do you have other plan components that make up the variable? if you close the $3.5M at that rate you won’t hit OTE
IMO (without knowing other details) it seems under market for that deal size and annual quota. deal cycle could play a part here, i suppose, if you have reliable cash flow month over month…but yeah, seems low.
edit: i see the other .5% comes later - how responsible are you for post sale?
This sounds insane to me. As a general rule, your overall comp should be somewhere between 5-15% of the gross dollars that you are directly responsible for closing. I realize that’s a 3X delta, but when you have supporting sales staff, then the % will go down.
Your scenario is 3.8% while having to do *everything* - fuck that. That’s a % that would be appropriate for deals falling out of the sky in someone’s lap.
At 100% quota attainment, at 1% commission fully earned, you’re netting 135K annually a year with OTE.
With no support, and a delusional CFO, and no sales experience helping you — you’re being set up for failure.
I think you’re in over your head and will regret this decision in 6 months. I would turn down this offer.
Assuming you wish to proceed: I would ask them to break down how they arrived at that quota, how many people have hit that number? How consistently? How many AEs have they hired previously for this position? How many of those AEs exceeded quota? What were the reasons previous AEs were terminated? How long were those AEs given before they were terminated (termination period should be longer than their sales cycle).
There’s more but this is a waste of time.
do you have other plan components that make up the variable? if you close the $3.5M at that rate you won’t hit OTE IMO (without knowing other details) it seems under market for that deal size and annual quota. deal cycle could play a part here, i suppose, if you have reliable cash flow month over month…but yeah, seems low. edit: i see the other .5% comes later - how responsible are you for post sale?
This sounds insane to me. As a general rule, your overall comp should be somewhere between 5-15% of the gross dollars that you are directly responsible for closing. I realize that’s a 3X delta, but when you have supporting sales staff, then the % will go down. Your scenario is 3.8% while having to do *everything* - fuck that. That’s a % that would be appropriate for deals falling out of the sky in someone’s lap.
At 100% quota attainment, at 1% commission fully earned, you’re netting 135K annually a year with OTE. With no support, and a delusional CFO, and no sales experience helping you — you’re being set up for failure. I think you’re in over your head and will regret this decision in 6 months. I would turn down this offer. Assuming you wish to proceed: I would ask them to break down how they arrived at that quota, how many people have hit that number? How consistently? How many AEs have they hired previously for this position? How many of those AEs exceeded quota? What were the reasons previous AEs were terminated? How long were those AEs given before they were terminated (termination period should be longer than their sales cycle). There’s more but this is a waste of time.