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Commission split SDR - AE

How do you currently work the commission for your teams - we are about to hire our first SDR and are considering a few ways this could work. I wanted to reach out and see what works for you already. I like the following for SDR:
1. Booked demo - fixed amount
2. % of closed won deal value

AE
% of closed won deal value (accelerators for milestones)

What other ways should we consider?

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    • 2
      Profile picture of Vijay P
      @vj_for_community
      ( 1.4k POINTS )
      2 weeks, 3 days ago

      Hi @wayne, you can consider special MILESTONE BASED COMMISSIONS or RIDERS as well for SDR/AE. Ex- If you tie commissions to the deal size (something which will help you close numbers fasters & increase your MRR), it will motivate the SDR’s & AE’s to focus on certain deal value & earn more than the regular commissions.

    • 1
      Profile picture of Emmet
      @emmet
      ( 315 POINTS )
      2 weeks, 1 day ago

      What I’ve seen work at a few customers now is for SDR’s to be comp’d on a combination of booked meetings (fixed amount as you rightly point out) and the overall revenue goal for the team so in other words if the sales team hits quota the SDR’s get a piece of commission.The SDR variable % isn’t tied to a single deal it’s tied to the overall number.

    • 1
      Profile picture of BrendanPfahlert
      @brendanpfahlert
      ( 235 POINTS )
      2 weeks, 1 day ago

      We do fixed $ for meeting booked + 1% for SDR’s. 8% for AE’s.

    • 1
      Profile picture of Ian Moyse
      @ianmoyse
      ( 345 POINTS )
      1 week, 6 days ago

      Thats How i work it a fixed payment of £ per booked lead (but only pem on it once its sales accepted ie sales has to speak to the customer and say yep that was qualified and was right to come to me) which i track in a sales accepted field with sales accepted date field in CRM so can easily run end of month report on those created and accepted to pay them on. Then a % of the deal value that closes as a reware for creating ones that create revenue.

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