An SDR typically earns 2-5% commission. An enterprise Account Executive can earn 10-15%. But what's right for your organization?
Commission rates aren't just about numbers. They're about designing incentives that drive exactly the behavior you need. When you understand benchmarks for each role, you can build a compensation structure that motivates your entire sales team—from the newest SDR to your VP of Sales.
This guide covers commission rates, pay mix, and OTE for every role in the sales organization. You'll get concrete benchmarks based on 2024-2025 data from Bridge Group, RepVue, Pavilion, and other authoritative sources.
Before we dive into each role, here's the big picture of how commission breaks down across the sales organization:
| Role | Pay Mix (Base:Variable) | Commission Rate | Typical OTE |
|---|---|---|---|
| SDR/BDR | 65/35 to 70/30 | 2-5% or per-meeting bonus | $65,000 - $95,000 |
| Account Executive (SMB) | 50/50 | 10-12% of ACV | $100,000 - $140,000 |
| Account Executive (Mid-Market) | 50/50 | 8-12% of ACV | $150,000 - $200,000 |
| Account Executive (Enterprise) | 50/50 to 60/40 | 5-8% of ACV | $220,000 - $300,000 |
| Account Manager | 60/40 to 70/30 | 5-10% (renewal/upsell) | $85,000 - $150,000 |
| Customer Success Manager | 80/20 | Bonus on retention/NRR | $75,000 - $120,000 |
| Sales Manager | 60/40 to 70/30 | 1-3% team override | $140,000 - $190,000 |
| Sales Director | 60/40 to 70/30 | 2-4% team override | $165,000 - $235,000 |
| VP of Sales / CRO | 60/40 to 70/30 | Org attainment + equity | $200,000 - $350,000+ |
These figures are based on international SaaS benchmarks. Note that European companies typically have a more conservative pay mix (60-70% base salary) compared to US standards (50/50).
Sales Development Representatives (SDR) and Business Development Representatives (BDR) are the front line of your sales organization. They qualify leads and book meetings for Account Executives. Their compensation should motivate high activity and quality in pipeline generation.
The SDR role typically has a more conservative pay mix than Account Executives:
| Experience Level | Pay Mix (Base:Variable) | Rationale |
|---|---|---|
| Entry-level (0-1 years) | 70/30 | More stability during training |
| Mid-level (1-2 years) | 65/35 | Balanced structure |
| Senior (2+ years) | 60/40 | Greater earning potential |
According to Bridge Group's 2024 SDR Metrics Report, the median is 64% base salary and 36% variable. Alexander Group recommends 70/30 as the optimal balance between security and motivation.
SDR commission can be structured in several ways:
| Metric | Typical Bonus/Commission | When Used |
|---|---|---|
| Meeting booked | $20-50 | Focus on activity |
| Meeting held | $50-100 | Focus on quality |
| Qualified opportunity (SQL) | $100-250 | Focus on pipeline quality |
| Percent of closed deal | 0.5-4% | Alignment with revenue |
Best practice is to tie a maximum of 25% of variable pay to downstream revenue. The rest should be based on activities the SDR directly controls.
Here are typical OTE ranges for SDR roles:
| Level | Base Salary | OTE | Monthly Quota |
|---|---|---|---|
| Entry-level | $45,000 - $55,000 | $60,000 - $75,000 | 12-15 meetings |
| Mid-level | $55,000 - $65,000 | $80,000 - $95,000 | 15-20 meetings |
| Senior | $60,000 - $75,000 | $90,000 - $110,000 | 18-22 meetings |
| Enterprise SDR | $65,000 - $80,000 | $100,000 - $120,000 | 8-12 qualified meetings |
The average ramp time for SDR is 3.2 months according to Bridge Group. During the ramp period, SDRs typically operate at 50% quota while receiving 100% of base salary.
Accelerators for SDR typically kick in at 100% quota attainment:
SPIFF programs (short-term incentives) can drive 15% short-term sales increases according to industry data. Typical SPIFFs for SDR include bonuses for booking meetings with specific target segments or new product lines.
Show your reps their commission in real-time
When SDRs can see exactly how much they're earning on each meeting, it fundamentally changes motivation.
Book a demo →Account Executives (AE) are the ones who close deals and drive revenue directly. Their compensation is typically more aggressive than SDR with a higher variable component and direct linkage to revenue.
AE pay mix varies by which segment they sell to:
| Segment | Pay Mix | Sales Cycle | Rationale |
|---|---|---|---|
| SMB | 50/50 to 55/45 | 1-3 months | High volume, fast feedback |
| Mid-Market | 50/50 | 3-6 months | Industry standard |
| Enterprise | 50/50 to 60/40 | 6-12+ months | Longer cycles require more stability |
Bridge Group's 2024 benchmark shows a median of 53% base salary and 47% variable for AE roles.
The average commission rate for Account Executives is 11.5% of ACV according to Bridge Group 2024. Here's how it breaks down by segment:
| Segment | Commission Rate | Typical Deal Size |
|---|---|---|
| SMB | 10-15% | <$25K ACV |
| Mid-Market | 8-12% | $25K - $100K ACV |
| Enterprise | 5-8% | $100K+ ACV |
Lower rates for enterprise are compensated by larger deal sizes. An AE who closes a $200K ACV deal with 6% commission earns $12,000—more than an SMB AE who closes a $15K deal at 12% ($1,800).
The quota-to-OTE ratio tells you how much an AE needs to sell for every dollar they earn. The median in 2024 is 4.2x according to Bridge Group:
| Segment | Quota:OTE Ratio | Example |
|---|---|---|
| SMB | 3x-4x | $130K OTE = $390K-$520K quota |
| Mid-Market | 4x-5x | $175K OTE = $700K-$875K quota |
| Enterprise | 5x-6x | $260K OTE = $1.3M-$1.56M quota |
Median annual ACV quota has risen to approximately $800K (up from $740K in 2022) according to Bridge Group.
| Segment | Base Salary | OTE | Quota Attainment |
|---|---|---|---|
| SMB AE | $65,000 - $80,000 | $105,000 - $140,000 | 42% hit quota |
| Mid-Market AE | $85,000 - $100,000 | $155,000 - $200,000 | 38% hit quota |
| Enterprise AE | $120,000 - $180,000 | $230,000 - $320,000 | 36% hit quota |
| Top Enterprise | $145,000+ | $300,000+ | Top performers |
A concerning trend: only 51% of AEs hit their quota in 2024 (down from 66% in 2022) according to RepVue. This indicates quotas are often set too aggressively.
82% of SaaS startups use accelerators, and less than 15% have commission caps. Here's a typical structure:
| Attainment Level | Commission Multiplier | Example (10% base rate) |
|---|---|---|
| 0-50% | 0.5x (decelerator) | 5% commission |
| 50-100% | 1x | 10% commission |
| 100-125% | 1.5x | 15% commission |
| 125-150% | 2x | 20% commission |
| 150%+ | 2-4x (kicker) | 20-40% commission |
Research shows accelerators increase revenue by 13-17% compared to plans without accelerators. Rep satisfaction increases from 45.2% to 72.8% when accelerators are part of the plan.
53% of SaaS companies use clawback clauses. Typical clawback periods:
Companies with clawbacks see up to 15% reduction in churn as reps qualify customers better.
Account Managers (AM) focus on retaining and expanding existing customer relationships. Their compensation should balance retention with expansion.
AM typically has a more conservative pay mix than AE since they work with warm leads:
| AM Type | Pay Mix | Focus |
|---|---|---|
| Hunter AM (growth focus) | 50/50 | Upsell and expansion |
| Farmer AM (retention focus) | 70/30 | Renewal and customer satisfaction |
| Hybrid AM | 60/40 | Balanced retention/growth |
| Activity | Commission Rate | Rationale |
|---|---|---|
| Renewal | 5-7% of ARR | Lower rate since it's existing revenue |
| Upsell | 7-10% of ACV | Higher rate for new revenue |
| Expansion | 2-6% with accelerators | Varies by product |
| Cross-sell | 10% | Same as upsell in many organizations |
The typical breakdown of variable compensation is 60% retention and 40% expansion. At least 70% of variable pay should be tied to retained revenue.
| Segment | Base Salary | OTE |
|---|---|---|
| SMB AM | $55,000 - $70,000 | $90,000 - $120,000 |
| Mid-Market AM | $70,000 - $90,000 | $120,000 - $160,000 |
| Enterprise AM | $90,000 - $120,000 | $145,000 - $200,000 |
Customer Success Managers (CSM) typically have the most conservative pay mix in the sales organization. Their compensation focuses primarily on retention and customer satisfaction rather than direct sales.
CSM has an average of 83% base salary and 17% variable in the US:
| CSM Type | Pay Mix | Variable Focus |
|---|---|---|
| Retention-focused | 85/15 | GRR, CSAT, health scores |
| Hybrid (retention + upsell) | 75/25 | NRR, expansion |
| Expansion-focused | 70/30 | Upsell, cross-sell |
When CSM quotas exceed 30% of their OTE, they risk becoming a secondary sales team. This makes it difficult to prioritize customer interests over sales targets.
CSM bonuses are often tied to:
| Metric | Typical Target | Bonus |
|---|---|---|
| GRR (Gross Revenue Retention) | 90-95% | 2-4% of retained ARR |
| NRR (Net Revenue Retention) | 100-120% | $5,000 for hitting 95% target |
| CSAT | 85%+ | $500-2,000/quarter |
| Health score improvement | 10% improvement | $3,000 |
Net Revenue Retention measures the total change in revenue from existing customers including expansion and churn:
| Segment | Target NRR | Assessment |
|---|---|---|
| SMB-focused SaaS | 100-115% | Acceptable |
| Mid-Market | 110-120% | Good |
| Enterprise | 120-150% | Strong |
| Pre-IPO/Mature | 120%+ | Expected by investors |
57% of CS teams using a CS platform achieve NRR over 100% according to ChurnZero's 2024 Leadership Study.
| Level | Base Salary | OTE |
|---|---|---|
| Entry-level CSM | $55,000 - $70,000 | $70,000 - $90,000 |
| Mid-level CSM | $80,000 - $100,000 | $100,000 - $130,000 |
| Senior CSM | $100,000 - $130,000 | $130,000 - $160,000 |
| Director of CS | $130,000 - $160,000 | $145,000 - $200,000 |
Stop manual commission calculations
With multiple roles and complex bonus structures, the risk of errors grows exponentially. Automation eliminates this.
Book a demo →Sales leaders have a fundamentally different compensation structure than individual contributors. They need to be motivated to develop their team, not just chase their own numbers.
| Level | Pay Mix | Variable Breakdown |
|---|---|---|
| Sales Manager | 60/40 to 70/30 | 65-75% team, 10-20% company, 5-15% individual |
| Sales Director | 60/40 to 70/30 | Team performance + strategic KPIs |
| VP of Sales | 60/40 to 70/30 | Org attainment + equity |
As you move up the leadership hierarchy, the base salary percentage increases to reflect broader management responsibilities beyond direct sales.
Override commission gives leaders a percentage of all sales their team closes:
| Role | Override Percent | Structure |
|---|---|---|
| Sales Manager | 2-3% | Flat rate on team sales |
| Regional Director | 3-4% | Tiered: 2% under $500K, 4% over $1M |
| District Manager | 1.5% | Override on all districts |
If a rep earns 10% commission, the manager typically earns 2-3% override on the same sale. The total commission level is therefore 12-13%.
A common problem is top-performing reps earning more than their managers. Solutions include:
| Role | Base Salary | OTE |
|---|---|---|
| Sales Manager | $110,000 - $150,000 | $145,000 - $200,000 |
| Sales Director | $130,000 - $175,000 | $175,000 - $245,000 |
| VP of Sales | $145,000 - $215,000 | $215,000 - $360,000 |
| Senior Enterprise Sales Manager | $185,000 - $260,000 | $260,000 - $360,000 |
At early startup stages, equity makes up a significant part of compensation:
| Role | Series A | Series B | Later Stage |
|---|---|---|---|
| VP of Sales | 1.5-3% | 0.5-1.5% | 0.3-0.8% |
| Director | 0.4-1.25% | 0.2-0.7% | Lower |
| Manager | 0.2-0.33% | Lower | Minimal |
Standard vesting is 4 years with a 1-year cliff. Expect 10-25% dilution per funding round.
An effective ramp period is crucial for setting new reps up for success.
| Role | Typical Ramp | Compensation During Ramp |
|---|---|---|
| SDR | 90 days | 100% base, 50% quota |
| AE (SMB) | 3-4 months | Guaranteed commission or reduced quota |
| AE (Mid-Market) | 4-6 months | Progressive quota: 33%, 66%, 100% |
| AE (Enterprise) | 6-12 months | Draw against future commission |
Formula: Sales cycle + 90 days + onboarding/training = ramp time
Research shows that formal onboarding programs deliver:
The cost of poor onboarding can be up to 3x an employee's base salary, and delayed ramp can account for up to 5% in annual revenue loss.
Effective compensation isn't just about numbers. It's about understanding what motivates people.
Research from Harvard Business Review shows that when employees have realistic reference points for pay, their satisfaction increases. Before SEC requirements for CEO-to-median pay disclosure, employees relied on gossip and incomplete online data, often overestimating colleagues' pay.
Less than 10% of US companies believe their sales incentive plans consistently drive the desired sales behavior according to Harvard Business School.
Research shows that:
Data shows accelerators have measurable impact:
| Metric | Effect |
|---|---|
| Revenue increase | 13%+ higher with accelerators |
| Rep performance | 9.5% increase |
| Multiple accelerators | 17% sales increase |
| Rep satisfaction with accelerators | 72.8% vs. 45.2% without |
Research shows caps hurt sales performance:
Only 15% of SaaS companies have commission caps. Alternatively, 30% use decelerators and 28% use mega-deal policies.
A survey of 450+ Finance, RevOps, and Sales professionals shows that 97% report challenges with their compensation plans.
| Challenge | Percentage |
|---|---|
| Unrealistic expectations | 19% |
| Fails to motivate reps | 19% |
| Too complex to execute | 18% |
| Too complicated to understand | 17% |
| Fails to drive CAC efficiency | 14% |
With this guide, you now have benchmark data for every role in the sales organization. Here are the key takeaways:
The most important thing to remember is that commission isn't just numbers. It's a tool to drive the behavior you need. When your reps can see exactly how their effort translates to pay—in real-time—it fundamentally changes motivation.
Commission that actually motivates
See how Prowi gives your sales team transparency in their compensation with real-time notifications on every closed deal.
Book a demo →