{ "media_type": "text", "post_content": "It’s interesting to see a lot of sales people want to learn about OTEs but nobody asks about quotas related to OTEs. Most companies make OTEs look attractive and then demand massive quotas and only 20-30% of people hit goals. I’m curious to learn about marketplace commission rates. What’s your quota target? What’s your commission % paid on every dollar up to 100% ? And what’s offered in accelerators above 100%?", "post_id": "5feb183a45945300208db2d5", "reply_count": 15, "vote_count": 8, "bowl_id": "5787dd60a3f35c130082b851", "bowl_name": "Sales" }

It’s interesting to see a lot of sales people want to learn about OTEs but nobody asks about quotas related to OTEs. Most companies make OTEs look attractive and then demand massive quotas and only 20-30% of people hit goals. I’m curious to learn about marketplace commission rates. What’s your quota target? What’s your commission % paid on every dollar up to 100% ? And what’s offered in accelerators above 100%?

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This shared structure is how we run our SaaS sales org. We expect 5X ROI from our reps. 200K OTE = 1MM quota. I’m transparent with reps about this. Companies may need to over invest in talent at beginning as they are building out GTM strategy. Once established, this structure keeps CAC in line. I’ve also always tried to structure goals/comp plans where a third of reps crush, a third are near or at plan, and a third struggle. If struggles continue, we have to find new reps

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Sorry. Have a full team heading into the new year. However, we are a newish tech company. With the brand recognition, cache, pay, benefits that SF offers, 15X may not be out of line. Furthermore, my team is new business only. My understanding is that SF reps manage accounts, sell expansion licenses, etc. This all changes the equation.

That’s interesting we have a 15x multiplier in cloud sales quota attainment and about 8x in core.

Salesforce calculates ARR. So again cloud is 15x+ Core 8-10x. Average attainment is 15% for 100% OTE. Most AEs hit 45-60% variable.

We're ~10x (ARR/OTE) and 80% don't make quota. It's the right question and also likely easier to negotiate a lower target than higher OTE even though the impact to your pocket is the same.

In the example I gave and that the article references a multiplier of OTE is self correcting as if reps want to negotiate a higher salary than they understand the direct implication it has on the higher quota. In most cases a rep will stop negotiating for a higher salary to give them a better shot at hitting their targets and accelerators. Of course over time, reps want to get paid a higher base salary but of course that means they are more experienced and therefore should be able to hit a higher quota target and a company should be willing to have that conversation, but the conversation always sounds like “yes, you’ve hit quota 4/6 quarters, we can raise your salary 10% and therefore your variable is raised 10% (assuming a 50/50 salary vs OTE). When looking at a holistic financial P/L, cost of sales and commissions have to stay in line. I also have found this method works really well because you know that sales reps will discuss their salaries with each other even if you tell them not to or it is discouraged. If everyone knows that they are on the same mechanical plan, for example, 50% salary versus 50% variable with a 5X multiplier of annual recurring revenue quote at target then reps who may find out that a rep is paid higher don’t really care about it because they know that they have a better chance of making more money if they get into Excelerator‘s when they hit their target. I am also talking to type so please excuse some of the awkward word choices!

Yeah it's a great structure and something I'll take back to our business. For us (and I assume most orgs hence this thread) reps are given a base and a target, though the two feel unrelated and likely fluctuate across the org.

VMware’s sales comp plan is very complex, but currently some of the details are: 1. If you hit less than 50% of quota you only get paid at 0.75x. 2. If you hit 50% to 100% of quota then this marginal amount gets paid at 1.25x (incentive to achieve quota targets). 3. If you hit 100%+ then even higher multipliers kick in at 2.5x & 3.0x (so there is a strong incentive to overachieve). 4. But these multipliers level off again to 1x above 200%.

$8100 per quarter/32,400 annually MRC for Sr $6700 per quarter/$26,800 annually MRC for Enterprise OTE is $48,000- But can beat this number without hitting if you blow out a couple of quarters and hit the incentives. Normally 1-5 out of 35ish hit quota but this year only one. Ive been top 5 every year and still miss. I just missed it this year as i took 2nd but claim a * cause i sold a massive deal that went to another team or i woulda won first. 😔

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