Weird Comp Structure

Got an offer for an AM position where commissions are only paid out once you hit 90% of Net Retention Revenue quota. That seems very strange to me. In my experience, payout has been tiered % wise as you chip away at quota (3% when 0-60% of goal, 6% when 61-90% of quota, etc)

The role is also a paycut because it’s a research company, but their whole teams hit quota so OTE is more realistic than tech.


Has anyone seen a commission structure like this for an AM position? I tried to negotiate higher base/a signing bonus but there didn’t seem to be flexibility. Appreciate anyone’s insight in advance.

💰 Compensation
🧠 Advice
15
poweredbycaffeine
WR Lieutenant
6
☕️
I’ve had 80% be the threshold, but that tells me the symptom they are combating with this tactic is churn.

Have you asked what churn looks like at the company? Also, if everyone is hitting quota, is it truly a fear?
CuriousFox
WR Officer
3
🦊
Yes I would like to know the employees aren't staying 👀🍿
Pachacuti
Politicker
5
They call me Daddy, Sales Daddy
I would run. Seriously. They are setting you up to work a ton for them but then they’ll never pay you.
Cazzipchic
1
Account Executive
This is exactly what I thought when I read the initial question.
detectivegibbles
Politicker
1
Sales Director
Not the craziest comp plan I've seen but doesn't feel favorable.

Dig in for more info...can you speak to any reps?
jefe
Arsonist
1
🍁
That threshold seems VERY high.

Do your due diligence.
Maximas
Tycoon
0
Senior Sales Executive
It's not common for many companies but still applicable at others, as Comp structure depends on many factors including the company's financial status, glad to here that the OTE is realistic though!
TennisandSales
Politicker
0
Head Of Sales
I have not had this personally but i have 2 friends that have this exact situation. But the number is no commission untill 60% of goal is hit for new business
Diablo
Politicker
0
Sr. AE
I haven’t worked directly for any structure like this; I wouldn’t be much mentally satisfied with this format but based on what the reps are achieved I am sure you found out your answer.
HVACexpert
Politicker
0
sales engineer
Never heard of this. Sounds sketchy.
Brushnickel
Executive
0
AE (Account Executive)
I asked this question to a founder and he said he has to check and get back, lol
ChumpChange
Politicker
0
Channel Manager
90% before being paid any commission is steep. Effectively meaning no one can churn in your book of business which is unrealistic. Seems like a scammy tactic to overwork and underpay someone.
SaaSlyfe
Opinionated
0
Enterprise Account Manager
Yes, this is not super uncommon though the 90% seems high. My co required 85% retention to be commission eligible on upsell. (I’m a full growth role not net new logos)
5

Looming comp plan change.

Question
4
16
Members only

0% commission comp plans

Question
33
7

Company changing comp structure

Question
12