H
H

Heresjohnny

Area Sales Manager

Personal Narrative
Fire Starter
Contributor

Offered a big OTE but no one is hitting goal

I just got a great offer from what seems to be a solid company but no one is currently hitting quota. Apparently because everyone is 4 months or less into the job as they have expanded sales team. 

Feels like a red flag but OTE is almost double my current OTE. Even if I hit 50% I'll make more. Thoughts? 
🤝 Interviewing/Offer
😋 Job Searching
☁️ Software Tech
21

28 comments

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Pachacuti
Politicker
10
They call me Daddy, Sales Daddy
OTE isn’t worth anything. They could tell You OTE is $1B. They need to provide you a realistic path to getting there.
Diablo
Politicker
6
Sr. AE
Are they currently hitting even 50% of their quota - litmus test to match it with your expectations ?
Heresjohnny
Personal Narrative
3
Area Sales Manager
Good question to ask, I’m getting a written offer this week. But I’m going to ask to speak to one of the sellers again and drill in further about some details i honestly missed. Thanks for advice.
Diablo
Politicker
3
Sr. AE
All the best bud
CuriousFox
WR Officer
6
🦊
And what is the churn rate 👀
ChumpChange
Politicker
3
Channel Manager
^ This. Don't want to be stuck in a churn and burn org.
jefe
Arsonist
6
🍁
Others covered it. Understand the churn rate and actual attainment. Plus consider the base. Might be a good move but there are definitely red flags.
mrosales
Politicker
1
AE
Major red flags.
jefe
Arsonist
2
🍁
They can claim that OTE is whatever they want, so you need to see what's actually possible and realistic.
TennisandSales
Politicker
5
Head Of Sales
its a red flag. Whats the base? OTE is just a made up number most of the time and has NO connection to how good of an opportunity it is.

you can ask how the OTE is calculated, or how the compensation is structured based on OTE.
Sunbunny31
Politicker
4
Sr Sales Executive 🐰
If the base is significantly higher and you can live with 50% attainment, it sounds like a good move.
ChumpChange
Politicker
4
Channel Manager
I would negotiate on the base versus the OTE. OTE can be scammy depending on various factors that you won't know until you're actually onboarded. I would definitely ask how many reps are hitting OTE. Also, the fact that no one at the company who's selling has been there longer than 4 months is an area of concern.
Twenty20
3
Account Executive - MM
I took a job like this recently and I don’t regret it at all because the challenge is amazing, my professional growth is through the roof and the earning potential via the comp plan is bonkers.

I will say though that there is room for improvement in the product, and l am still struggling to find my best path forward re: filling pipeline and advancing deals. When nobody is hitting quota it’s kind of hard to pick up best practices from someone who’s hitting quota. Lol
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
Really interesting experience. Thanks for your in the trenches observation!
ChickenDinner
Politicker
3
Account Executive
I'd be curious what the quota attainment was the previous year before all the new reps, they can have a down year because of ramping up AEs but 2 down years is no bueno
coletrain
Politicker
3
Account Executive
What is actual quota attainment (from someone actually selling), how long does it take to become an "average" rep, why do they appear to be a solid company?
Gasty
Notable Contributor
2
War Room Community Manager
How many are hitting 50% and above? @Heresjohnny
Kosta_Konfucius
Politicker
1
Sales Rep
Where is base at compared to your current role? And is there no ramp up quota? 0 Reps hitting their ramp up is still pretty bad
Heresjohnny
Personal Narrative
2
Area Sales Manager
$35k higher than current base and upside is 3x higher. Basically going $150 OTE to $250 OTE.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
That's a nice bump in base pay, particularly if you're already budgeting off your current base.
Maximas
Tycoon
1
Senior Sales Executive
I guess if 50% or more of the headcount can not do it, so the problem then isn't with the employees it's with the target.
mastersfan
Opinionated
1
Account Executive
If a company doesn’t have compelling data on appointment setting, close ratios, etc their OTE is totally made up.
Iamsomebody11
1
Sales Manager
It could be real or it could be made up. As a sales person it is our job to ask more qualifying questions. Here are some questions you can ask.

1. Ask to see a sample of the pipeline.
2.Ask how many inbounds leads has marketing generated.
3.Ask if the top sales reps have cold calling and email scripts that convert to meetings.
4.How many meetings have been held this quarter.
5.Did the previous sales people (before the new hires) hit target. If not ask why?
6.How many deals have been closed. Avg. deal size. What is the average sales cycle.

I hope some of these questions help you make a decision.
Arzola
Valued Contributor
1
Business administration
If you already earn more when you reach 50%, it does not seem like a bad option to me, apart from the fact that you will have a personal challenge to reach 100%
CashMoneyyy
Catalyst
1
Account Executive
Cyber?
LABillyboy
0
Vice President
Key word here is "Target". Always ask what the target is when interviewing for any job with commission as a significant part of your compensation. Always ask what percentage of current employees in this position are exceeding the target. Always ask what the expectation is to ramp up to meeting the target. I have heard some really squirrely responses to these key questions from recruiters and hiring managers. Lastly, if you have experience, you should know what a reasonable target is in your industry with the product or service being sold. If it sounds too good to be true, it isn't.
ThatNewAE
Big Shot
0
Account Executive - Mid enterprise
How would I get the OTE if I am not hitting the goal ?

Did that mistake once, never doing it again.
FeelItInMyPlums
Valued Contributor
0
Sales Account Executive
Are the reps actually hitting 50%? I made the same move for an almost 2x base. 2/12 reps are over 50%....9/12 are under 20%....

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