Category
Series B Teamās org
Market Practices
Minimum 4 times Sales Reps' Salary + Salary Taxes
Critical
ā
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 months 464kā¬ 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%.Ā For 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:Ā the 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
From KeyBanc Capital Marketsā 2022 SaaS Survey:
