Should you pay the same comp to folks, no matter where they work now? A complex topic.
But one thing is clear: the vast majority of sales leaders I've talked to are continuing to localize comp
Why? They always have. It's not new.
What is new is where the top AEs work
But one thing is clear: the vast majority of sales leaders I've talked to are continuing to localize comp
Why? They always have. It's not new.
What is new is where the top AEs work
The common pattern pre-Covid was to build up your core, expensive AE team first in SF Bay Area
And then move at least SMB sales, SDRs, etc. to a lower cost center like Phoenix, Portland, Atlanta, Florida, etc.
But now, top AEs are scattered across U.S.
And then move at least SMB sales, SDRs, etc. to a lower cost center like Phoenix, Portland, Atlanta, Florida, etc.
But now, top AEs are scattered across U.S.
The short-term effect is that an AE in the Bay Area often makes more than an AE hitting the exact same quota in say Denver (to adjust for COL and competition)
But what will 2021/2022 bring?
There will be more pressure not to pay Bay Area AEs 20%+ more vs. closers anywhere else
But what will 2021/2022 bring?
There will be more pressure not to pay Bay Area AEs 20%+ more vs. closers anywhere else
Learning to sell remotely, without floors and floors on AEs based in SF, has changed things
How much it has changed the "Bay Area premium" for AEs remains to be seen
At a minimum, there will be fewer of them as a % of the overall sales team in many cases
How much it has changed the "Bay Area premium" for AEs remains to be seen
At a minimum, there will be fewer of them as a % of the overall sales team in many cases
A broader conversation on distributed sales teams post-Covid here with Brex's CRO:
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