oldcloser

💀

OTE vs QUOTA Pulse check

I'm currently in an internal war.

Where I come from, OTE at 100.00% of quota should level out at somewhere between 8% - 12% across SaaS, ProServ, IT services, and straight Marketing. This is without bonuses or accelerators, just commission off of straight top-line revenue, and excludes insanely high value sales like 1B defense contracts. Obviously, there are other nit-pick exceptions.

Those deals aside, and for the rest of us mortals, does a $150k/$300k comp plan point somewhere near a $3M quota for a 5 year old company with 5 years of 20%+ growth or have I missed a shift?

💰 Compensation

52 comments

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poweredbycaffeine

WR Lieutenant

☕️

I just signed a contract for a $150/$300 OTE at a $2M quota.

Anything above $2M is accelerated and above OTE.

jefe

Arsonist

🍁

Congrats on the new gig! Seems like you landed pretty quickly.

poweredbycaffeine

WR Lieutenant

☕️

Keep your network warm. Had a call 30-minutes post layoff. Took a couple weeks to have other meetings and contract negotiations. Signed today and we start Monday.

jefe

Arsonist

🍁

Well done, PBC. And a good reminder

Sunbunny31

Politicker

Sr Sales Executive 🐰

Excellent reminder.

TheQueenofDiamonds

Big Shot

Account Executive

congrats!!!!! and yes 2mil in attainment should bring around $150 - $200 commission minimum!!

poweredbycaffeine

WR Lieutenant

☕️

All depends on the business model and margins, but agreed -- $150/$150 makes sense for this role.

oldcloser

Arsonist

💀

I'd give you $400k for it.. but that's just me

poweredbycaffeine

WR Lieutenant

☕️

…want my SWIFT number?

medhardwaredr

Politicker

Director of Sales NA

Congrats caffeine that is amazing news!

oldcloser

Arsonist

💀

Yeah buddy-O. Congrats!!!

Sunbunny31

Politicker

Sr Sales Executive 🐰

Great news! Congratulations on that gig.

Sunbunny31

Politicker

Sr Sales Executive 🐰

FWIW, I'll give a high level overview of where I'm at. No comp on services, but also no services quota.
At the high end of your range for OTE, Ent SaaS. Quota of $1,250,000 (not $3M). OTE is based on ARR.

jefe

Arsonist

🍁

This makes sense. In my experience, base doesn't come into play when calculating what percentage of a quota one's OTE is - that's all variable.

oldcloser

Arsonist

💀

ok, I"m not losing my mind then.

jefe

Arsonist

🍁

Well, that remains to be seen, but you're okay here.

I think your scenario makes sense if you're paying a commission of 5%. If you're at 10%, then that $150K variable should be off of a $1.5M quota.

oldcloser

Arsonist

💀

I've got a CFO with his head way up his own ass. In his scenario, a $3M quota should have an $80k variable. I doth protest.

jefe

Arsonist

🍁

That is all kinds of messed up. No one will accept the offer, let alone stick around.

Revenue_Rambo

Politicker

Director, Revenue Enablement

In what world has he personally overseen a $3M quota paying out $80k?!?

Sounds more like figures to make some BS board projection work because he increased his own salary.

oldcloser

Arsonist

💀

Precisely what I’m thinking

jefe

Arsonist

🍁

"I've come up with a revolutionary new way to lower CAC!"

oldcloser

Arsonist

💀

Yeah- fucking ground breaking!

jefe

Arsonist

🍁

🤦‍♂️🙄

Sunbunny31

Politicker

Sr Sales Executive 🐰

Unless you're selling gold toilets to the Pentagon and you're just fulfilling POs that float in the door, no.

oldcloser

Arsonist

💀

Even slightly used ones? Reminds me of an old negotiation rebuttal when there's an objection to premium pricing.

"We're selling the premium oats here. You want a discount? We got that pile over yonder that dun already come out of the horse. They're a little cheaper."

unclespacejam

Politicker

ur dad’s brother

Would highly recommend consulting Quotapath’s resources on this subject. They have a couple things that I have used for years now when negotiating my comp yearly. I have no affiliation, just genuinely love what these folks have built:

Quota:OTE Ratio calculator:
https://www.quotapath.com/calculating-ote/

Sales quota planner:
https://www.quotapath.com/sales-compensation-calculator/

ps: AJ Bruno, send the CHEQUE

oldcloser

Arsonist

💀

This is solid AF. Had no idea it existed.

unclespacejam

Politicker

ur dad’s brother

Couldn’t recommend these folks enough. Exceptional team and an exceptional product

oldcloser

Arsonist

💀

Yep. I'd keep that gig as long as I possibly could. Which likely isn't near as long as you will. :)

Sunbunny31

Politicker

Sr Sales Executive 🐰

Let's hope things go well this year!

NoToBANT

Catalyst

Senior Account Executive

Wow y’all getting it a bit rough lol.

I’m on a $1m quota with almost similar OTE. But easy to achieve accelerators

I think $150/$300k against a $3m target is steep as fuck

Buttttt then again I know nothing about your average deal size

oldcloser

Arsonist

💀

I just use that 10% and spread it back over time. We've got a new thing that's going to average 600k ARR when the old thing is just 85k. It's got everyone freaking out... what if they sell too much?!!!! They're gonna make too much!!!!
fuck

Sunbunny31

Politicker

Sr Sales Executive 🐰

🙄

Sunbunny31

Politicker

Sr Sales Executive 🐰

Oh. I didn’t include accelerators or bonuses. Just the straight OTE and quota. Accelerators and bonuses exist as well.

oldcloser

Arsonist

💀

I didn’t even mention that this dude doesn’t believe either are necessary. Absolutely zero understanding of sales brain.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Sales life is all about the accelerators. Companies should want that incentive in place. He really has no idea?

oldcloser

Arsonist

💀

CLO/CFO - Lawyer and a CPA. Dude is all about contracts and cost control. Jealous? I think I broke him a little bit yesterday though. Still chipping at him.

Sunbunny31

Politicker

Sr Sales Executive 🐰

He really should understand what motivates people. Sales people have pretty specific things that attract them to a company and incentivize them to perform. They’re going to be different than what motivates a lawyer or accountant. People management 101. 😁

oldcloser

Arsonist

💀

He clearly never enrolled or attended that one. Do. Not. Like. Him.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Sorry. It’s one thing to be oblivious. It’s another to be unlikeable.

Justatitle

Big Shot

Account Executive

The standard used to be that the rep should make 20% of what they sell so with a 300K OTE then the rep should have ~1.5 Mil quota. considering the war happening against sales a 2M Quota wouldn't be crazy but a 3 M Quota is Uncle Larry's cough medicine crazy.

oldcloser

Arsonist

💀

Way back when… there used to be zero base, a forgivable draw for 6 months worth of ramp- we just called it a guarantee. 10% on repeat, 15% on new.

I made $110k in 1993 on that plan. Did much blow that year also. Things have changed.

TheQueenofDiamonds

Big Shot

Account Executive

exactly!!!!!

oldcloser

Arsonist

💀

Its kind of wild how all over the map some of these answers are. This is why I war room. Keeps me current. Thanks, Queen!

QWhiz

Tycoon

Founding AE / ex-SDR

I'm based in India. After my appraisal last month - I'm at $66k OTE ($57k base and $8k commission) - with a quota of $550k. For an equivalent of 2Mn Quota, a $240k OTE - which is roughly around 12%.

saaskicker

Tycoon

Enterprise AE

$3m in new business only, or is there upsell opportunity as well? Seems a touch high for a 5 year old company.

oldcloser

Arsonist

💀

There are 5 products. It's endless upsell. Yeah, its high. But its martech that creates budgets. So it's an oddball. Sort of like - you bought the gun, how many bullets would you like. We'll do 25M this year.

SaasSlingin

Politicker

Sr AE

Base=10% of quota roughly, where I’ve sold

crmsrawesome

Tycoon

Sr Enterprise AM for hire

Sounds pretty accurate. I’ve seen some firms go 10/11% but standard is 8%

oldcloser

Arsonist

💀

You must be from my era. 😁

TheQueenofDiamonds

Big Shot

Account Executive

simple math - if you bring 3mil in revenue attribution and get anything less than $300K in commission - they are screwing youIt is 10% most sales should get around 12-18% off the sale in SaaS (the good ones negotiate 20% :) )

CuriousFox

WR Officer

🦊

This seems batshit my dude.