually hit the OTE advertised by the recruiters.Β 

That's 2 total..

Either I've only been at shitt companies or OTE more often than not is bullshit
jefe
Politicker
+8
Sales Director
OTE is frequently becoming more and more like 'unlimited PTO' - something shiny to dangle and lure reps in
Sniper
Opinionated
+3
Enterprise Account Executive
Without knowing anything about the situation the answer is it is NOT reasonable.Β 

Yet it is obtainable by either rep
goose
Politicker
+12
Sales Executive
Only if you can make 220. Β I’ve seen OTE grossly overstated. Β 
Hambalang
Politicker
+4
Enterprise SDR
AE's at my company make about that much. Our two SMB AE's have less than 5 years of experience too. Their base is more like 80-90k though 110k is actually nuts.
4
Should you base a sales person salary at ?X their target?
Discussion
4
3
What are the salary ranges / commission ranges for a SaaS Sales Manny?
Question
11
16
Average Base for SDR/BDR roles?
Question
26