1099 based AE

My company is currently facing challenges overall, with none of the Account Executives meeting their goals. The average deal cycle takes around 9 months, often extending even longer. Over time, I've developed strong relationships within the company. If I were to leave, I'm uncertain whether they could successfully close deals I pass on due to the existing connections. Layoffs are also occurring within the organization.

I'm curious if you've come across situations where sales representatives offer to transition from a salaried position to a full 1099 arrangement, working solely on commission. Additionally, they would leverage their relationships to bring in new deals. Simultaneously, they might explore opportunities in a different industry. Is this approach common or feasible?

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Pachacuti

Politicker

They call me Daddy, Sales Daddy

@cashincheckssnappinnecks Im sure you feel indispensable in your position there, but rest assured that you are dispensable. And don't take that personally - we all are. Unless you hold some key relationship with your company's biggest client (like you're the nephew, etc.) you are completely replaceable.

And don't worry about the relationships. I know you feel some sense of loyalty to either the company or your customers - but they will all move on. Rather quickly too.

Again - don't take it personally. It is what it is.

Regarding moving to a contractor relationship.... if they are doing layoffs, that may make you an easy target to be laid off. Why would you go to a 100% commission position when you can just go somewhere else and conduct a paid job search until that day happens?

cashincheckssnappinnecks

Good Citizen

Enterprise Account Executive

Yes I hold a key relationships with the largest prospects

cashincheckssnappinnecks

Good Citizen

Enterprise Account Executive

And I’m already planning on leaving regardless I’m just offering this as an option

oldcloser

Arsonist

💀

I’m currently in that spot. I preemptively volunteered to flip to loosely engaged 1099 so I could protect commissions on pending deals and took another gig. They thought it was noble of me and offered straight 25% commission. Deals pending. Relationships saved. All ok. Easy.

cashincheckssnappinnecks

Good Citizen

Enterprise Account Executive

How did this go down. Can you share more. What’re the deal sizes?

oldcloser

Arsonist

💀

Sure- Little company with the CEO making weekly trips to NYC to see the board on Saturdays. Each week the pipeline scrutiny got more intense. Boss man was not really equipped to shoulder it. I was 90 days in with a highly technical solution and a long cycle. The boot was coming. They just couldn’t pay someone to nurse deals along for a year.

So I made the concession. They actually appreciated it. I still have the email address, the platform access and their attention any time I need it. I’m not actively pursuing new deals, but they’ll likely offer the salary money up again when one I’ve been pushing closes.

oldcloser

Arsonist

💀

Sorry- missed that: $120k-$2M

CuriousFox

WR Officer

🦊

@oldcloser out here schoolin our asses

oldcloser

Arsonist

💀

I be like

GDO

Politicker

BDM

Wouldn’t they be scared of you not being focussed or losing you?

FinanceEngineer

Politicker

Sr Director, sales and partnerships

If it is 1099, you have a higher tax basis, but more write offs. You can also grab additional roles if you want. I have a couple of commission only ones that came to my inbox that I can share (would probably not take it, but worth it if you can close one or 2). You should see if you can write off your entire life into the role and end up saving more in taxes.

ThatNewAE

Big Shot

Account Executive - Mid enterprise

While it's easy to get attached to your deals, the prospects and whatever you have worked on so far - there's nothing you should do about them, once you have made your mind up to leave for good.
Moving from a full-time employee to a contractor would only make you an easy target to get laid off, without any perks to begin with. You wouldn't want that. It also is a tough battle to go through and convince your management to open this role for you to close those deals - i don't think it works like that.
Your relations that you have built with folks, will stay. Leave them a note when you are leaving that hey, I am leaving and I will stay in touch. A bit touchy of course. That way, your relations won't blame you for leaving without a word and having to deal with a new AE.