i have worked in SaaS for a while (strategic accounts) and the take rate is usually 10% of the deal i bring in so closing a $2 mill ARR deal lands me a nice $200k bonus. however I see AWS, Azure, GCP deals that close $100+ mill deals. for instance Slack - $425 mill spend with AWS Pinterest - $750 mill spend with AWS datadog - $37 mill spend witb GCP how much is the take rate at a cloud provider? I doubt the sales exec managing pinterest took home $75 mill when they signed. #ae #enterprise #sales #aws #gcp
My reps have had take rates between 2-10%. It all boils down to how much your employer wants you to make, not how much you make them, right? Gotta love those yearly quota fights. What's your quota now?
$1.85mill right now, but as always it gets higher and higher every year :(
Victim of success. Good luck though man.
Can't speak for AWS or Microsoft, but at Google it has changed year over year. For awhile, sales ops and finance had things like windfall rules, commission caps, and consumption based quotas (ie - it doesn't matter if Postmates signs a $10M deal, you only see bookings credit when they actually use the products). After lots of pushback from the field, they have changed the sentiment, and generally speaking right now it is sink or swim mode. They have made it possible to make 7 figures on a deal by reducing the number of accounts each rep has. So if you are a rep and you only have 1 account and it's Pinterest who is all in on AWS, you are probably not seeing a dollar. But if you can get a $100M deal with Disney, you probably see a pretty payday.
This for sales rep, what about customer engineer? I heard their TC is also quota based, how does that work?
Ballpark rule is the younger a firm, the higher the commission. Once a firm figures out their product and accurately forecasts there sales, that when commissions get capped. All Cloud providers commissions are capped.
Depends on your quota and the acceleration plan, sounds your OTI is 10% so you must be 50% base - 50% var. At a typical SaaS company: 1>You accelerate when you are over your YTD or QTD number and then again over your annual number (additive) 2>Should have a term accelerator (2-3-4 year commitment kicker) 3>The caps comment is somewhat accurate, it's a % cap, not a $$ cap If you are in accelerators and a new logo rep, you should be doing 15-20% of the ARR/ACV. Caps typically speaking start at 25% or so of ARR. As always, it's a function of target, a GAM or MAM at AWS carries a totally different bag, you should compare yourself to SFDC, Docusign etc.
Ya, everything you refer to the the typical SaaS model, ( I am lucky we do not cap earnings), my question focuses more on real Cloud vendors where the typical ACV is $10 mill+ and in most cases you get a cut of usage/spend. Working at Cloudflare I have seen a ton of team members in SF go to GCP and AWS recently, so I am considering it. I am out of NYC, so we only have a couple sales reps here, SF is HQ where most the reps are getting offers so that’s why I am asking on Blind, but thanks for the comment, I know it’s useful info for others looking to break into Sales and understanding general commission structure
I think the upside is lower just because of the quota size. UBB (user based billing) drives targets as well, your take rate will be very small and probably be based on account growth only. Good luck
Typically the companies already have visibility on the potential wins for the upcoming year and the quotas are set according to that. These large deals you talk about are atleast a year in the pipeline and forecasted early on. So the account managers quota is set accordingly, so there is really not a major windfall. Amazon and Microsoft don’t have a take rate system. That’s usually only in smaller orgs. With the larger OEMs it’s all about meeting the quota planned for the year and anything above that you get accelerators kicking in. But do remember, if you blow your numbers this year, the growth and quota set for next year will be equally high and can be a setup to failure. In Microsoft iv seen AMs typically have 1 great blowout year in a given 3 year period. Iv also seen AMs and their managers slow down on the deals if they predict they will hit their numbers comfortably early on and will try to push new deals into the next year to give some cushion and not end up with a crazy quota for the next year because the growth rate assigned to you will not reduce. So none of this is unplanned. I’m guessing the account rep of Pinterest had a quota assigned for $700 mill around, so great, $50 mill above quota but that’s just 8% over achievement.
So I sell 3MM worth of B2B clothing for a fashion brand (highest at my company) I’ve never met a sales rep in my industry come close. We take 6%. But just reading this continues to show I’m in the wrong industry and could be doing more.. Btw no base, all commission.
wow, no base?! That’s stressful!
Lol our companies private and owner is very cool. All reps get a draw, some reps don’t make it at times. But I became drawn to switching industries since I am in B2B fashion. With the new lockdowns, we are again now facing bumps. I was at like 45k commissions already earned for Q1, now it’s like trying to avoid my inbox lol. Has been a roller coaster looking for a new role/company. I make more than most AEs not selling software but don’t sell tech.. it’s been miserable 😭 lol
If you don't mind asking, what is your base?
$165k