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Saastr

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Dear SaaStr: How Are VP of Sales Commissions Normally Structured?

  • VP of Sales commissions in SaaS are typically structured around a 50/50 On-Target Earnings (OTE) model.
  • Base salary constitutes 50% of OTE, while the remaining 50% is variable and tied to specific revenue or ARR targets.
  • Upside for overperformance is common, with uncapped commissions available if targets are exceeded.
  • Monthly or quarterly payouts are standard to promptly reward performance, and equity negotiations are common for VPs of Sales.

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