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What’s an appropriate commission % for a first sales rep if they’re getting a cash and/or equity base?

J
Written by Jasmine Sunga
Updated over 5 years ago

5-8% if the cash and equity compensation is par market compensation.  Other factors also come into play like sales quotas, size of the deals, term of the deal, account management etc. If you’re paying cash + equity - only give commission if they hit their sales quotas.

also remember, the first year (or till you have established model)  sale is going to be slow, so the sales person will not make a lot just by commission. So you have to balance it by cash, equity and commission. And change the equation after year or so when you have more predictable pipeline

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