The Industry Standard Salary for SaaS AE’s

The Industry Standard for AE’s follow this formula (according to this research report interviewing 300 SaaS companies)
The Magic Formula

Quota should be 5X OTE  
Example 1

$100K base salary

$200K OTE

$1mil ACV Quota


Example 2 – more junior person

$50k base, $100K OTE, $500K ACV Quota

So what?
– If you ask a SaaS AE what their quota is, you can likely calculate what their salary is 

If you are negotiating a salary and they give you a quota that is 10x your OTE, say no! You’re being unfairly compensated for the difficulty of the role.

The reason for this proportion is because paying you 20% of revenues leaves your company enough room to still make profit. Also, this is for net new customers, not for renewals.


I’ve talked to salespeople at Splunk, Qualtrics, other cloud companies, etc. and the salespeople there all earn an amount consistent to this formula.


To gather enough skills to become qualified to get an AE job I’d say takes 3-4 years of experience from graduation.

But once you have those skills, you can pretty much go to any SaaS company (anything on the Forbes Cloud 50 list) and get a salary package like the one above

The Coronavirus Is Helping These Two Companies While Sinking These Two Companies

Major world events have a polarizing effect on stock prices. While everyone is panicking about the coronavirus, each night I am taking a step back and looking at it from a business perspective to think about – which companies are gaining new customers from this, and which companies are losing customers from this?

My Stock Analysis…

Over the past 41 days (Jan 24 2020 – March 6 2020), the S&P decreased -9% while…

🟢 Gaining

👉 APT – this company sells surgical masks so their stock has skyrocketed 600% then settling near 206% most recently

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👉 INO – this company is speculated to be developing a coronavirus vaccine so their stock has increased 115%

👉 $ZM (Zoom Video Communications) has gone up 70% (Counting Jan 24-March 6th movement) as people speculate they will have more customers as everyone is working from home. Make sure you are not looking up $ZOOM which is a separate company.

🔴 Losing

👉 RCL – Royal Carribean Cruiseline stock has decreased 42% anticipating a decrease in passenger sales for the next couple quarters. Similar impact on CCL (Carnival Cruiselines)

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👉 AAL – American Airlines is down 42%, anticipating a decrease in ticket sales because people don’t want to fly

I believe there is a cause-and-effect relationship here.

So Are Market Speculators Using This Information To Make profits?

Yes! In a very outrageous example, here’s a guy who purchased $700,000 worth of options and has an unrealized profit of $900,000 within a week 😲

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Original post viewable on /r/WSB while profit calculation here: /r/WSB/post

Yeah, that subreddit doesn’t call themselves “Wall Street Bets” for no reason.

Did I bet on this information? Well, I put $100 into one of the above a week ago and made $50 then got out. There’s a saying I like to follow “Keep your learnings before your earnings”, so it’s good to practice with small positions before taking on real risks.

I hope that you learned something too 🙂

For my previous post on Coronavirus stocks: URL

My Request

👉 If anyone reading this has traded options before or enjoys speculating based on market psychology, please message me! I’d love to chat and see what we can learn from each other 😊

👉 Know someone who can relate? Feel free to tag or comment below.

“Cracking The Sales Case Workshop” with Ryan Ing & Taz Ishraque Feb 2020

On February 2020 I volunteered to lead a workshop to help students prepare for a sales competition. Here was my opening line:

“This workshop will be different from others in three ways.

1. There will be no powerpoint.

2. I want to get to know all of you as much as you will all get to know me.

3. We will be doing live roleplaying. You will learn by doing!”

Following that, I let every student speak to briefly introduce themselves and explain their WHY. Then, I roleplayed live a mock sales call with my partner Taz and prompted students to explain their observations.

After that, I handed out a sales case where students take the role of an IBM Seller selling a data analytics solution to a call center.

Lastly, students broke off into groups to practice, and for the one brave soul, he presented in front of the class!

Here was his recap of the experience:

Here is what another student, Xhona had to say:

Here is what the organizer had to say about working with me:

For anyone looking for a highly interactive sales workshop where students walk away with tangible skills/practice. Feel free to email me and we can discuss.

Coronavirus Stocks Are Like The New Cannabis Stocks.

Corona virus medical stocks are like the new cannabis stocks.

On January 21st the World Health Organization began to investigate if the virus was a public health emergency or not.

Since that day, certain companies have seen their stock prices skyrocket (🚀📈50% in one week) on speculation of creating a vaccination or increased sales of medical equipment (surgical masks, for example)

Example companies: $INO, $LAKE, $APT

In 2018 we saw cannabis stocks hyped up daily by the media. Some companies had fundamentals to back up their valuations, and some did not. A year later, after the speculation and media hype cleared away, some companies were left standing on their firm foundation and some dissolved like sandcastles in the rain. E.g. TLRY & CTST down -95%

The effect that world news can have on the valuation of companies is very intriguing.

Cause & effect is a beautiful thing.

This is not investment advice, but if you’re a risk-seeking speculator feel free to ping me.

Img credits: Contratheheard.com

#Stocks #CoronaVirus

How to Cold Email / Run A Coffee Chat Workshop (Nov 2019)

Last Winter I hosted a workshop for first-year business students at Ted Rogers School of Management at Ryerson University on how to cold email and how to run a coffee chat. Here were the results:

(A majority of the 50+ students sent out emails, more than half received replies, and a handful forwarded the results back to me)

To gain the confidence to introduce yourself to someone new takes time. To find the right mentors to support you takes time as well. Together, both are fundamental soft skills that give an aspiring businessperson the tools for success.

Thank you to the 40+ contacts who volunteered to offer advice to students 👏

👉 Thursday I’m hosting another workshop where I’m giving a few students LinkedIn Profile Makeovers, haha. Along with some tips on writing bios/headlines/networking with others. Ping me if you want any more details or help.

#BreakthroughProgram #TRSM

B2B Tech Sales Landscape

Do you want to work in tech sales but are not sure which company you want to work for? Here’s how we can categorize tech companies into 4 quadrants.

Media Darlings

  • They are called darlings because everyone LOVES the brand and wants to work there. These companies make most of their money from selling advertising (E.g. Google makes 80% of its revenue from Google Ads), hence “media”.
  • Pros: Best brand name, your employability skyrockets. Generally cool products
  • Cons: These companies do not typically have established new grad programs, they usually poach experienced hires from other companies.

Old Guards

  • These companies have proven themselves, have 50+ years history, and household names. They are generally market leaders in the product areas.
  • Pros: High pay, long training program (6 months), brand recognition
  • Cons: Culture can be lacking. A lot of company processes and bureaucracy

Midmarket

  • These companies have a market capitalization of $100mil-$5bil. So they are not startups but they are more established.
  • Pros: Often have really cool culture. Shopify/Salesforce consistently win top employer awards in Canada
  • Cons: Usually restricted to Inside Sales roles. Because the company is still scaling, mostly 100% outbound cold calling for entry-level.

Work Horses

  • These are companies that are solid employers (often on Best Employers List), however are often resellers of other companies products / companies that are not perceived to be market leaders, so do not benefit from the same powerful brand image that other companies have.
  • Pros: Great training
  • Cons: A lot of outbound cold calling due to poor brand recognition

Other/Related

  • These companies are in the technology space but work on slightly different business models. Teksystems is really in the staffing business but places for technology roles. Also good choices, but I don’t have much information available.

Movement Between the Quadrants – Here’s the magic!

  • It is easier to make a horizontal move than vertical one. Generally speaking if you get a job at Google, it’s easy to land an interview at IBM or Shopify. But if you get a job at Xerox, it will require some work to land yourself an interview elsewhere.

This was originally taught to me from Asad Zaman, from Sales Talent Agency. Credits to him.

The Differences Between B2C Sales and B2B Sales

In this post I will help educate you on differences between B2C (Business To Consumer) Sales and B2B (Business to Business) Sales.

It’s the difference between working as a Real Estate Agent selling homes to families, and working in Commercial Real Estate for CBRE selling offices and buildings to businesses.

It’s the difference between working as a Teller in a bank (Retail Banking) vs working as Equity Research Analyst on the Sell Side (Investment Banking).

Selling cellphones at Best Buy is completely different from selling business software at a B2B Technology company.

Different Types of Sales

B2C SalesB2B SalesEnterprise Sales
Problem solving/ProductsSimple problemHelping businesses Save time/moneySolving complex business problems
“Consultative sales”
StyleEmotionalLogicalEmotional + Logical + Business Case
Sales Cycle (length of deal)Hours, within a dayWeeksMonths
“Triple decker”
TrainingOn-the-jobWeek-longSix-month longs
Pay100% commissionBase + commission40k + 20k typical for new gradsBase + commission
50-60k base + 15-20 typical for new grads
CultureOften students or non-university graduatesSexy startup, cool perksNot as cool, but generally cushy
Cold calling?100% prospecting80% prospecting20% inbound/account management20% prospecting80% inbound / account management
ClientsAny joe blowBusiness ownersF500, large businesses

Legal Training For Door-To-Door Salespeople

As part of our training I’m learning some of the laws around working with door-to-door salespeople.

  • If you knock on a door that has a no-solicitation sign, that is considering trespassing.

NoSoliciting

  • Door-to-door salespeople have to be licensed by the province. They must show their license upon request. Usually they are wearing an ID card around their neck.
  • If you tell a salesperson to leave – they must leave your property immediately.
  • All contracts have a 10 day full-refund policy by law. Therefore, no one is really obliged to ‘make a decision on the spot’.
  • We are not allowed to use the term “free”

Fine Structure of other stuff we are not allowed to do.

FineStructure

Source: Vivint.com