SALES MANAGER/DIRECTOR COMP!!!!

About to move into a management/director level role-overseeing, training, coaching, recruiting, managing the field reps.


I've got flexibility to propose some compensation plan ideas. I'm curious what are some successful models for management compensation:

-based off success of the team?

-individual performance? How do you even measure this?

-success stories?

-Current examples?



๐Ÿ’ฐ Compensation
๐Ÿงข Sales Management
๐ŸŽฏ Career Development
10
SaaSam
Politicker
4
Account Executive
I've never held the role but I've been at an org where the sales managers made a percent of everything produced by their teams. It kind of resulted in the managers being huge micro-managers, I finally told mine that he wanted to see what I had for breakfast I could just tell him and that there was no need to crawl up my ass anymore. Worked for about a week.ย 
MCP
Valued Contributor
3
Sales Director
Itโ€™s not that dissimilar from AEโ€™s to be honest. Theyโ€™re usually team performance based, but keep in mind, a managerโ€™s quota is generally 75% of the teamโ€™s aggregate. It has to be, thereโ€™s no such thing as everyone on a team making 100%.
So consider what you want for OTE and then apply a 60/40 split between base & commissions. Make sure you get monthly payouts on variable pay & that they start immediately vs after thresholds are made. Donโ€™t forget accelerators and / bonuses above 100%. You may even get them at 90% with tiering.
SalesHacker is a good resource for this.
End of line.
LordBusiness
Politicker
3
Chief Revenue Officer
Your compensation should be based on the success of the team you are being task to run.ย  "Player/coach" roles are impossible and don't work.ย 
poweredbycaffeine
WR Lieutenant
1
โ˜•๏ธ
Base - 50%
Variable - 50%

Variable split as such:
33% team performance (Rev based)
33% recruiting based (growing your team)
33% OKR based (deploying new sales playbooks, etc)
aiko
Politicker
1
Sr. Account Executive
Iโ€™m curious to see how much they actually make!
Salesify
Executive
1
AE
From what I heard, you always take a pay cut from Sales Rep to Management. It's like becoming a BDR all over again - managing people is a whole new game.ย 
hh456
Celebrated Contributor
1
sales
I have 108k base, 401k matched, i can cash out 250 hours of pto a year (at $52 p/hr), I get 8% commission annually on the company gross profit (money left over after bills paid, pre-ebitda).
CuriousFox
WR Officer
0
๐ŸฆŠ
It should be based depending on the numbers of your team.
DeLaTommy
Executive
0
Enterprise Account Executive
Enterprise sales manager is $400k - $450k OTE
princess_slaya
Fire Starter
0
RVP
$140k base/$280 OTE is doable. If your team might be closing big deals or the teams are overachieving numbers consistently i would ask for a comp plan where you get a % of what the team closes. I was on a model where i had a targeted quarterly bonus and how much of it I got was based on the % attainment of my number. That model manages costs well for the company because it limits your upside as a manager
6

Differences between sales manager & sales director?

Question
12
7

Career in sales other than AE --> Manager --> Director --> VP

Question
10
10

Comp for VP Sales?

Question
11