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Some Google Cloud sales reps have brought back over $ 1 million in salaries. It may come to an end.




Thomas Kurian, CEO of Google LLC’s cloud services, speaks during Google … [+] CloudNext ’19 event to be held in San Francisco, California, USA on Tuesday, April 9, 2019. The conference brings together industry experts to discuss the future of cloud computing.Photographer: Michael Short / Bloomberg

2019 Bloomberg Finance LP

One of Thomas Kurians was the first to move as Google Clouds CEO when he joined the company in 2019, raising the sales commission limit. He thought the move would lure elite sales reps to join the growing cloud computing sector, promising big payday.

Some have done just that, with a few talented salespeople earning more than $ 1 million in 2020. However, it may be nearing the end at that time.

According to a new report from The Information, Google Cloud is currently limiting sales team fees as Alphabet’s cloud computing unit is trying to achieve profitability.

Alphabet first announced operating revenue for Google Clouds in its Q4 2020 revenue report. Google Cloud generated $ 13 billion in revenue in fiscal year 2020, a 47% year-over-year growth, but the unit lost $ 5.61 billion annually.

Frankfurt Ammine, Germany-September 11: People pass the Google Cloud exhibit during the press … [+] Days at the 2019 IAA Frankfurt Motor Show on September 11, 2019 in Frankfurt Ammine, Germany. The IAA will be open to the public from September 12th to 22nd. (Photo courtesy of Sean Gallup / Getty Images)

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According to the information, Google Cloud will limit commissions at 500% of the salesperson’s annual quota. For example, if a salesperson’s quota is set to $ 1 million in sales throughout the year, the salesperson will only create commissions for sales of up to $ 5 million. Beyond that, there are no commissions for sales reps.

This move puts Google Cloud at risk of losing top talent to other organizations that need corporate sales reps. However, most large companies have a fee limit. It’s unclear what the Google Cloud salesperson’s compensation model is.

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