npm55434
What % of OTE should be variable incentive and base?
4
depends on role but yea 50/50 ish is normal for software. I would say if you look at your target and your OTE is within 12-18% of that number its a good spot.
Good feedback, thank you!
I think it depends a bit on industry. I am in tech, so there is a higher chance I hit my OTE, so I like 50/50 so I can make accelerators. If I was in an industry where the sales were much longer cycles with lots of risk, a higher base would be nice.
Yes, in my industry the sales cycles are much longer. Can take months to close after submitting a bid, filling out credit applications, and getting contracts inked to placing orders which is when the salespeople get paid. We are always talking 5-6 figure deals for service adds and 6-7 figure deals for the whole package. So I believe the salespeople receive higher base. I am in an BDR/SDR equivalent role at this time.
I personally prefer the higher base
Typically ranges from 50-50 to 60-40
Depends on industry and tool being sold
Depends on industry and tool being sold
Thanks for commenting!
Cheers
50/50 unless YOU want it to be something else. Higher bases with less upside (base 150-200k/OTE 275k-330k) is common in the services space though.
Damn, $200k base. Must be nice!
Yeah, not me personally but I know the comp plans.
50/50
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If you sum up my expenses, I'm living...
51%
On base salary with well invested savings
20%
On base salary with crazy commission splurges
6%
On OTE I'm a big spender
22%
Combination
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