Armand Farrokh’s Post

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Author x Founder at 30 Minutes to President's Club | VP of Sales

You can make WAAAAAAAAAAY more money as a rep than as a VP of Sales. (OTE math below) 𝐓𝐡𝐞 𝐦𝐢𝐬𝐜𝐨𝐧𝐜𝐞𝐩𝐭𝐢𝐨𝐧 𝐡𝐚𝐩𝐩𝐞𝐧𝐬 𝐛𝐞𝐜𝐚𝐮𝐬𝐞 𝐭𝐡𝐞 𝐎𝐓𝐄 𝐢𝐬 𝐡𝐢𝐠𝐡𝐞𝐫 𝐚𝐬 𝐚 𝐕𝐏 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬: - A top Enterprise AE will have a $300-350k OTE - A VP of Sales will have a $400-600k OTE   But the key is in the ability to **over-attain** as a rep. 𝐈𝐭 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐚𝐛𝐬𝐨𝐥𝐮𝐭𝐞𝐥𝐲 𝐛𝐨𝐧𝐤𝐞𝐫𝐬 𝐭𝐨 𝐬𝐞𝐞 𝐚 𝐕𝐏 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬 𝐝𝐨 𝟏𝟓𝟎% 𝐨𝐟 𝐭𝐡𝐞𝐢𝐫 𝐧𝐮𝐦𝐛𝐞𝐫. That's because that literally means the entire team blew out their quota by 150%, which probably means your board is either going to promote you to CEO, raise your quota, or call you a massive sandbagger (and raise your quota). 𝐁𝐮𝐭 𝐚𝐧 𝐞𝐧𝐭𝐞𝐫𝐩𝐫𝐢𝐬𝐞 𝐫𝐞𝐩 𝐜𝐚𝐧 𝐝𝐨 𝟑𝟎𝟎%+ 𝐨𝐟𝐟 𝐚 𝐬𝐢𝐧𝐠𝐥𝐞 𝐝𝐞𝐚𝐥 𝐚𝐧𝐝 𝐜𝐫𝐚𝐜𝐤 𝐚 𝟕-𝐟𝐢𝐠𝐮𝐫𝐞 𝐖𝟐. Ian Koniak (Salesforce's #1 all-time producer) told me a story about how he closed a $10M+ deal with Berkshire Hathaway on a couple-million-dollar quota or something like that. That's a lot of ARR in accelerators. Now you get way more *equity* as a VP of Sales, but you never know if that's gonna be real. Want cash? Want freedom? Want job security? Don't become a VP of Sales. Do it because you love the people and you love to build. #sales #leadership

Landon Hobbs

Revenue Maverick for Startups | Full-Cycle AE | Proud Dad

1mo

You’re talking about the top 1% of unicorn AEs. This is hardly commonplace for the overwhelming majority of AEs. Ian is an extreme example of someone who worked for a company that was already during his time one of the most valuable brands in the world, literally anyone in his seat would’ve achieved similar results when you’re handed inbound like candy on Halloween. It’s no where near the reality except for 1/100 reps selling the absolute best solution.

Devin Williams

EQ Proponent | Sales Leader | Connector

1mo

1- IC's should never join a company solely based on equity. or even equity as a high ranking decision criteria. unless you were early snowflake type IC and outcome, life changing money ain't happenin' 2- IF, and a big IF, you were a top producing IC, NEVER go into leadership unless leading, coaching, mentoring and seeing other people's success is a big part of your why and fulfills you 3-Life changing equity opportunity tends to come at 3rd line+ as do the more attractive contract structures of equity grants 4- if a VP of sales' org did 150% average performance, they would likely be closer to 175% of plan. each step up the ladder typically has a hedge. why? because of what you laid out, its very rare to have the aggregate of your teams over perform goals. right or wrong 5- yes, the freedom in your day to day gets more and more out of your control and more demanding the further up you go in leadership if you love what you do, the rest figures itself out. average = average. but great does not always = great. role, timing, company, etc are all critical

Daniel Klein

Data & AI at Databricks

1mo

This is leaving the elephant out of the room. Execs get 10x the equity sellers get. Whether that is at a startup or an established company, equity is what completely changes lives. That being said…becoming a successful vp at a successful company is no easy task.

Are these the same companies that expect 100 cold calls and 100 emails daily? I don't know what you are selling other than call center numbers at that point. I hear about this..and then look at their metrics of them wanting 100 plus phone calls a day. No way are you having meaningful conversations at that point.

Anwar Ghauche

Founder @ Constrafor Construction Procurement w Embedded Financing | Stanford MBA | MIT Engineer

1mo

The thing that a lot of people confuse is they think that managing a sales org should be the natural progression for a stellar sales rep. This couldn’t be more wrong: That’s like saying you’re going to “promote”Michael Jordan to team coach. In terms of comp, talking about early stage companies (Seed to B): - An IC sales Rep should get the bulk of their comp from commissions - An VP Sales / CRO should get the bulk of their comp from equity Emphasis on “should” as in if things are going well. Now if the company is struggling and sales are stalled, it doesn’t really matter who makes more, neither will make enough…

Ian Koniak

I help tech sales AEs perform to their full potential in sales and life with coaching, courses, and community | Sales Coach | Former #1 Enterprise AE at Salesforce | $100M+ in career sales

1mo

I couldn't agree more - if you want time freedom and financial freedom, stay an individual seller. If you get joy from serving, leading, and watching others grow and develop, go into Sales Leadership. But for heavens sake, don't do it for the money.

Konnor Andersen

Vice President, WW Sales & Channels | I build sales and channel partnership teams at global scale and am sharing everything I learn along the way

1mo

Sadly wayyyyy to many money motivated folks are pushed into sales leadership roles when they would be much more satisfied with AE roles aligned to the comp goals they have! They are just at the wrong company where top AE's aren't comp'd the right way! Sadly it can de-rail's your whole career...

Patricia Wooster

I help experts write books and design cohorts. 💫 19x Bestselling author, 150+ book coaching clients since 2016, cohort creator, & strategist. Future-proofing executives, entrepreneurs & consultants.

1mo

This is so true. When I was in enterprise software sales no one wanted management positions if they were killing their quota. High-level reps often have high autonomy and only need to worry about their own numbers. If they can blow out quota working 5 minutes a week (total exaggeration) then that’s okay.

Corentin Le Reun

Enterprise Sales Leader @Cisco Security 📈 | MBA Guest Lecturer 🎓 | Leadership Podcaster 🎙️

1mo

“Do it because you love the people and you love it build” -> yeees exactly However, while the elite rep will usually have the highest cash payout, don’t underestimate the value of the VP’s equity

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