GottaSellEmAll profile picture
GottaSellEmAll profile picture

GottaSellEmAll

Sales Manager

Big Shot
Catalyst
Executive
+8

Sales Leadership Compensation

Looking to restructure compensation in a favorable way. 

how should I think about compensation for sales managers? AEs compensation is a little more straight forward. How should I size a managers salary based on the revenue the team generates and general per AE improvement on the team?

what are typical OTE seen for sales managers?
🧠 Advice
🍾 Commission
🏋️‍♀️ Leadership
10

18 comments

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CuriousFox
WR Officer
4
🦊
@1nbatopshotfan
1nbatopshotfan
Politicker
1
Sales
Thanks Fox!

You want to look at a few things. Does the manager have any book themselves? Are they responsible for upsells and renewals or is it new logo only? Do they hold the whole budget or a portion?

I think generally you want to be around 70 or 75 of OTE as base and then the rest is 25-30 based on team performance.
SoccerandSales
Big Shot
2
Account Executive
Correct me if I am wrong, but from what I have seen, managers tend to have a vast majority in their base salary with a smaller quota/bonus for team achievement. Would your managers be open to potentially assuming more risk if you upped the variable and decreased the base?
Kosta_Konfucius
Politicker
1
Sales Rep
In the small sample size from where I have worked, their split is "typically" more on the 75/25 side favoring base. And paid out via quarterly bonuses on % to goal
CPTAmerica
Opinionated
2
President/CRO
hard to say what's typical. Most sales managers still have a double base OTE. Size of company, number or reps they manage, average deal size will all factor in.
GottaSellEmAll
Big Shot
2
Sales Manager
Typically for a rep you want annual quota to be somewhere around 4x-5x of their total OTE as a rule of thumb. Is there any math like that to size the actual total size of a managers OTE?
FinanceEngineer
Politicker
1
Sr Director, sales and partnerships
Management is heavier weighted on salary, with bonuses being % if everything sold. I have seen it at 1% of new sales, or fixed % of salary once milestones are hit and just going up. It depends on the product and margins.
oldcloser
Arsonist
1
💀
Really depends on revenue/stage of the company and seniority of the manager. If you're looking to bump management comp and share company success in a "favorable way," think salary increases.
poweredbycaffeine
WR Lieutenant
0
☕️
This is a far more complex topic than a Bravado post. Are you the CRO, CEO or CFO of the company?
GottaSellEmAll
Big Shot
-1
Sales Manager
Enlighten me
poweredbycaffeine
WR Lieutenant
3
☕️
$300/hr to consult. Cash or card?

Again, are you a leader at the company?
GottaSellEmAll
Big Shot
-1
Sales Manager
Yes. I would not be asking this if not a leader.
poweredbycaffeine
WR Lieutenant
1
☕️
Well since your profile says AE and SDR I am dubious.

So should I send you a 10-block consulting invoice?
GottaSellEmAll
Big Shot
-3
Sales Manager
No you dumb fuck. Why don’t you see your way off this thread because you’re not contributing anything helpful
poweredbycaffeine
WR Lieutenant
2
☕️
Wow. I would have helped when I had free time since I’ve built a lot of comp plans and structures, but now you’ll get nothing.

Have a sense of humor. It’ll propel you further.
GottaSellEmAll
Big Shot
0
Sales Manager
Thank you kindly. I’ll work on that sense of humor
SalesMama
Executive
0
Senior Account Executive
I’ve seen OTE even below that of reps but with higher equity. Aggregate team quota + maybe add a buffer and make that the goal on a 50:50 split
Maximas
Tycoon
-2
Senior Sales Executive
70/30 sounds reasonable to me.

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