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bananadance829

Account Executive

Contributor
Fire Starter

Startup salary for a new manager: advice?

I'm CEO of a small startup who has 1 sales rep, currently making 85k base, 170k OTE.


She's now going to become a manager and have 3 reps underneath her (and more in the future). I'm thinking to raise her base to $130k, $260k OTE. My thinking is that she will still get involved in the largest deals and make comission on those, but also get a smaller comission for her team's quota. She also has stock options.


She's never been a sales manager before, but has people management experience. Trust her to do an awesome job. She's not located in a major city.


Any advice / words of wisdom?

Does this pay + strategy make sense?

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poweredbycaffeine
WR Lieutenant
5
☕️
Are you certain you’re willing to take a strategic risk/bet on an unproven sales manager to lead your sales org…in this climate? People management ≠ sales management skills. Can she:

Forecast
Create or at least influence comp plans
Develop PIPs in the event of underperformance
Report to a board
Manage the reality of 3 pipelines and her own

I’d strongly consider the viability of their success as a sales leader more so than the comp package to extend.
HVACexpert
Politicker
1
sales engineer
People management is definitely a part of sales management though. Everything you listed is absolutely required. But also is coaching, motivating, mentoring, empathy, and keeping others on task.

In a different post I asked people which is would you choose: hiring a sales person and teaching them technical aspects, or hiring a technical person and teaching them sales. A large majority said hiring a sales person and teaching them technical aspects, and they it is hard to teach ‘sales savvy-ness’. I believe the same can be said here.

You can teach her reporting, and forecasting, and comp plans, etc. it’s hard to teach someone how to be a ‘people person’.
poweredbycaffeine
WR Lieutenant
2
☕️
What if the CEO can’t teach those things? Do you spend cycles finding strong advisors to coach along your unseasoned sales manager?
HVACexpert
Politicker
0
sales engineer
There are ways to learn things without spending money on advisors. Every seasoned sales manager started unseasoned somewhere. Experience is extremely important, I am not discounting your point. And there is a learning curve. But if she has demonstrated the ability to shorten the curve, work hard, and be tenacious then give her a shot.

A person coming in outside the company would have a learning curve as well with company operations, protocols, software, and culture.
HVACexpert
Politicker
0
sales engineer
Thanks for the wonderful debate on this @poweredbycaffeine ! All love and respect to you.
CuriousFox
WR Officer
1
🦊
👀🍿
FinanceEngineer
Politicker
1
Sr Director, sales and partnerships
I agree with poweredbycaffine’s comment. Bring someone in with more leadership experience. However, you can also use this as a litmus test. Up to you really, but it could work really well or flounder when your junior AEs.
HVACexpert
Politicker
1
sales engineer
I respectfully disagree. If she has proven herself then promoting from within is the right thing to do. Give her a change to prove herself and learn. If she is someone who is coachable and takes feedback this could be a great move. Hiring from outside send a message of a pack of trust. If you do that you could alienate her as well and force her to look elsewhere. Hiring from outside could be more expensive as well. If she has done everything you have asked and you believe in her then give her a shot.
poweredbycaffeine
WR Lieutenant
1
☕️
Again, that only works or the CEO is able to coach and teach this skills OR if they company already has strong advisors to implement a playbook that takes a quarter or less to kick in.

Not saying they shouldn’t take the chance—I simply want to hear @bananadance829 plan.
HVACexpert
Politicker
1
sales engineer
I agree, a plan is needed!
FinanceEngineer
Politicker
2
Sr Director, sales and partnerships
So you agree with me. Still need a plan.
aenima
Celebrated Contributor
1
Principal Account Manager
WTF do you need a manager of 3 people.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
The salary/ comp is fine. I assume you feel her sales leadership skills are worth taking the risk on. In a start up EVERYONE is in sales and with only 4 people, I don't think you need a dedicated Sales Manager, but I don't have your perspective.

Good luck with it.
ventox35
Politicker
1
Sales Leader
as someone who's a spitting image of this person, allow me to say: I WISH MY BOSS WOULD PAY ME LIKE THAT.

my OTE is on par with your sales rep..and i manage a team of 7.

can i work for you?
starson
Good Citizen
0
Senior Sales Manager
Sounds to me like she is being set up for failure.
Also, there seems to be some mud in the water. N
Can you help me understand, please?
What is her qualification in sales, if her ppl mgmt lies outside?

Be very aware that her involved in the largest deals and making her own commission means she is player/coach...which is a very tricky role to execute. Less felt authority. Short path to micro management.
Those 3 reps underneath her, what is their experience?
oldcloser
Arsonist
0
💀
The comp is fine. I would advise a deep dive into your motivation to promote her with just 3 sellers who have not yet arrived. Can she interview? Can she write onboarding/training? If you’re trying to scale the systems have to support it or you’ll likely end up working her to death to get it all in place while she’s accountable for revenue. You’ll water down the efforts across the board. Startups are nearly an impossible environment for a new sales manager. All of this while you’re going to get quick answers to obvious questions like: Can she motivate? Is she a leader? Tough putt.
WheelofCheese
Opinionated
0
Sales Executive
Given the size of your company and her level of experience, yes, I think this is a fair offer.
GTMLeader
Good Citizen
0
GTM Leader
Kuddo's for promoting from within. Every sales leader has to start somewhere and IMPHO, a player/coach role as you described seems like a good pathway for her.

What is the timeline for hiring the other three rep's? Will she be responsible for training them? If so, that will be a huge time sucker for her. And have you thought about what the gate is for when she stops selling directly and focuses solely on the leadership role?

Player/coaches can struggle early on with time management and juggling priorities. As the CEO, that is something I would suggest you keep an eye on.
aenima
Celebrated Contributor
0
Principal Account Manager
WHY DO SO MANY PEOPPE INSIST ON PUTTING A MANAGER OVER 3 PEOPLE?
😡

You’re paying someone to $260K to have the ability to fire someone and monitor a pipeline?
Maximas
Tycoon
-4
Senior Sales Executive
Go for it, but I recommend you putting her in a 3 mo probation period let's say just to see how things actually work with her and once the duration is up you can decide then either to keep her at the new post or let her handle her old task or try her at a different one!

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