Thoughts on company offering only 4-5% commission per customer? A company sells expensive software ~300k ACV per deal. Deals take a long time and base is low. Is this a red flag?
14
Gasty
Notable Contributor
5
War Room Community Manager
Q. Do YOU think this is fair?
Q. Are YOU applying for this?
Q. Are YOU applying for this?
jefe
Arsonist
4
🍁
In addition to @Gasty 's questions:
Is it pure SaaS?
Is there custom development involved for each customer?
On-premise/hardware considerations?
Is it pure SaaS?
Is there custom development involved for each customer?
On-premise/hardware considerations?
Justatitle
Big Shot
3
Account Executive
long sales cycle low base to live off of, has this answered your question?
sketchysales
Politicker
3
Sales Manager
How many deals do other reps close per year?
CuriousFox
WR Officer
0
🦊
👀🍿
poweredbycaffeine
WR Lieutenant
2
☕️
I’ve seen 5%-12% on new business deals. How many deals do reps close per year on average?
Selling.is.helping
Valued Contributor
2
Account Executive
Reps usually close 4-5 deals per year. I wasnt aware of the percentage until offer was made.
DataCorrupter
Politicker
2
Account Executive
Seems low unless they're sending a lot of leads your way to make up the difference.
unclespacejam
Politicker
3
ur dad’s brother
Agree here. Unless they make it VERY easy to get leads/ are piping leads at you like it’s going out of style, this doesn’t make sense
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
Maybe its a red flag. What's the base? Is it generous and take into account the long sales cycle?
But 4-5% isn't too bad, especially if within a year or so you're closing several of these per quarter. Once you get that flywheel moving, will it keep making you money? That's the real question.
But 4-5% isn't too bad, especially if within a year or so you're closing several of these per quarter. Once you get that flywheel moving, will it keep making you money? That's the real question.
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
It seems low to me. 4-5 deals at $300k is 5% of 1.2/1.5 million IF this average is accurate and IF reps are hitting those targets. 4% of 1.2 million is not a big number with a target that size.
And what’s a long time to close to you?
And what’s a long time to close to you?
Selling.is.helping
Valued Contributor
1
Account Executive
9-12 months is the average (can easily be more than a year at times)
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
The flag could not be redder. Sorry. Hard pass. That’s not enough compensation for enterprise.
NoToBANT
Catalyst
2
Senior Account Executive
Red flag? Please - this the brightest redest flag ever
300k is enterprise selling. Enterprise selling = lomg cycles = more effort and expertise not everyone has = high comms.
At 300k ACV - you should be at 7.5-12% with a bunch of kickers on multi years
Typically these roles should pay a much higher base because earnings on Comms are normally weighted into q4/q1
300k is enterprise selling. Enterprise selling = lomg cycles = more effort and expertise not everyone has = high comms.
At 300k ACV - you should be at 7.5-12% with a bunch of kickers on multi years
Typically these roles should pay a much higher base because earnings on Comms are normally weighted into q4/q1
BigShrimpin
Catalyst
0
Account executive
not enough information to say definitively but assuming the 4-5 deals per year at 15k a piece plus your base is more than you made before then nbd if you want more money then negotiate or go somewhere else
0
Owner
3 to 4 seems low unless you get a strong base, particularly given the close time on each deal.
CRAG112
Valued Contributor
0
Account Executive
It is.
Also. Please be more specific on what low base means. Can you provide an exact number?
Also. Please be more specific on what low base means. Can you provide an exact number?
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17 comments