Verkada is constantly changing their compensation package. They don't cut your base, but year after year AE's lose earning (commission) potential through restructuring roles (explained below):
- Splitting Territories: Lose 1/2 of your accounts for a "new AE" to have a "new territory", or potentially 1/3 of your accounts where two established reps lose 1/3 of their account base, carving out a "new territory" for a new AE.
- Re-Tiering Account List: Mid Market Sales is a majority of Verkada's salesforce. They restructured Mid Market sales creating a "new role" for the established customer & prospect base in a given territory. Transitioning Tier 1 businesses, schools and municipalities to a MM Select role, and taking the bottom two thirds of that territory and assigning it MM Territory role. Same corporate trend of doubling the reps in an existing territory.
- Growth vs Strategic AE: A territory previously managed by one AE, is split with historical AE taking over current customers, and losing prospect accounts with $0 bookings to a "new" growth AE.
These changes have a compounding effect on the AE's in seat, and their ability to hit OTE and accelerators. The account base and roles constantly change, but quotas stay the same.
In a realistic (true) situation, an AE is given a patch of 500 accounts, down the line lose 150 accounts in a 1/3 split for a "new territory", shortly after lose their tier one accounts, going from 350 accounts to ~300. Shortly after that, the AE is no longer measured or compensated on existing customer renewals.
