All things being the same, would you rather have a 30/70 sales plan or a 40/60? base/commission.?

Question

Considering a new job offer here and trying to decide. If you are at quota at 100%, both plans would be equal. If you exceed quota, 70% plan seems to be better. Thoughts?

Answer 1

If both plans are equal at 100% of the quota you are basically at risk for 10% of your earnings.

The 40/60 plan has 0 risk on 10% of your base and no upside.

The 30/70 plan has downside risk below quota and upside over the 100 % quota level.

Conclusions
10% is not a lot of incremental risk and this is the difference between the two plans.

You are at risk already for 60% of your base salary so if you absolutely need the money then going to the 30/70 plan might not be advisable -- your call based on your financial needs

I assume that you feel you can do this job and do it well. If you fail miserably they will fire you and it really will not matter long-term which plan you take. Taking the 30/70 plan shows to management you feel you can succeed and are willing to bet on yourself. On the 10% at risk you have all upside over quota and a chance to maximize your earnings -- go for it!

Answer 2

I would go for the 40/60 because I have kids and other Responsibilities so I would like to know that I have more financial stability. However if the product is not seasonal and there is a good customer base and you're a good salesperson you could choose the 30/70 - I'm a really good salesperson and I would choose the 40/60 though.

Answer 3

Two questions: can you exceed the 70% quota? If yes, then what is stopping you from taking that option? You yourself said that the 70% plan seems better.

Answer 4

go for the 70 percent and work real hard. If you're above quota, you'll make more money. If you're below quota, perhaps you shouldn't be in sales at that company.