What is the range of MRR/mo an account executive brings in at an early stage B2B SaaS company with less than 1mil ARR?

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JASON LEMKIN

Let’s work backwards.

At a $45k or so ACV, that’s “high-end transactional” sales. These reps >at scale< usually should be able to hold quotas from $600k-$800k or so.

At scale. But you aren’t there today. You are at <$1m ARR. But you have customers and revenue. You have an engine. It’s repeatable. It’s just not repeating yet.

So at this phase, I like to break it down like this:

For the first sales cycle, I like the rep to cover her costs. So if her OTE is say $140k, I want her to bring in at least $35k in bookings in say the first 90 days. For you, that’s just one deal at a $45k ACV so maybe she can bring in at least 2, ideally 3.

If it’s really early (say just $5k or $10k ACV), you can even make this a goal for longer. But you’re at $1m ARR. So after that first sales cycle …

From Days 60–150 or so, maybe 180, I’d like her to be profitable. So at least $350k quota.

After that, she should be able to hit full quota, $600k-$800k. After all, with just 1 or 2 reps, they are getting >all< the leads.

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Published on September 5, 2016
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