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Sales reps at $11 billion AI startup ElevenLabs have to bring in 20 times their base salary, or they're out — VP says
BusinessBusiness Insider2mo ago

Sales reps at $11 billion AI startup ElevenLabs have to bring in 20 times their base salary, or they're out — VP says

ElevenLabs is a $11 billion voice cloning AI startup. Smith Collection/Gado/Getty Images ElevenLabs set "ruthless" sales quotas for its representatives, one of its execs said. VP Carles Reina said sales reps are expected to meet quotas equivalent to 20 times their base salary. He said ElevenLabs adopts a small team model for higher sales success. At $11 billion AI startup ElevenLabs, the message to sales reps is simple: Hit 20x your base salary, or you're out. Speaking on the 20VC podcast on Friday, Carles Reina, VP of sales at the voice-cloning startup, talked through its "ruthless" quotas. "So if I pay you $100,000 a year, your quota is $2 million. That's it. If you don't achieve your quota, then you're going to be out, right?" Reina said. "And we're ruthless on that end." ElevenLabs — which was recently valued at $11 billion after closing a $500 million funding round — operates in micro-teams of five to ten people each, according to CEO and cofounder Mati Staniszewski, who spoke on a separate 20VC podcast episode in September. Reina said he prefers to operate in smaller teams that hit their quotas, and pay them more. Small teams have become a growing trend in tech, with AI startups touting their ability to scale with far fewer employees by working alongside AI agents. LinkedIn cofounder Reid Hoffman wrote in January that a team of 15 people using AI can rival a team of 150 who aren't. Meanwhile, Mark Zuckerberg said on a Meta earnings call in July that he has "gotten a little bit more convinced around the ability for small, talent-dense teams to be the optimal configuration for driving frontier research." Reina said the "ruthless" quota has been successful at ElevenLabs, saying on the 20VC podcast that more than 80% of reps hit their sales quota. ElevenLabs did not respond to a request for a comment. He added that the firm compensates both the account executive and customer success manager if they upsell a company within the first 12 months. "I'm paying double, but I don't care," Reina said. "It makes perfect sense because then I have these two people busting their ass to make sure that they actually can make more money, which is fantastic for me as a company." The push for higher performance isn't limited to AI startups. In April, Google said it was restructuring its compensation structure to increase rewards for top performers. "High performance is more important than ever," Google's head of compensation told staff at the time. Read the original article on Business Insider

AI Startups Reshape San Francisco's Economic Landscape
BusinessBusiness Insider4d ago

AI Startups Reshape San Francisco's Economic Landscape

AI startups are increasingly opting for office spaces in smaller, mixed-use neighborhoods, shifting the economic center of gravity within San Francisco. This trend indicates a change in real estate preferences for new tech companies.

China sounds alarm over US military use of AI
WorldDawn1mo ago

China sounds alarm over US military use of AI

BEIJING: China warned the United States on Wednesday that the excessive use of artificial intelligence in its military could plunge the world into a “Terminator-like” dystopian future. US President Donald Trump’s administration has sought the unconditional use of AI startups in the military. The Pentagon has confirmed Elon Musk’s Grok system is cleared for use in a classified setting, and blacklisted Anthropic after it refused to allow its Claude AI model to be used for mass surveillance and ...

AI Startups Aim to Automate Tax Consulting
Businessfaz1mo ago

AI Startups Aim to Automate Tax Consulting

Fifteen AI startups are looking to automate tax consulting, with international platforms and founders disrupting the multi-billion dollar market for tax and auditing services in Germany.

AI Industry's Demanding Work Culture Raises Concerns
TechnologyThe Guardian2mo ago

AI Industry's Demanding Work Culture Raises Concerns

San Francisco's AI startups are reportedly pushing employees to work excessively long hours, including 12-hour days and no weekends, raising concerns about the brutal work culture in the AI sector and its potential implications for other industries.