I ran across a question on the Inside Sales Experts LinkedIn group last week. As luck would have it, I’ve been working our 2017 SaaS AE Metrics & Compensation (due out next month) and have just the perfect dataset. The question read:
Manager Earnings vs. Rep Earnings
I think we would all agree that top reps will and can always make more than their sales managers. But where should that line be? Has anyone seen any data that identifies where manager compensation should be relative to their reps?
This is one of those questions that causes a gut reaction. I’m sure you’d agree that a “top rep” should outearn their direct manager. But how many top reps? Is true for every #1 rep in every group?
Beyond making for fantastic cocktail party conversation, this is an important question.
As anyone with a pulse and open AE headcount can tell you, we’re in a highly-competitive market for top talent. If your compensation plan limits, caps, or otherwise blocks AEs from the potential to outearn their boss, something is wrong. I hope you’ll evaluate your own plans as you read through these findings.Read More