Transitioning from Senior AE to Sales Manager (Thoughts on Compensation?)

I've recently been promoted to Sales Manager of the North Americas. We are a small SAAS startup, so I am only leading a team of ~5 AE's.


I've been leading the Sales team for the past two years, with a 1.2m quota. 100K base, 10% commish.


Right now I am still in that Player/Coach role, where I still am commanding that quota but slowly transitioning to building out the team as a whole.


My goal is, as I further build out the team, to quickly transition out of the IC role and become a full-on Manager.


As a startup, this is all new and there are no precedents in terms of comp plans for this change. I will need to go to my CEO with what I expect as I fully make this transition.


I'm not naive in knowing that IC's generally make more as they are the one's closing the deal, but I want to come with a strong (but reasonable) offer of what I think my compensation plan should change to as I transition into this leadership role.


For those in Sales Management (or have that experience), what does a standard comp plan look like? What is a reasonable ask and structure that I could build a plan off of for myself?

💰 Compensation
5
oldcloser
Arsonist
4
💀
Your base goes up, your commission turns into an override. Assuming $6M for the company rev goal, $125k + 1% of total sales seems to fit. If you can swing that with quarterly carrots plus an annual bonus for 110% of the number you’ve killed it. Lots of ways at it, but in your situation simple math will likely prevail.
GreenSide
Politicker
1
Sales manager
Is my math wrong? Current OTE is $220k. Your suggestion puts new OTE at $185k.
oldcloser
Arsonist
0
💀
More if quarterly/annual bonuses. This, guessing $6M top-line. and simultaneous payroll hit for new sales hires well before revenue. Hard to imagine a bigger number tolerable.
GreenSide
Politicker
0
Sales manager
I would think a manager’s OTE should be higher than the OTEs of their reps. Top reps can make more than the manager but only if the other reps aren’t performing as well IMO
oldcloser
Arsonist
0
💀
Sure, if usually is normal. Seems this person was the staff unicorn though. Hard to tell with information provided.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
OTE = 220K? And all AEs with the same quota?
CuriousFox
WR Officer
1
🦊
👀🍿
Maximas
Tycoon
-1
Senior Sales Executive
30/70 200k
4

Sales manager to AE

Question
3
43
Members only

Sales Director or Senior AE?

Advice
54
9

Senior SDR to Field Sales Role - what do I need to know?

Question
9