Which Tech companies pay their salespeople the most? Current package: 120 base, 285 OTE
Isn't there a tax consideration with saleswork? Like they get taxed 50% or more on commisions?
There’s tax considerations with any and all job. The one thing that can get a little hinky is the variable nature of cash flow, but if you make $300K as an engineer or $300k as a Rep the taxes are fundamentally the same
@hadooper - tax withholding is higher on bonuses but bonuses aren’t taxed at a higher rate. I.e there’s no separate line item in your 1040 for bonuses. Tbh it’s probably a good thing that the withholding is higher due to the cash flow situation @sAof05 mentioned above! It’s a good problem to have.
^ you sure about that? Aren't commissions usually paid as a bonus and are taxed at 40%?
Yes. I am sure about this but I am also not an accountant so consult your tax professional.
Here’s an Intuit article that sums it up. To my point supplemental income is withheld at a higher level but isn’t taxed at a higher level necessarily: “As such, bonuses (like other supplemental wages) are treated differently than ordinary wage or salary income when it comes to taxes withheld at payout.” https://blog.turbotax.intuit.com/income-and-investments/bonus-time-how-bonuses-are-taxed-and-treated-by-the-irs-8003/
As a Series A startup CEO, I paid my reps an OTE equivalent to 1/4 of the quota. And always 1:1 base and variable comp. So our enterprise reps had 1M quota and 250k OTE, 125k base. If we were Seed stage, I would pay more (less product-market fit, harder to sell); if we had more marketing/brand/process I would set quota at 6-8x of OTE. I’m general, Quota is a made up number (especially at early stage) so go where the fishing is easy. Take a lower OTE and crush it and hit accelerators.
Do the Sales rep get stock grants too?
Yes but not much.
I’m always surprised how many people don’t understand the part about the lower OTE with a number that’s “crushable”!
300 OTE, 50:50
This is such a broad question. Level? Experience? Field (ex. ad sales)?
As an engineer who works in Enterprise companies , I never got a clear explanation of how the compensation structure is for the Sales rep. Care to explain?
Simply put: hit your quota and you’re guaranteed your OTE. Exceed that number and you start hitting accelerators that jack your income up much higher
Let's say you hit 90% of your quota, how much do you make? Also, if you make 200%, do you make 2x OTE?