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Dear SaaStr: What is a Normal Commission for an Account Exec as a Percentage on Revenue of a Deal?

  • For SaaS account executives, commissions typically range from 8-10% of the first-year Annual Contract Value (ACV) of a deal.
  • This is standard for inside sales reps working on mid-market or enterprise deals. Smaller deals or lower-margin businesses may have lower commissions.
  • Total compensation for an Account Executive usually ends up being about 20-25% of the revenue they close annually.
  • Paying much more than 25% can be unsustainable without heavy subsidization.
  • The best reps often close 4-5x their On-Target Earnings (OTE) at scale.
  • If an AE has a $150k OTE, they are expected to close $450k-$600k in ACV annually.
  • Structuring a comp plan should consider these factors to avoid overpaying or underperforming.

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