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Not a red flag. A lot of people like 100% commission jobs because, normally, the upside is higher. However, I like the protection of having a base. I've had 60/40, 70/30 and 80/20 (base/bonus or commission) and have done well. Of course industry, location and company proficiency all play into the success equation too.
60/40 or 70/30is pretty standard
I personally prefer a 60/40 split. I enjoy a high base I can comfortably live on with plenty of upside. I assume it’s just on target earnings, and you can earn above the 40 with commission/bonus?
What industry? 50/50 is standard for SaaS
60/40 splits are usually wrapped around “farming” sales jobs (account renewals/named accounts/etc) and provide a bit of safety at a cost of upside. The closer you get to 100% commission; the more hustling you will need to do; the more “new business” you will need to hunt; and the more upside the job.
You need to decide for yourself; are you looking for as much money as possible or do you need some stability. I would focus around what are you selling; what your customer base is; and where is your industry lifecycle.
For example; if you are in medical/technology sales; the higher upside job may be a good fit. But the same may not be really said in office equipment (copier/printer). However, to answer your original question; nothing wrong with 60/40.
Thank you! This is exactly what I was looking for.
It means they don’t understand how to motivate and incentivize sales people. Major red flag to me.
My experience in SaaS says 60/40 is pretty standard.
I think that's pretty typical
60% of what ?
My guess is 60% of OTE is base and everything else is earned commissions
70/30 for the average
It’s standard but I prefer non commission. Our company does salary and our bonuses are based on meeting plan, but it’s adjusted for things like supply chain issues affecting our ability to sell
60/40 is standard. In prefer 40/60 though :-)