[theoryofx]

"this is in keeping with the way enterprise sales is done more or less everywhere..."

For non-sales roles you're doing things very differently than (most) everywhere else, which is why it seems like a compromise to give in to an 'industry standard' model for enterprise sales.

The fact that sales is quantifiable doesn't explain why sales people get instantly rewarded with cash comp (+ equity) while everyone else on the team might wait years for a potential liquidity event.

The real explanation for why sales people get paid so well is that some really good sales people sold the idea of a highly favorable 'industry standard' model for enterprise sales.

[lbotos]

> why sales people get instantly rewarded with cash comp while everyone else on the team might wait years for a potential liquidity event.

Because sales people also do not make money if they don't sell?

What's your counter proposal on how they should pay and attract top sales folks?

I know some sales folks who would love to have $200k base with no variable component: The bad ones.

Every salesperson that I've ever worked with that was worth their salt was worth the commission they made.

[ec109685]

You could say the same thing about paying everyone a flat salary that you attract the middling ones.

And no way all salespeople are worth all the commission they are paid as all times.

You think the quality of Anthropic’s salespeople had much to do with them crushing their numbers as Claude exploded?

Even the most incompetent salesperson could sell their service if it’s currently the best model out there.

While that should increase everyone’s equity, it’s dumb that non-salespeople can’t participate in that abundance.

[jasode]

>The real explanation for why sales people get paid so well is that some really good sales people sold the idea of a highly favorable 'industry standard' model for enterprise sales.

Is there a notable company with enterprise sales that's successful without sales commissions?

Companies in the past have tried a "flat salary no commissions" comp structure for salespeople before and it doesn't work even though intuition seems to tells us that it should. The thinking goes something like... "If salespeople are paid a good salary and therefore aren't under any pressure to meet any quotas to earn a high income, that mental freedom should allow them to sell."

What actually happens is that fixed salaries for sales positions attracts underperformers who can't sell and simultaneously, makes the job not attractive to "rainmakers" who know they're worth more than the fixed salary.

E.g. Pluralsight made the news in 2014 for not paying commissions to salespeople with a list of intuitive-sounding reasons: https://www.inc.com/aaron-skonnard/why-sales-commissions-don...

... But 2 years after that story, they changed their policy and had to pay sales commissions again. They eventually learned what previous companies already figured out: variable pay for salespeople works the best.

[theoryofx]

Yeah no doubt you have to have performance based compensation but that's exactly what equity and bonuses are for everyone else. Sales people are special in getting large amounts of cash comp in addition to equity.

[bcantrill]

Do not walk by their lower base! Sales people can make more -- but they won't unless they crush their number.

[tg76402]

That's because the folks who are buying enterprise technology (aka the economic buyers) for a solution that can potentially cost millions of dollars know if the person attempting to persuade them to do so belongs in that room or not. That is a skill learned over years of negotiation, contracts and legal reviews and executive messaging.

You have to have been in those rooms to acquire the skills that make for successful executive salespeople, and their variable comp is a requirement or you wouldn't be able to staff the team.