Commission Check
It closed. What do I actually take home?
Deal size, your rate, and how you're paid. A planning estimate of the check after withholding, not tax advice. These are example numbers; type yours over them.
Deal size, your rate, and how you're paid. A planning estimate of the check after withholding, not tax advice. These are example numbers; type yours over them.
Gross commission is the number in the plan. Take-home is the number in your account. They are further apart than most sellers expect the first time.
A standard W-2 payout typically has about 30% withheld between federal, state and payroll taxes; a high-bracket earner is closer to 40%; a 1099 contractor has nothing withheld and should set aside roughly 20% or more themselves. These are planning estimates. Your actual rate depends on your state, your filing status and what else you earned this year, and supplemental wages are often withheld at a flat rate that gets reconciled at tax time.
Use it to plan, not to argue with payroll. And once you know what a deal pays, the more useful question is whether the plan behind it is sane: Quota Check.
I've spent a lot of years helping customers buy complicated technology. For six of them I led partner sales teams at AWS. Before that F5, Red Hat, and a couple of storage companies you've probably forgotten. Before all of that, 20 years as a Marine.
Along the way I've been the seller defending the deal, the partner trying to help, the manager asking annoying questions, and the guy one level up explaining why the forecast moved again.
QuotaBird is where I put the things I've found useful. Most of the tools are free. Most take a few minutes. None of them require you to adopt a new sales religion. Use whatever helps.
Rarely just one of them. Usually a couple at the same time, quietly making each other worse.
The forecast call has become the job. Your manager wants a status on everything by noon, the CRM wants a next step on every line, and the customer is the last person you talk to each day.
The pipeline looks better than it really is. Plenty of opportunities in the CRM, but once you ask about budget, timing and who actually wants the thing, the number gets smaller fast.
The partner likes you, but nothing is happening. Plenty of meetings, maybe a joint deck. Nobody can point to the accounts where the two companies are actually trying to win something together.
The team is busy, but there isn't much rhythm. The forecast call happens. The one-on-ones happen. Nobody is sure what the team should do differently this week to make next quarter better.
The number from above doesn't match what you see below. Leadership has a growth number. Your team has a pipeline. You're the one who has to explain why they disagree without sounding like you've already given up.
A team can be behind plan for a lot of reasons. One seller needs help getting in front of customers. Another is doing fine and wants you to stay out of the way. Someone else thinks the year is already gone. Sometimes the rep is fine and the territory, the comp plan or the pipeline they inherited isn't. The useful part is figuring out which one you're dealing with before you fix the wrong one. That's what the tools here do, one deal, one rep, one territory at a time. It's also most of what I do.
Sometimes a calculator isn't enough. If you're stuck on a deal, an account, a partner, a territory, a QBR or a federal problem, I'm happy to look at it with you. Here's exactly how it works:
If I don't think I can help, I'll tell you.
If it's something that takes more than a conversation, we can figure that out too. I also build fedhoo, a federal market research tool.