Let’s talk comp


I'll give you three scenarios. Let's say I'm hiring to fill an Enterprise AE role (2M quota with 25k average deal size) for a growth Saas company. 

Give me your fair market value on what YOU think their comp plan should look like

Persona One: Recent grad with advanced degree + 2-3 years of sales experience. 1 year of Saas experience. 

Persona Two: 5-7 years of sales experience, no Saas experience, no leadership experience

Persona Three: 10+ total years of experience, 1-2 years of sales experience, 5-7 years of business development experience, no leadership experience 

Obviously there's several nuances and factors involved, I just want to see where your heads are at. 
🕧 age-related
🍾 Commission
💰 Compensation
12
Pachacuti
Politicker
9
They call me Daddy, Sales Daddy
First off, what does SaaS experience have to do with anything? I can teach someone SaaS, just like I can teach them how just about any other widget works.
What I care about usually isn’t on a resume - work ethic, perseverance, grit, drive.
Finally, what value does the person bring to my organization? How much do I need to invest in the person to ramp them up? How much will they bring to me?
Those are the things I think about when compensation is talked about.
jefe
Arsonist
1
🍁
This is what you need to consider.
WolfofSiliconValley
Catalyst
0
Sales Enablement Manager
This is really good feedback
Kosta_Konfucius
Politicker
2
Sales Rep
Curious the context behind this, are you a hiring manager and trying to find comp for these 3 candidates? Are they going to be in the same role?

There are so many variables in play its hard to say any number. Especially not knowing the role they are in Ent AE, compared to short cycle sales cycle SMB. That can be a 50k+ gap in base alone.
WolfofSiliconValley
Catalyst
0
Sales Enablement Manager
@Kosta_Konfucius updated for more context
Coastal_crusher
Politicker
2
Sales Director
The factors you are looking are a bit all over the place so I'd say your market research may benefit from checking out what everyone else is paying. Thats the easiest benchmark IMO for hiring managers or reps. Check our Repvue for a good comparison

Off-topic but I really hate the 'you don't have enough years' of experience factor - like yeah I know that but what if I told you your 10-year person of choice has hit annual quota maybe twice
WolfofSiliconValley
Catalyst
2
Sales Enablement Manager
Good feedback! Would you all take someone with tenure or quota attainment success?
Diablo
Politicker
1
Sr. AE
High industry, position, location are you hiring for.
WolfofSiliconValley
Catalyst
0
Sales Enablement Manager
Updated for more context
BlueJays2591
Politicker
1
Federal Business Dev Director
Persona 2 sounds like a good sweet spot. Is leadership experience something you look for usually?
Maximas
Tycoon
1
Senior Sales Executive
I would go with persona 2.
WhoDey
Opinionated
1
VP of Sales
Persona 1: $100K base, $80K comms at 100%
Persona 2: $100K base, $80K comms at 100%
Persona 3: $100K base, $80K comms at 100%
slaydie
Big Shot
0
Account Executive
I mean lots of other factors to consider but Ill play your game and lean towards Persona 2. All could be great candidates though
ventox35
Politicker
0
Sales Leader
wish i had an apple device so i could DM you..boy do i have some thoughts!
TennisandSales
Politicker
0
Head Of Sales
i just dont understand how an ENT product. can only cost $25k haha
VFG
Good Citizen
0
SDR
What exactly do you mean by enterprise? $25k average deal size isn’t even Mid-Market.
Mendizo
Opinionated
0
Sr. Director
I'm curious, if I'm reading this right, it's the same role, but you are thinking of different comp based on the candidate? If they're achieving the same result, shouldn't they be paid the same?

To your 2M quota and 25k average deal size, that seems like a highly transactional, SMB/SMC type of role. That's 80 deals they need to close each year, which at 33% close rate means 240+ real opportunities they need to handle each year. That is not a light job.

To answer your question, I would say to attract the right candidate, you're going to need $250k+ OTE, at least 50% base because there's going to be a lot of build (or give them a quarter or two of commission coverage).

I'm not sure a more experienced seller is going to want to do this type of high-volume transactional selling (at least, I wouldn't), so this level of OTE could get you a stellar up-and-coming individual who will put in the time and effort.
3

Let's talk comp

Question
6
11

Is it normal to get a comp plan mid-quarter after being told they overhauled the comp plan?

Question
14
Is it normal to get a comp plan mid-quarter after being told they overhauled the comp
43% Yes
57% No
76 people voted
9

CEO wants me to present Comp Plan options

Advice
11