Offer -- No draws in ramp-up?

I've just received an offer for a new AE role at a SaaS company. There is an expected 6 month ramp up period where I would not hold a quota, and would hold a quota from month 7 onward.

The hiring manager explained that if a rep closes business during the ramp up that they'd be fully commissioned on the contract value.

They have no draw plan, meaning I would be receiving only base salary for 6 months. Is this cause for concern?

Additionally, they are in the process of building their new commission structure for FY22 so I would be agreeing to something pretty blind. Thoughts?

💰 Compensation

👥 Hiring

9 comments

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Diablo

Politicker

Sr. AE

I know many companies give 3 months to ramp up but if you're able to get live before your ramp up period and as far they will commission you for any deals you close is great. Try to amend your doc (adding this commission clause) will help you.

sales_guy69

Good Citizen

Account Executive

It’s a 60/40 split base/OTE so I’m not going to go hungry, but don’t love the idea that I won’t likely hit my OTE until month 7

ColdCallFartBoy

Celebrated Contributor

Business Development Representative

I have faith in you sales guy 69!

Biznasty

Opinionated

Lead Business Development Manager

I wouldn't take it. If you are a good rep, you are going to make them that draw times 10000x on the back end. If a company doesn't give you time to ramp it means they don't give a shit about their reps OR they don't think you deserve to be able to pay your bills unless you produce right away IE they are going to treat you like a piece of sales meat with no emotions or human needs.

Sales is the ultimate partnership and without support it is so so turbulent. Not offering a draw is a clear sign that the company is not ready to partner with a rep until the getting is already good.

ChumpChange

Politicker

Channel Manager

^ This. There's an inherent risk on both ends and that needs to be communicated from the start.

Biznasty

Opinionated

Lead Business Development Manager

Thanks, boo.

dwightyouignorantsale

Politicker

Account Executive

This seems a little sketchy. If they want you to close business right away, but won’t be paying you on it for 6 months, that’s just stealing at that point. On the 2022 comp plans, I understand that many orgs don’t know exactly what that will look like until EOY, but they should be able to give you general guidance at the least. Not sure I would move forward on that one, to be honest.

CuriousFox

WR Officer

🦊

Did you take the job?

Justatitle

Big Shot

Account Executive

It’s pretty typical to not earn commission unless you sell while you ramp. Although it’s a bummer, I’ve never had a draw while ramping in any company I worked for. I have sold while on ramp and been commissioned so it’s feasible.