Category

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Series B Key Challenges

Series B Teamās org

Market Practices

Minimum 4 times Sales Reps' Salary + Salary Taxes

Critical

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This KPIās tells more about your

**sales team profitability.****š Ā GOOD**

Minimum 4x Sales Reps' Salary + Salary Taxes

If your sales rep costs 80kā¬ per year of gross salary, meaning 116kā¬ (adding in France 45% of taxes), it means that each sales rep should generate over 12 months464kā¬ of ARR, when they are fully-ramped.-StĆ©phane, CEO @ AtScale

Two industry standards allow us to simplify greatly: -The standard commission rate for SaaS products is 10%.ĀFor example, closing a $100,000 ARR deal generates a $10,000 commission. -In constructing an OTE for an AE, a 50/50 split between base and variable compensation is typical.Ā For an AE whoās hitting quota, their variable pay will equal their base salary. - Taken together, these standards generate a third rule:Āthe typical quota will equal 10x base salary.Ā I call this the Rule of 10. -From Simple Math to Set Up a Sales Team by David Sacks