33% of AE’s pipeline is from marketing. “This includes inbound SDR support and excludes outbound sales development efforts.” That means the other 67% needs to be filled by outbound efforts of the AE and SDRs. As ARR and ACV grows, marketing contributes a smaller fraction of pipeline.
Specialization of the sales effort. “59% of companies support the customer lifecycle with at least three distinct sales roles — SDRs, AEs, and CSMs (AMs, Renewal Reps, etc.). When we remove companies under $5M in revenues, that number rises to 67%. High-growth companies are slightly more likely to “triple specialize” than laggards.”
Tenure is only 2.2 years. So after the 5.3 months of ramp, you get 21.1 months of quality production out of good reps. “This is down from 26 months in 2020’s report. Considering lower experience requirements — which correlate with shorter tenure — and an overall fall in average tenure, this isn’t surprising.”
AEs average 18 dials and 25 emails per day.
Quota to earnings is 4.4x. “Median annual ACV quota is now $740K. Median on-target earnings are $167K with a 54:46 (base:variable) split. Continuing a decade+ trend, median OTE rose to record highs in 2022. While quotas have increased at roughly 2% annually, OTEs have risen at more than 5% CAGR over that same period. As ACVs rise, so do median on-target earning levels. At 100% of quota, the median commission rate is 10.3% of ACV.”
Customer Success reps have a base salary of $61k on average. That said, on target earnings are $100k for a CS rep. For an AE, the base is $62k on average with OTE of $126k. The higher the ACV, the higher the OTE. The average annual quota of such reps was $770k for a Bookings/Earnings ratio of 6.1x. As ACV rises, so does quota.
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