You're going to pay me what?!

April 22, 2008 11:52 AM

What are commission structures like for software sales reps?

It would be a business to business environment and I would be 100% commission. Its an employee documentation software. Thanks in advance!

posted by curlyelk to work & money (4 comments total)

Is there a reason you can't call them and ask what the structure is?
posted by Tomorrowful at 1:27 PM on April 22

Tomorrowful: I imagine he can, but wants to make sure that his prospective employer is paying the going rate. (Unfortunately, what that is I haven't the slightest idea.)
posted by goingonit at 3:31 PM on April 22

I sell software b to b, but I don't do it on straight commission. I would never sell somebody else's product on straight commission. Why should you absorb 100% of the risk? The software might suck. It might be overpriced. They might be crappy a marketing. They might be bad at after the sale service. They might screw up delivery and cost you a deal after the fact. There are thousands of things that you have no control over that can affect your income. If for some reason I was going to absorb that kind of risk I'd want one hell of a payoff for doing it.

Without knowing the deal size and sales cycle there is no way to even guess at an appropriate commission rate, but it needs to be damn high to compensate you for the risk. They are in effect asking to accept all the downside of self employment with none of the benefits.
posted by COD at 4:28 PM on April 22

Aye, agreed with COD. I have spent a career in B2B sales and marketing and I do not work for commission-only. The company wants me to commit to them but they don't want to commit to me? Phooey on that.
posted by Tacodog at 4:41 PM on April 22