Laura Brown

VP, Sales at Aiden

Startup Sales Compensation + Equity?

I am a founding member of a seed-stage company. I am the first sales hire and have built out most everything for the sales org (with collaboration from colleagues where appropriate). In 3 years, I have taken the company from $0 ARR to $2M ARR. Avg. deal size is ~$100k ARR.

We are just securing our latest funding round ($4.5M) which brings our total funding to about $7.5M.

I am working to prep for my compensation review - please share your advice and data on where you believe this role should land including Base Salary/ OTE/ Equity.

Also - if you have knowledge on equity, please share!! I have so many questions as this is our first priced round and I've never had equity in a company before.

💰 Compensation

24 comments

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CuriousFox

WR Officer

🦊

@poweredbycaffeine about to drop some knowledge I feel it.

poweredbycaffeine

WR Lieutenant

☕️

No I’m not. Not until Laura tells us where she thinks she should be. We aren’t free consultants.

CuriousFox

WR Officer

🦊

THIS IS MAD KNOWLEDGE YO

VP, Sales

Ouch! Day 1 in the group and ya'll are savages! :)

I'm most curious to get info about equity, for salary I know 50/50 split is common with $300-400 OTE. Considering I'm no where near this today, I don't think I'll be able to get that so I'm trying to at least get somewhere reasonable with base and really go for equity.

Equity, I have seen 1-5% for founding sales person, but that's a huge range.

Good enough to start a conversation @poweredbycaffeine?

poweredbycaffeine

WR Lieutenant

☕️

I took 7% as the 5th employee and founding sales rep. You have the opportunity to do something interesting though…you could ask for a 100% cliff as opposed to a 4-year vest. Gain access to all options at a potentially rock bottom strike price. I’d go after that as my main negotiating chip.

I only say that because your proposed OTE is likely not gauged properly given your stage, but for a series A company I could see that being correct.

I’d do this: negotiate hard for a $250k OTE with a short fuse cliff with 100% vest.

poweredbycaffeine

WR Lieutenant

☕️

Also, I knew you’d produce context—I’m simply on one today.

VP, Sales

Thank you! This is super helpful. F why is negotiating so stressful??

poweredbycaffeine

WR Lieutenant

☕️

It’s only stressful when you have to negotiate against people who should want you to have what you deserve.

CuriousFox

WR Officer

🦊

SAY IT AGAIN FOR THE FOLKS IN THE BACK

RandyLahey

Politicker

Account Executive

This. Cliffs are the way. Vesting schedules are long, and market swings can dramatically sway the value of what's being vested. This + blackout periods, if the company eventually plans to go public, can hamstring your ability to sell these shares.

buckeyenation

Acclaimed Answer

Just remember —> alternative minimum tax. Understand this in detail before you let them give too many bogus options

poweredbycaffeine

WR Lieutenant

☕️

The blown out table, a classic.

braintank

Politicker

Enterprise Account Executive

What's your current ote?

CuriousFox

WR Officer

🦊

👀🍿

RandyLahey

Politicker

Account Executive

How many existing shares are there? What are the company's plans to dilute these further for future funding rounds?

What are the shares currently priced at internally?

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Equity is only valid if they go public, usually, and sounds like its a ways off still. I'd focus on your base+commish. And maybe an "exit/severance clause".

buckeyenation

Acclaimed Answer

Do the other founders View you as a founder? By your logic you should have 33%? No, 50% of the equity!? Pardon my cynicism.

How replaceable are you? Don’t answer that. Answer this: have you taken majority of those deals from nothing, not a lead not a warm intro, nothing, to closed without any help from the others founders? If that is truly the case then you have bargaining power.

If you are one many entitled, young, ambitious, know nothings, think twice.

The reality to me says you are someone they might mold a pattern after. That is what the series a money is for. Might be a way to position yourself.

Happy hunting. Stay humble, gracious, and arrogant all in equal parts.

FinanceEngineer

Politicker

Sr Director, sales and partnerships

Equity is just extra bonus. View the valuation as a lottery ticket. Get a decent base, and take on closed deals.

Maximas

Tycoon

Senior Sales Executive

I totally second this!

detectivegibbles

Politicker

Sales Director

Just here for PBC's comments...learn something every day in here.

CuriousFox

WR Officer

🦊

How ya doing today bb? Gain any clarity overnight?

VP, Sales

A true curious fox! Had a great initial convo with my CEO and looking at some nice amicable numbers of where we could end up. I think I’m the only non-anonymous user on here so don’t want to spill too much!

CuriousFox

WR Officer

🦊

Go anon. All the cool kids do it 🦊

SellingForSovereignty

Executive

VP, Sales

Feels good to be a cool kid

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Laura Brown

Startup Sales Compensation + Equity?

24 comments

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