News and advice for software sales professionals and employers.

Reasons for Compensation Confusion

A few of the main causes of confusion about compensation.


Today we’ll talk about some of the misinformation and confusion around compensation that’s circulating these days.


The most common cause for confusion about compensation is that many people are contacted via email and Linkedin about opportunities for which the quoted compensation is a lot higher than they can likely expect to get. This is generally either because the company’s doing a mass outreach to try to figure out who’s actually qualified for the role after the fact, or you might be getting contacted by a junior recruiter who doesn’t understand the specific experience requirements. That can leave somebody thinking that’s the kind of compensation they should be looking for when, in fact, they could be really mismatched with the ideal candidate’s background and experience.


“The rigidity of requirements rises dramatically along with compensation.”


The second most common cause for confusion is when some companies have a very high base salary because they know that their OTE is unattainable, and virtually no one on their team is reaching that. Increasing the base salary to compensate is just what companies have to do to get decent talent.


You can always get the best compensation by going to a direct competitor. If that company sells a similar product to a similar set of buyers, your likelihood of maximizing your compensation rises dramatically. Additionally, the rigidity of requirements rises dramatically along with compensation.


Below a certain point, companies are just interested in strong salespeople with a few years of experience, but they’re not very concerned with the exact nature of the product or service they’ve been selling or who they’ve been selling to. Once you get above a certain amount, the requirements become much more rigid and specific and won’t be open to just a really good salesperson. They want somebody who sold very similar or identical types of solutions to a very similar customer base.


If you have any questions, don’t hesitate to call or email us. We look forward to hearing from you. Happy job hunting.