techp

Account Executive

Personal Narrative

Lowered commission / higher quota

Howdy,

Just hit a year as a team lead SDR at a Series B startup. In that year, I’ve been the top SDR / set records in quality meetings / helped train the new SDRs.. pretty much set the bar high.

Before Q2 I got a increase in base salary (nothing substantial - 3%) and they raised quota.

After getting back my commission for the quarter, I noticed that since they raised quota, it put my commission per meeting about $125 less. Basically keeping me from $400 in extra commissions.

I wasn’t told this was be an affect of increased quota and spoke with my manager and co-founder about it.

They had the same answers - as we increase efficiencies blah blah, this will happen. But we haven’t gotten any new tech stack, marketing put out a few webinars but that’s it.

My question is, what’re your thoughts when a startup makes commission lower and quota higher?

Is this normal?

Would you be upset?

I am going to be promoted to AE in a month so I’m not making a fuss but wanted to get a second opinion.

🍾 Commission

☁️ Software Tech

15

28 comments

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Sunbunny31

Politicker

12

Sr Sales Executive 🐰

If your OTE remains relatively the same and your quota goes up, then yes, the % you make on closed business will be less. They want more from you re performance, but aren't rewarding you at the same rate. Sadly, this is common.

techp

Opinionated

2

Account Executive

Common and unfair. Would you make a fuss or just stay quiet for AE promo.

UrAssIsSaaS

Arsonist

4

SaaS Eater

Yorue not going to win this argument. I sit on the other side of this table and had an AE ask for a higher % on CW deals today and I told him no and can easily justify it.

There are other ways you can go about increasing comp but this argument isnt worth it.

techp

Opinionated

2

Account Executive

That’s what I’m thinking. Embrace the suck, get the promotion in a month where the real money begins

Sunbunny31

Politicker

2

Sr Sales Executive 🐰

Exactly - feel free to rant about it to us now.

Glad you are getting the promotion and congratulations!

Pachacuti

Politicker

6

They call me Daddy, Sales Daddy

It’s normal and it’s f’d up. And since you’re getting promoted, I wouldn’t dwell on it too much other than knowing the SDRs who will be supporting you as an AE are dealing it.

techp

Opinionated

1

Account Executive

Good advice, thank you!

SaaSam

Politicker

3

Account Executive

There should always be a commensurate increase in salary when your quota is increased. IMO

Moving the goalposts isn't a bad thing so long as they move in the same direction on both sides of the field.

Sunbunny31

Politicker

2

Sr Sales Executive 🐰

Unfortunately, unlike in football, the chain gang isn't tethered.

SaaSam

Politicker

1

Account Executive

The chain gang. Forgot all about that. Ours was always made up of crippled players on crutches.

techp

Opinionated

2

Account Executive

Lol why can’t I be on the field yet coach?

Kosta_Konfucius

Politicker

2

Sales Rep

Something is wrong with you if you dont get upset with an increase quota, but it is the norm when in the role. I would argue for more than 3% raise especially now your commission per meeting went down.

Is your OTE the same % breakdown down?

techp

Opinionated

1

Account Executive

OTE moved up only $217. OTE is 40% of base salary.

Kosta_Konfucius

Politicker

2

Sales Rep

If you OTE stayed about the same and quota went way up, unfortunately the take home per deal drops a lot down.

UrAssIsSaaS

Arsonist

2

SaaS Eater

What % did your quota increase?

techp

Opinionated

1

Account Executive

Went from 12 to 15 deals per quarter

CuriousFox

WR Officer

2

🦊

Get your AE promotion and see how much money you make before you make a big change. 😎

techp

Opinionated

0

Account Executive

Copy that!

antiASKHOLE

Tycoon

2

Bravado's Resident Asshole

Although it is normal, I don't agree with it. It's almost like punishing your top talent and rewarding those that barely do anything.

techp

Opinionated

0

Account Executive

It doesn’t incentivize myself. Especially with inflation.

TennisandSales

Politicker

1

Head Of Sales

yeah this is common. i would be upset that they didnt tell you. its also not unreasonable to think an early stage start up like this is trying to find the balance they need to make all the numbers work.
its kinda par for the course in that stage.

im glad you are getting promoted to AE soon, hopefully that will really increase your OTE potential

techp

Opinionated

1

Account Executive

Thank you! It’s helpful to hear it’s not uncommon

GDO

Politicker

0

BDM

It’s common and it sucks

techp

Opinionated

0

Account Executive

Sure does

KendallRoy

Politicker

0

AM

Congrats on the promotion. This happened at my current company. Our cut of services sold was reduced by about 70%. Product cut remained the same but quota increased 40% YoY. My region’s team has had a 25% churn rate in 4 months. Can’t imagine why.

Gasty

Notable Contributor

0

War Room Community Manager

blame the system :/

Unforgivable89043

Opinionated

0

Enterprise Account Manager

I feel you, man. The same thing happened to me last year, where my company gave me a 5% raise on my base but almost doubled my expansion and renewal quotas ($800k - $1.6 million combined).

I did not win that battle….

revenuegenerator

Praised Answer

0

Sales Management

If you're 100% you're going to be promoted in the quarter, just put your head down, grind and move on.

Btw I'd be more worried/curious about the 3% salary raise. 3%????? You need to making 200/300K base for that to be anything meaningful. If you're an SDR, I can't imagine you're near that. This would strike me as a red flag that this company philosophically doesn't know how or want to comp sales ppl at market. IMO they may try to nickel and dime you for the rest of your career there.

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