At ElevenLabs, top-performing account executives refuse salary increases, preferring equity instead. A higher base salary would increase their 20x quota, making it harder to reach the lucrative 1.5x and 2x commission accelerators for overperformance. This is a powerful, non-obvious incentive alignment.
VP of Sales Carles Reina sets a sales quota of 20 times a rep's base salary (e.g., $2M quota for $100k base), far above the 6-10x industry standard. Reps who don't hit their quota are let go, creating a high-performance culture where over 80% succeed.
To maximize earnings, salespeople shouldn't just passively accept a comp plan. They should actively engage with the compensation team or their manager to understand the plan's underlying business intent. This proactive approach uncovers the true priorities and reveals the most effective path to higher earnings.
By fixing the upfront cash collection, the business generates enough surplus to potentially double sales commissions from $50 to $100 per deal. This elevated pay structure attracts a completely different caliber of salesperson—"an order of magnitude better"—who can close more deals per day, dramatically accelerating growth without adding financial risk.
To maximize expansion revenue, ElevenLabs compensates both the original Account Executive and the Customer Success Manager for any upsell within the first 12 months. This dual-incentive structure keeps the AE engaged post-sale and aligns both roles towards aggressively growing the account.
Bali structures its AE compensation with a 4:1 ratio of new ARR to on-target earnings. AEs with a quota of about $1M in new ARR can earn $250k ($75-100k base + $150k commission). This model ensures the sales function is a profitable growth engine for the bootstrapped company.
Don't finalize a comp plan in an executive silo. Share the draft with trusted, top-performing reps and ask them to break it. They will immediately spot loopholes and unintended incentives, allowing you to create a more robust plan that drives the right behaviors from day one.
Instead of treating high commission payouts as a pure expense, view them as a marketing asset. Actively ensuring it's known that top reps make a lot of money serves as the best possible recruiting tool, attracting other A-players to your company.
Forgo traditional sales commissions at early-stage companies to incentivize what's best for the business, not just the individual. By offering a competitive salary and strong equity instead, salespeople are motivated to help with onboarding, cross-functional projects, and team building without seeing it as a financial loss.
Smaller, founder-led businesses are often more resistant to increasing fixed costs like base salaries. Instead, propose a higher variable commission rate. This shows you're willing to bet on your own performance and aligns your incentives with the company's revenue goals, making it an easier negotiation for leadership to approve.
Instead of directly asking for a raise, top salespeople should request better opportunities like bigger accounts or higher-quality leads. This frames the conversation around driving more revenue, which speaks a sales manager's language and demonstrates a focus on performance over entitlement, making it a more effective negotiation tactic.