I often see companies talk about uncapped commission on job postings, as if that sets them apart.

Are there companies that cap commission? How does that work? If you hit a certain number, they want you to stop selling...??? 🤷

I could understand at a physical goods company but how does this make any sense in SaaS, for instance?

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Mine caps commission. I haven’t dug into this year’s commission scheme yet but last year it was capped around 200% of quota. The idea is that if you manage to sell 200% than your target / quota was set wrong so you shouldn’t be paid more. I don’t really agree with it personally because it incentivizes colleagues to either stop selling or try to orchestrate things to make the sale fall into the next year. Either way, that’s not good for the company.

Thanks for the insight. I agree with you that it incentivizes salespeople to not sell beyond a certain point, which is crazy...

Obviously they wouldn't have you on a commission plan that doesn't earn them money, so isn't it a great problem to have for a seller to absolutely crush a quota???

That's not uncommon in DACH but usually these roles have a much higher base to variable ratio.
It's good for people who need a bit more financial security e.g. when you need to get a mortgage or are about to start a family (in Germany you get parental eave payments from the state that is based on your fixed income).

Interesting. What's the percentages breakdown for sales roles in DACH? In US, I typically see 50/50 split between base and commission for AEs and maybe like 60/40 or 70/30 for SDRs (skewed more to base).

VMware caps commissions on large transactions that hit >300% of quota. There are also accelerators for when you hit 100% of quota, but they don’t want to overpay commissions on super large deals.

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