Does anyone have recommendations for resources to help "translate" commission structures in sales? I'm in a role with only a base salary looking to pivot to a more traditional sales role but am nervous about getting low balled.

Thanks in advance!

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Best thing you can do is look at you last years sales. Translate those sales into what you would have made as full commission. It's more work, but you are the knly on that can really do it. #excelspreadsheettime

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I work in sales compensation- do you know what your target payout is or the expected ote? Also look at the quota and previous achievement if possible. If you’re looking to get more insight on specifics at your company and their specific comp plan I would reach out to someone internally from the comp team and see if they can explain the structure

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Solutions engineering shouldn’t be base only, so is this just how your role is or how all SE roles are within your company? If you influence revenue, you should be compensated accordingly. Do you have a quota? On target earnings? Or are you treated like a support resource with MBOs and a bonus?

Commission rates vary for SEs but a common standard in SaaS software is a 0.2% rate and a 70 / 30 split for base + comp. The rate is determined by your quota and OTE, so there’s a good amount of math and structuring that is in play. There’s also a distinction between team numbers and individual comp plans. I carry a team number and am paid on all booked business with my whole team’s territory, whether I touched the deal or not. This is my preferred structure and it works well with my 4:1 ratio. Do you have mapped folks you support or are you assigned by a queue / availability / round robin?

Other types of SEs at other companies may carry an individual quota, supporting 1 - 2 AEs directly. Basically, you carry that sales person’s quota and only get paid on their booked business (I don’t prefer this structure, but depending on the biz, this set up can be easier to get it accelerators on). This structure is more common in hardware and physical tech, AFAIK. I haven’t seen this structure as much in SaaS, where we often have a higher transactional volume with lower individual deal totals.

If you have never carried a commission before, your target for your next role is whatever base you need to make a move (current base + at least 10%) and a commission target that is at least 30%ish of that base. So, if your base is 125k, your goal for a comp plan should be between 40 and 50ish k to get you to a 160 - 175k ish OTE. That’s not perfect match every time but it should give an idea of how you should be vetting comp structures for the next job. If someone leads with OTE, you’ll need to understand the break down between comp (and it’s corresponding rate, quota, when / how often that team hits their number) and base. Hope this helps!!

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