Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Here's an anecdote: at my company, sales reps start with an average base for their first year, then move to a low base (like 30-40k + commission + kickers) afterward. In an average year, our top sales folks have the highest comp of all but the very top (CxO and a couple EVPs) executives, usually in the 600-700k USD range. The Eastern US VP of Sales works out of the same office I do and has a $2m home.

Just to give you an idea of why this model is attractive ... and also why there is such huge churn in Sales. If you don't succeed pretty quickly, you're going to be broke.



It does seem like a common metric for small to midsize companies, that your #1 salesperson should earn as much if not more than the CEO. It's funny because CEOs will say, without a second thought, those are the dollars they are happiest to spend.

What makes the rockstar saleperson's commission so much happier spending compared to the rockstar engineer's salary? I think simply the ability to measure the ROI on those dollars. The day anyone figures out how to directly measure ROI of engineering dollars with the same "obviousness" as sales quotas / commissions, it would completely change how we hire and retain engineers.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: