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RckChlkG33k profile picture

RckChlkG33k

AE (Account Executive)

Big Shot
Politicker
Valued Contributor
+7

OTE:Ratio

My quota was just raised by 25% without a raise in OTE. My commission % is calculated using the OTE/QUOTA percentage, so I lost some ground on the deals I close. 

I'm relatively new to the AE role, so curious: Does this happen frequently?

Management already told me a bunch of stuff about how amazing and/or standard our companesation is compared to the industry norms that I've debunked using repvue, compagauge, and the 2022 Bridge Sales Compensation report, but I'm curious what this looks like for y'all savages. BTW-this raises my ratio to 1:6.87


What is the ratio of your OTE:Quota?

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19 comments

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HVACexpert
Politicker
4
sales engineer
A raise in 25% to quota is a lot. Did they give you reasoning?
RckChlkG33k
Big Shot
1
AE (Account Executive)
They had told me that my first year would be a ramp quota, but I wasn’t aware that the OTE wouldn’t go up with it.
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
So you were paid out a higher % per dollar closed during your ramp period?
RckChlkG33k
Big Shot
0
AE (Account Executive)
Yes. The drop in commission percentage wasn’t something I was expecting.
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
Yeah, unfortunately that’s going to be common. They want you to ramp, offer you an OTE, and give you a lower number for a set period. When they discussed the role with you, did the actual quota come up, and when it would be applied? Not to be mean, but let’s say they offered you OTE 150/150 and had you at 800k for your first year (on ramp) but your second year you move to regular quota of 1.25M - did you expect your OTE to increase? Because that’s not how it works, as you found out. You got eased in generously your first year.

That said, the % does seem a bit off in general, and I am sorry you were taken by surprise. Hopefully you’re uncapped and can make some $$.
RckChlkG33k
Big Shot
0
AE (Account Executive)
Not mean at all. I wasn’t expecting the OTE to go up, but I thought I had a fixed commission percentage. I knew I’d see an increased quota in year two, but the guy who hired me and every other sales person has left, so it’s difficult to say how things have been done historically.

The commission is uncapped, which is good, but I just made the first sale by an AE in at least 5 years at this company. There are red flags all over, and this didn’t do anything to take them down.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Gotcha. Well, you at least now know questions to ask at your next job re ramp, OTE, commission %. Best of luck, sorry it happened.
jefe
Arsonist
3
🍁
@Sunbunny31nailed it by digging into ramp. I totally missed that, but the ramp is to get you to where you need be, skills-wise, without harming your income.

TBH you were fortunate to get that at all - so many companies don't offer this.
RckChlkG33k
Big Shot
3
AE (Account Executive)
I'll be sure to ask more questions moving into my next role. The practice of the commission % changing is one thing, how they chose to handle it is another.

Needless to say I know what I'm looking for in future AE roles.
Maximas
Tycoon
2
Senior Sales Executive
1:4, any similar increase happened before to your quota or just this time only?
RckChlkG33k
Big Shot
0
AE (Account Executive)
They had told me that my first year would be a ramp quota, but I wasn’t aware that the OTE wouldn’t go up with it.

We haven’t had great tenure with sales people here, so I don’t know if it’s happened as no one is around to ask that lasted more than a year.
TennisandSales
Politicker
2
Head Of Sales
hahah love that leadership still thinks we are a bunch of 5 year olds and will believe anything they say!

unfortunately, this is more common than it should be, so its not JUST YOU, but still sucks
ZVRK
Politicker
1
Enterprise Account Executive
Can you the to negotiate a raise in your base? Seems unfair to just raise your quota..
RckChlkG33k
Big Shot
1
AE (Account Executive)
They laughed at me when I asked about that. Needless to say I’m job hunting right now because management seems either incompetent or nefarious or both.
ZVRK
Politicker
1
Enterprise Account Executive
Good luck, you’re definitely better off getting out of there!
Justatitle
Big Shot
1
Account Executive
Great way to churn sales reps
JustGonnaSendIt
Politicker
1
Burn Towns, Get Money
I received a 40% raise in quota this year.

My ratio of overall OTE to quota is 1:15.71 (50/50 split)

Incentive to Quota is 1:31.4 - Which is what really drives the compensation rate per-dollar of sales.

It's honestly ridiculous. My quota has gone up over 250% in the 3 years I've worked here.
RckChlkG33k
Big Shot
1
AE (Account Executive)
That’s freaking nuts
JustGonnaSendIt
Politicker
0
Burn Towns, Get Money
Indeed.

At least the OTE is high enough that it seems worth it. And believe it or not most of the people I work with are actually worth spending time with.

Could be worse - Quota could be high just as high, OTE could suck, and the people could be jerks.

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