kellesdad

Service Sales Rep

Major Comp Change

About two years into HVAC sales with a OEM. There's been a fundamental comp change from base + commission to a hybrid base + quota attainment(factored 60 +40) plus kickers and additives. historically, AEs could make their own dreams come true making upwards of 400-800k with right customers and deals sizes. Now it seems this new plan is intended to take that ability away. Seems like the industry is doing this a lot. thoughts?

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✍️ Sales advice

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Beans

Big Shot

Enterprise Account Executive

@HVACexpert - your ears should be burning.

HVACexpert

Politicker

sales engineer

Thanks Beans, we chatted offline already actually

HVACexpert

Politicker

sales engineer

Yeah in my last role, some guys who called on hospitals and schools were making BANK.

If you want to make real money now you have to private MRs or distributors now. The benefits aren’t as good, but there is no cap on commission and some roles are even 100% commission. Lot of guys can make it to that $300-400k range depending on jobs , equipment type, etc.

jefe

Arsonist

🍁

I couldn't do 100% commission, even before I had a family and mortgage.
Glad you connected with him, and shared here. Your insight into this is valuable.

HVACexpert

Politicker

sales engineer

So they get it around this issue by having what’s called a “draw” which basically is an amount you get paid every month regardless of what is earned. But in the end you don’t get paid more than you earn

Example: let’s do your draw is $100 (for math sake not actual)

So month one you make $95
You still take home $100

Month two you make $110
But you owe $5 from previous month
So you take home $105

jefe

Arsonist

🍁

I'm familiar with a draw, but still wouldn't do it. I like a little more stability.
Thanks for the breakdown though! I'm sure many around here don't know about this.

GDO

Politicker

BDM

Damn that’s some big bucks

HVACexpert

Politicker

sales engineer

That’s top end on good years. But most guys should make 6 figures. Again, depends on company, product, customers, even region.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Companies love nuking comp plans.

BTQ

Politicker

Fractional SDR

Bro do I need to get into HVAC this is insane.
Update: my bad I neglected to acknowledge the comp plans are getting rekt.

HVACexpert

Politicker

sales engineer

The top guys do well for themselves

Kosta_Konfucius

Politicker

ERP Sales

Whenever there is a comp plan change 99% it hurts the rep

Sunbunny31

Arsonist

Sr Sales Executive 🐰

You speak truth.

ChumpChange

Politicker

Channel Manager

400-800K payouts tell me that the comp paid on points on the deal which is GENEROUS. I can see them lowering the ceiling to keep it in line with industry pay.

Revenue_Rambo

Politicker

Bad MFer

If there was a change in executive leadership before this switch someone got a little envious of the sales team pay

ThatNewAE

Big Shot

Account Executive - Mid enterprise

Yep. My soul burned looking at those numbers.

Coffeesforclosers

Notable Contributor

Director Sales and Market Development

Comp change never benefits the Rep, bummer. But man i need to get into HVAC