At ElevenLabs, an $11 billion AI startup, the expectation for sales representatives is clear: achieve twenty times your base salary, or face dismissal.
In a recent episode of the 20VC podcast, Carles Reina, the VP of sales, elaborated on the company’s stringent targets.
“If your salary is $100,000 annually, then your target is $2 million. Fail to meet that, and there will be consequences,” Reina emphasized. “We maintain a strict policy regarding this.”
ElevenLabs, valued recently at $11 billion following a $500 million funding round, relies on micro-teams of five to ten individuals. CEO and cofounder Mati Staniszewski mentioned this during a separate episode of the 20VC podcast.
Reina prefers smaller teams that consistently meet their quotas and is open to offering higher pay.
The use of small teams is becoming increasingly common in tech, particularly in AI, where startups highlight their ability to scale operations with fewer employees by collaborating with AI tools.
Reid Hoffman, cofounder of LinkedIn, noted earlier this year that a 15-person team backed by AI can outperform a much larger team of 150 without AI support.
On a Meta earnings call in July, Mark Zuckerberg expressed his belief in the effectiveness of small, highly skilled teams for advancing groundbreaking research.
Reina shared that this strict quota has proven effective at ElevenLabs, stating that over 80% of their sales representatives meet their targets.
Requests for comments from ElevenLabs went unanswered.
In an interesting compensation approach, Reina noted that both the account executive and customer success manager receive bonuses if they upsell a client within the first year.
“I’m doubling the pay, but I believe it’s worth it,” Reina stated. “This strategy keeps both parties motivated to help us grow, which is beneficial for the company.”
The demand for superior output isn’t exclusive to the AI sector.
In April, Google announced changes to its compensation structure emphasizing rewards for top performers. “High performance is crucial now more than ever,” Google’s head of compensation informed employees during that announcement.
