I feel like I've been lowballed, can someone explain the below breakdown please?

Base salary: 60k
Quarterly quota (per quarter): 107k
Quarterly bonus (per annum): 23k
130% Annual bonus = 11.5k
"23% commission on quota minus base": 37k (don't understand this)
"Proposed 23% commission on 150% quota minus base": 86.5k
Sales commission threshold per month: 22k
OTE: 122k
Cost/Sales: 28%

That base salary is lower than my previous base by a significant amount by 32.7%

like
Posting as :
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Ask to see how current reps are tracking towards their goals to see how attainable the OTE is.
I would ask:
- How many reps are hitting 100% of their quotas
- What’s the average quarterly commission and is there any seasonality to take into account
- What percentage of reps are at an OTE of 122K
- When was the last time bonus structures were changed and how often does this happen?

I’d ask to see actual dashboards tracking this information, obviously with names removed, to get a better understanding of how attainable the OTE is

like

After joining for almost 2 months. The team is relatively small. We had 1 AE prior to joining and 4 CS.

It’s strange that CS also does sales but more so on upselling with existing clients.

Now we have 4 AEs, and 2 CS for MM. The single AE was averaging 200% quota a month

“commission on quota minus base” - sounds like a “draw”

likesmart

Definitely a draw

Why don’t you just ask your prospective employee to go through it with you?

like

Seems low, but how much experience do you have? Sometimes it needs to be a stepping stone to get more experience or get into a certain area. After a year you can move and make more. I would take that deal if you are going from 85 to 123 OTE. There is more at risk, but pretty easy if you are good at sales.

like

Salaries can also be dependent on your location. WFH has evened things out in the past few years, but I still have to compare my salary offers with the candidates' geo-location when going for approval to make the hire.

like

Are you selling a product that has zero cost to produce or maintain. Does the company have zero overhead to maintain. Is this a 1099 gig or do they pay for healthcare benefits? Retirement benefits?

In my industry I get a base of 55k. I get a commission rate of 9% when I am at plan. It drops to 4% if I’m below plan.

I sell 6M a year. But my product i sell costs a lot to make. The corporation has huge overhead.

I’m ok with 9% - why because they spend a ton of money to make the stuff I sell, keep the lights on and provide adequate customer support

like

Is it medical sales or something? I have never heard of someone getting an actual % of sales in tech outside of a reseller (and they don’t make the products).

I’m not sure I can help with whether or not it’s lowball, but an extremely complicated formula for commission is always concerning. I think depending on where you’re at and the industry $122k isn’t too bad, but if it’s tech sales executive it’s definitely low. That floor is much higher.

like

i’m based out in Hong Kong

An account manager II at my company gets around $110k base and 30% commission (both can be negotiated). For reference a sales director can have a $170k base with 45% commission. The commission is tiered and you can make up to 3x commission. Very few sales directors reaches $400k but most reaches $300k. Your base sounds low and check the track record of reaching targets.

like

So you’re target is to generate 428k in annual sales…

How much do you think you should earn on 400k in revenue generated?

like

I don’t have a clue, it says 23% - is that under?

Any signing bonus?

Thank you…it was incredibly soul crushing

78k base, $130k OTE

If your total quota is $428K, and you are hitting $152K at quota, unsure how they show OTE as 122K. If your CAC is 28% just for sales, not including marketing, that seems in the ballpark. Oh, I see now, they are reducing your quarterly quota by your base compensation, I believe. This is way too complicated for what should be a simple formula. I would ask for a spreadsheet with example payouts. Your base is low.

They started me at $80k and said that was the highest they were going blaming it on location. I lived on the west coast and things cost where I lived at the time what they do in California because everyone was moving from there to where I live plus inflation. Gas was $5.85 per gallon. Didn’t make sense

I work for a publisher and my salary is 48k and I can earn 3 percent commission on all the deals I close along with bonus money on all targets hit. Is 48k base too low in the media industry?

Seems low to me

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