The War Room

Is it fair for B/SDR's to have their commission tied to revenue pipeline?

So one of the reasons I left my last BDR job was because our CEO tied Revenue Pipeline to the BDR Commission plan. We had to put up $1,000,000 in Revenue Pipeline per Quarter from our opportunities.

As soon as I found out that it would account for 20% of my commission I started applying to other jobs lol. I'm under the mindset that B/SDR's are calling to open the door on new accounts. Plus when I cold call someone, IDK if they're going to buy $5 or $5 Million worth of product.

Curious to hear your thoughts on this one savages.

Is it fair?
Attached poll
*Voting in this poll no longer yields commission.
πŸ’° Compensation
πŸ€·β€β™‚ Poll
Account Executive
I don't know if I necessarily like the idea of that, but I can see why they do it.

It's an incentive to book BETTER meetings, not just more meetings.
WR Officer
up in Fiji, under paddy
I agree with this. If the payout rule is just book x meetings, BDRs are likely to put through any prospect that will agree regardless of how qualified they are. This is a waste of time and resources. If the BDR's money is tied to whether the deal is qualified/ends up closing they're going to put a lot more effort into prospecting and qualifying.
Sales Development Rep
Yeah, this is fair tbh. Personally, I didn't like to waste my AE's time and I would make sure to qualify the prospect. Maybe there's a fair compromise that lists what is required for the meeting to count for the quota instead of throwing out a number.Β 
Senior AE
They don’t control that so I don’t find it fair at all.Β 
SDR Manager
The way our comp is laid out for SDRs is tied to qualified meetings and an extra bonus for revenue.Β 

We don't pay for just throwing anyone who will listen through the door. The rep has to agree that it's "workable". It isn't perfect, but it works for us.Β 

WR Officer
Senior Account Executive
Maybe this is how they are trying to scale quality vs quantity.Β 
WR Officer
Bean Juice Drinker | Sales Savant
I was paid commission on closed deals as a BDR, and that was it (other than my base). If I didn't hunt down good ops then I wasn't getting paid, and it made me MUCH better at my job.
Sales Development Rep
See I don't mind that because it creates an incentive to chase bigger deals. At that last job, I didn't even sniff any closed-won revenue. Kind of hard to be motivated to chase a huge pipeline when you're not gonna get anything significant out of it.Β 
Head of Sales
Revenue is the ONLY metric that matters at the end of the day… if you’re not thinking about it, even at the BDR level, you’re sending shit opps to the AEs. Be happy it was only 20% my friend… others have 50% and don’t get to touch the deal at after handing it off
What major actions would you take on month ends and quarter ends to hit your quota and also increasing the logos of yours from your pipeline?
Should the total value of multi-year SaaS deals count towards your current year quota?
How do clients pay for a multi-year deal?
MinisterOfChaos , Β  akap07 , Β  desperado Β  and 56 people voted
Lots of changes to sales team (massive growth, smaller territory, increase quotas). What do I do?