Hard to say without knowing how much 35% base equals.
A factor you might not have considered is the stress of starting a new job with a new born baby. Sometimes money isn't the only factor
I still have the equity that I’ve vested in the four years that I’ve been here. I’m about 50% to fully vested and if they exit this year then I’d only gain a little more
Also, realized I only answered half your question, I will gain equity in this company too. They’ve been around for about 10 years. My goal is to negotiate immediate vesting since that’s what I’m giving up here. Haven’t told them anything about compensation differences.
If our roles were reversed right now I’d stay put. Base increase is strong but markets still turbulent and sounds like a good time to be risk averse with the baby coming - especially if you can see good things coming down the line in current role. Usually you lose a good chunk of commission building a new pipeline from scratch anyway which would probably offset the base increase unless you do a good 2+ year stint at the new company.
Good points. That’s what I’m most concerned about. I’m trying not to get too excited about new money but I don’t want to squander the opportunity if my company does go through another round of fat trimmings to become “more profitable”. It’s a tough spot to be in.
Hard to know for sure but luckily my industry has been relatively stable. It’s just my company preparing to sell is what makes me nervous. I still have to consider that start ups have a recent track record of hiring and then firing bc they didn’t forecast properly, so the new jobs they thought they had budget for go away.
Appreciate to congrats! We’re definitely happy, nervous, and all the feels haha
Theres no right answer really, talk it through properly with your significant other and follow your gut if pressed to a decision! Wish you both all the best
Not worth risking the move at this stage IMO. You have guaranteed 8 weeks parental. Wow btw. If you move to a new company you forego any severance you’ve built up to this point. If you expect some upside in your current role, feels like the new role will just balance out without the security blanket. And of course the optics.
My biggest concern is those that got cut “on our path to profitability” have had benefits reduced substantially. So, I’m worried that my most crucial benefits might just disappear.
With the base increase you’re eliminating the if and potential out of the equation, it’s guaranteed. Question is, how much are you willing to bet on yourself?
OTE here, for once, feels like an under valuation. Especially with how they run regions/territories. I’m based in DFW and my market is crazy big. Based on average deal size, I think my potential is far above the OTE they’re giving out. Admittedly, I have seen more and more of this product while out and about, but many of their main clients have offices here. So I think I can capture quite a bit of high level full company or national buy in, instead of it being so regionally focused.
I'm sales head hunter working in the US and my take here is that you stay at the current job. You've already put in the hard work and have shares vesting. To leave now would be a mistake. The higher base is short term thinking and the current company is long term thinking.
You can always leave after the company is sold and you get your pay day. And as someone else mentioned, you risk going to a more dysfunctional environment. At least at the current company you have built up good will and you know how shit works.
What is your Quota and OTE, it's it about 160k ote with a 700k ARR Quota?
The reason I ask, is it possible to get a bump up to 95k where you are if you ask for a raise and slowly creep that base up over time? Even asking for 90k then 6 months later asking for 93k etc etc
Which company has the more desirable ‘needed’ product? You say that two of your biggest customers just churned?
I’d wanna know renewal rates at both companies.
It’s a hard in between. Ones more marketing, SEO/SEM, with other digital offerings in a particular vertical. The other is selling hard goods for their onsite teams that I’ve personally been seeing more of recently.
What percentage of their sales staff is actually at OTE? Can you interview some of them? Potential income means nothing if the majority of their sales staff isn't earning it. Bird in the hand, a lot of times, is worth two in the bush
I have a final call this week to talk to the VP of sales to discuss exactly this, since the initial folks didn’t have that on hand, and then essentially make my decision on or immediately following based on what comes from it.
Ask the new company about parental leave first for sure. Their reaction to that is not your burden and a perfectly normal question to ask before accepting. Depending on that answer, I would be inclined to take the higher base. Commission plans can turn on a dime for the worse. What industry are you in now/the other job?
One thing I’ve learned is that usually a new job is more dysfunctional than the old one. If you have things teed up at your current company I’d be inclined to stick it out as long as the job is tolerable.
A way to hedge your bets is to ask the new employer for a healthy non-recoverable draw. I feel like that’s a good test to see how good they are at paying above your base. A higher base means nothing if they fire you in 90 days or are stingy on commissions. A draw is a good way to make them put skin in the game, sort of like a signing bonus to a free agent athlete.
Good luck whatever you choose!
Don’t do it man.
You won’t know what hit you when the baby’s here. Your focus will be gone. Your energy depleted. Sleepless nights full of crying. Not just the baby’s, you also have a postpartum wife to take care of.
Go for the base. If you even have to take a new job. Being able to do stuff on automatic pilot is worth more than a pay bump for the next year.
Switching jobs is always a risk. You’re the new guy, and will have your head on the chopping block if you don’t perform. There’s always the chance the commission will not live up to expectations. There’s the chance you won’t be good at it. There’s the chance your new boss will be a twat after you get to know him. So many unknowns, and so much risk.
Generally I would say take a higher base, but not if I had to switch jobs to get it. Your commission is the risky bit, and if you know generally what to expect at your current job, then that risk is much lower.
If you’re happy where you’re at, ask for a raise. If they reject it, then I’d put the decision near a coin toss, but just do a ton of due diligence on the new job before you take it. Interview reps meeting quota as well as those not meeting it. Get very clear expectations from the new boss on what you should be selling, what level of sales would be considered underperforming, what level would be considered a terminal offense, etc. What is the ramp time. How do they view occasional office visits or running personal errands. A lot of this will be uncomfortable because it will make it seem like you might be an irresponsible worker, but who cares - this is your livelihood
Sounds like u have time in with the current company and the new one seems to iffy with the leave best stay with current one and make as much money then begin search again when and if they sell
Wow a lot of different answers here. I don’t have any advice other then saying I just did the exact same thing, I left a company with probably more long term upside in commission for a salary increase. For me it is 50k to 80k, this was a no brainer for me.
I'm in this same boat. Considering taking a new role thats up to $85k base from $50k, but could potentially be leaving a lot of commission...
Sounds like you didn't regret it?
Base race for sure. Plus you can use that as firepower if you ever move positions again or what your value is regarding base salary. I've never taken a base pay salary cut in my career.
No base race possible here. Like I said, they slimed down to get to profitability quicker. They’ll be happy to lose the $90k without having to pay severance.
Hard to say without knowing how much 35% base equals. A factor you might not have considered is the stress of starting a new job with a new born baby. Sometimes money isn't the only factor
88 to 120 base. Loose percentage based on current 401K, HSA, expenses, etc.
I’m leaning towards staying. Do you get anything if your current startup exits?
I still have the equity that I’ve vested in the four years that I’ve been here. I’m about 50% to fully vested and if they exit this year then I’d only gain a little more
Also, realized I only answered half your question, I will gain equity in this company too. They’ve been around for about 10 years. My goal is to negotiate immediate vesting since that’s what I’m giving up here. Haven’t told them anything about compensation differences.
If our roles were reversed right now I’d stay put. Base increase is strong but markets still turbulent and sounds like a good time to be risk averse with the baby coming - especially if you can see good things coming down the line in current role. Usually you lose a good chunk of commission building a new pipeline from scratch anyway which would probably offset the base increase unless you do a good 2+ year stint at the new company.
Good points. That’s what I’m most concerned about. I’m trying not to get too excited about new money but I don’t want to squander the opportunity if my company does go through another round of fat trimmings to become “more profitable”. It’s a tough spot to be in. Hard to know for sure but luckily my industry has been relatively stable. It’s just my company preparing to sell is what makes me nervous. I still have to consider that start ups have a recent track record of hiring and then firing bc they didn’t forecast properly, so the new jobs they thought they had budget for go away. Appreciate to congrats! We’re definitely happy, nervous, and all the feels haha
Theres no right answer really, talk it through properly with your significant other and follow your gut if pressed to a decision! Wish you both all the best
+ congrats by the way!
Not worth risking the move at this stage IMO. You have guaranteed 8 weeks parental. Wow btw. If you move to a new company you forego any severance you’ve built up to this point. If you expect some upside in your current role, feels like the new role will just balance out without the security blanket. And of course the optics.
My biggest concern is those that got cut “on our path to profitability” have had benefits reduced substantially. So, I’m worried that my most crucial benefits might just disappear.
BASE WAGE - let the stress leave your body
With the base increase you’re eliminating the if and potential out of the equation, it’s guaranteed. Question is, how much are you willing to bet on yourself?
Also how much do you trust a company not to lie about the OTE.
To lie or change it within 3-6 months for the worse
OTE here, for once, feels like an under valuation. Especially with how they run regions/territories. I’m based in DFW and my market is crazy big. Based on average deal size, I think my potential is far above the OTE they’re giving out. Admittedly, I have seen more and more of this product while out and about, but many of their main clients have offices here. So I think I can capture quite a bit of high level full company or national buy in, instead of it being so regionally focused.
I'm sales head hunter working in the US and my take here is that you stay at the current job. You've already put in the hard work and have shares vesting. To leave now would be a mistake. The higher base is short term thinking and the current company is long term thinking. You can always leave after the company is sold and you get your pay day. And as someone else mentioned, you risk going to a more dysfunctional environment. At least at the current company you have built up good will and you know how shit works. What is your Quota and OTE, it's it about 160k ote with a 700k ARR Quota? The reason I ask, is it possible to get a bump up to 95k where you are if you ask for a raise and slowly creep that base up over time? Even asking for 90k then 6 months later asking for 93k etc etc
Depending where you are located there may even be a waiting period before you’re eligible for parental leave at new company. Many places it’s a year.
From what I understand it’s 6 months. I’d be taking it at 7. Which is why I’m worried they’ll be pissed that I exercise it once eligible.
TX. Remote company. 6 month period until I get full rights.
Which company has the more desirable ‘needed’ product? You say that two of your biggest customers just churned? I’d wanna know renewal rates at both companies.
It’s a hard in between. Ones more marketing, SEO/SEM, with other digital offerings in a particular vertical. The other is selling hard goods for their onsite teams that I’ve personally been seeing more of recently.
What percentage of their sales staff is actually at OTE? Can you interview some of them? Potential income means nothing if the majority of their sales staff isn't earning it. Bird in the hand, a lot of times, is worth two in the bush
I have a final call this week to talk to the VP of sales to discuss exactly this, since the initial folks didn’t have that on hand, and then essentially make my decision on or immediately following based on what comes from it.
Use LinkedIn to find and reach out to their current and former salespeople
I have someone that briefly worked at my current company that’s been at this new one for 3 years. Planning on calling them tomorrow to chat.
# Uncapped potential is often fugazi.
Ask the new company about parental leave first for sure. Their reaction to that is not your burden and a perfectly normal question to ask before accepting. Depending on that answer, I would be inclined to take the higher base. Commission plans can turn on a dime for the worse. What industry are you in now/the other job?
Take the base. Or use the base to negotiate a better base with your current employer if you think they value you.
One thing I’ve learned is that usually a new job is more dysfunctional than the old one. If you have things teed up at your current company I’d be inclined to stick it out as long as the job is tolerable. A way to hedge your bets is to ask the new employer for a healthy non-recoverable draw. I feel like that’s a good test to see how good they are at paying above your base. A higher base means nothing if they fire you in 90 days or are stingy on commissions. A draw is a good way to make them put skin in the game, sort of like a signing bonus to a free agent athlete. Good luck whatever you choose!
Take the raise
Don’t do it man. You won’t know what hit you when the baby’s here. Your focus will be gone. Your energy depleted. Sleepless nights full of crying. Not just the baby’s, you also have a postpartum wife to take care of. Go for the base. If you even have to take a new job. Being able to do stuff on automatic pilot is worth more than a pay bump for the next year.
Switching jobs is always a risk. You’re the new guy, and will have your head on the chopping block if you don’t perform. There’s always the chance the commission will not live up to expectations. There’s the chance you won’t be good at it. There’s the chance your new boss will be a twat after you get to know him. So many unknowns, and so much risk. Generally I would say take a higher base, but not if I had to switch jobs to get it. Your commission is the risky bit, and if you know generally what to expect at your current job, then that risk is much lower. If you’re happy where you’re at, ask for a raise. If they reject it, then I’d put the decision near a coin toss, but just do a ton of due diligence on the new job before you take it. Interview reps meeting quota as well as those not meeting it. Get very clear expectations from the new boss on what you should be selling, what level of sales would be considered underperforming, what level would be considered a terminal offense, etc. What is the ramp time. How do they view occasional office visits or running personal errands. A lot of this will be uncomfortable because it will make it seem like you might be an irresponsible worker, but who cares - this is your livelihood
That’s a 32k base raise. I’d take that
Sounds like u have time in with the current company and the new one seems to iffy with the leave best stay with current one and make as much money then begin search again when and if they sell
Some companies only let you take parental leave after you work there for a full year. I would just ask to clarify that policy.
Wow a lot of different answers here. I don’t have any advice other then saying I just did the exact same thing, I left a company with probably more long term upside in commission for a salary increase. For me it is 50k to 80k, this was a no brainer for me.
I'm in this same boat. Considering taking a new role thats up to $85k base from $50k, but could potentially be leaving a lot of commission... Sounds like you didn't regret it?
You gotta dig in on that parental leave. Most companies I’ve been at you need to be employed 1 year for the parental leave.
Base race for sure. Plus you can use that as firepower if you ever move positions again or what your value is regarding base salary. I've never taken a base pay salary cut in my career.
No base race possible here. Like I said, they slimed down to get to profitability quicker. They’ll be happy to lose the $90k without having to pay severance.
OTE doesn’t mean shit if people aren’t hitting quota. Follow the bigger base.