idrizzyraindoe

Student

“Uncapped” commission SDR

Hello lovely Savages. Newbie here. In researching and talking to companies, when discussing salary I'm finding the common SaaS compensation package consists of a 45-61k base and a 59-85k OTE. Some are capped and others, are not.

I've found a good paying company, high end of base and "uncapped" commission. Though, it's sus to me. Have a relative in Sales that got pushed out for making too much commission, and keep hearing about ways companies offer "uncapped" commission, but find methods of blocking you? 🤥

So as a total salary and industry noob, what are your takes on this?

🍾 Commission

💰 Compensation

📳 SaaS

17 comments

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salesking

Politicker

Manager of Business Development

I got pushed out of my last job as an ISR for making too much money, but it's extremely rare to happen because the company usually are happy to pay out as long as the money is coming in. You should not be afraid to kick some ass and make some bread.

I am currently hiring SDRs, and we are paying 55-60K Base and 85-95k OTE uncapped... if my SDRs is making more than 100K, that means they are doing everything I am asking for, and I would never fire him... if they were that good, I would work with them to get ready for promotion... when my team succeeds... I succeed with them.

idrizzyraindoe

Contributor

Student

Thanks for this salesking! Arguably, isn’t pushing someone into leadership a way to cap their commission? I know this takes on a whole other kind of conversation, but I’m interested to hear your take.

salesking

Politicker

Manager of Business Development

I would be pushing somebody to get promoted to AE which would not be capping them

idrizzyraindoe

Contributor

Student

Oh ok ok that makes sense. I know sometimes people push high performers into management instead

salesking

Politicker

Manager of Business Development

Even though my title is manager I’m also an individual contributor which makes more money then managers usually but I also like mentoring people so I like my hybrid role

Coastal_crusher

Politicker

Sales Director

This is insane and a clear sign that you were too good for that place

antiASKHOLE

Tycoon

Bravado's Resident Asshole

Start asking other SDRs at the company about their experience. It doesn't hurt to do your own research.

Sunbunny31

Politicker

Sr Sales Executive 🐰

This is always a good idea! What's said on paper may or may not be what's experienced in practice.

Diablo

Politicker

Sr. AE

This would be my action as well !

Sunbunny31

Politicker

Sr Sales Executive 🐰

We've also had many discussions on here about why capped commissions are a bad idea. There's no incentive to excel in that environment, so "uncapped" commissions is considered the standard.

I'd be asking how many SDRs make quota - and I'd be asking other SDRs, as anti recommended.

idrizzyraindoe

Contributor

Student

I guess it really depends on the company, though I completely agree with this. I’ll dig around for that info for sure

Sunbunny31

Politicker

Sr Sales Executive 🐰

Big deal clauses and exclusions are common at larger companies that give them the right to review and renegotiate payout on big deals. For example, if average deal size is around $400K, your quota is around $2MM, but you land a whopper $7MM deal, it's not uncommon for the red pens to come out and your 12% commission rate to not apply.

That said, it's unlikely to apply as SDRs, and success is not likely to get you pushed out unless the company is extremely short-sighted. I wouldn't worry about it - go out and thrive.

idrizzyraindoe

Contributor

Student

Thank you! This is great insight. It’ll be a hot sec before I’m closing $7M deals BUT when that happens I’ll keep this in mind haha!

Sunbunny31

Politicker

Sr Sales Executive 🐰

You'll get a comp agreement each year. You'll have to sign it. Sadly, clauses like this will show up and not much you can do outside of sign it and pay attention to how to best maximize comp and make sure you have a manager who will go to bat for you so you still come out ok. Even MM reps will have something like this in case they do get that whale.

Biggest thing to do is never spend the $$ until it's in hand. Goes for all commission, BTW. (unsolicited advice)

Diablo

Politicker

Sr. AE

There are pros and cons both which are highly dependent on the company. Example - in our org we want our sdrs to earn more - we find ways on how to get them to achieve those numbers because when they earn they are contributing to more top line as well!

sales4lyf

Politicker

Business Development Manager

Definitely reach out to others who work there and ask for their opinion

ThatNewAE

Big Shot

Account Executive - Mid enterprise

Do your own research before you make the move. Sometimes 'uncapped' looks really cool, but then you realise after making the move that the market and the product wouldn't let you make that 'uncapped' money.

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idrizzyraindoe

“Uncapped” commission SDR

17 comments

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