BigMoney

Account Executive

Stick to management or go back to being an AE?

I've been working as a sales manager with five AEs on my team for the last 9 months after working as a successful AE at my company.

The first quarter went well and I hit just over 100% of my team target as well as ~125% of my own target (was a player/manager for the first three months). Things haven't been going as well over the past six months and one of my big concerns is money.

I know that I can consistently earn $20K in commission each quarter (on top of an $85K base salary) and there is minimal risk as there is no cliff so if I had a bad quarter and I'd still get some commission at least.

In comparison the management role requires me to hit 70% of my target to get 70% of my bonus and considering that 80% is seen as success in our company (100% is a stretch target) it is incredibly hard to get to that target.

I've not gotten my bonus last quarter and it's doubtful that we'll make it this quarter so it feels like I've taken a 50% pay cut for more responsibility which keeps increasing (targets have gone up from $420K a quarter to $750K with no additional headcount).

Therefore I'm thinking of going back to being an AE, not having to deal with any of the added pressure and earn more money. The concern here though is that this is my shot at management at an org that I've been at for almost four years and if I call it quits now I've blown my shot and wouldn't be considered for roles like this again unless I jumped ship.

Would be interested to get some thoughts from fellow salespeople as to what they would do in my situation.

💰 Compensation

🧢 Sales Management

21

21 comment

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TennisandSales

Politicker

15

Head Of Sales

Sooo i typically have the thought that if you want to be in a role where you make the MOST money, DONT choose management.

I think people should be choosing management because they want to have a different challenge, in managing ppl and not deals.

Or if they would like to be a VP in the future and need to flex different muscles. if you want to make the most money, stay as an individual contributor. or go back to being one in this case.

antiASKHOLE

Tycoon

0

Bravado's Resident Asshole

exactly!

Sunbunny31

Politicker

0

Sr Sales Executive 🐰

Absolutely true.

activity

Politicker

0

VP, Business Development

Great advice! Couldn't have said it better.

DPRM

Politicker

0

Ms Sales :)

100% agree

RelationshipMaker

Opinionated

4

Head of Sales

I feel your pain, been there.

I had a chat with my manager and let them know how I was feeling and the challenges that I was facing. I was careful to let them know that I was still 100% committed but the loss in pay was making life hard. They weren't aware of the unbalanced commission issue and took steps to fix it.

The outcome wasn't 100% better but it made life more bearable. Would your manager appreciate this kind of approach?

BTW, I reckon that 3 years as an AE and almost a year as SM looks great on the CV. Is it time to see what you're worth on the market?

In any case, make sure you fully understand what the total pay structure is and how it's calculated before you take the next step. Good luck.

coletrain

Politicker

3

Account Executive

My thought coming from someone who has not been in management is that you have to have a true passion for helping others within the org since there are vastly different pressures being put on you instead of those of an IC.

It is absolutely a decision that should not be taken lightly and commonly is. I can't say what is best for you, but I can say that the pressures from above seem to be mounting based on what you mention here.

Pachacuti

Politicker

3

They call me Daddy, Sales Daddy

I get satisfaction from both selling and helping others sell. That said, I follow the money. Many people think Management makes more $$, but as you're realizing, that is not always the case.

The difficulty is the optics of moving back to being an IC after being in mngt. You'll probably have to be more transparent than you want to be.

And of course, who'll step in and manage the AE team? You may not like not being "in the know" anymore and if they hire a jerk for a manager, you may find yourself looking for a new job instead.

CuriousFox

WR Officer

3

🦊

Well, what do YOU want to do? Deep down you know. Personally I like being responsible for myself only, so I can't technically tell you what to do.

GOLFaaS

Politicker

2

Sales Leader

9 months into a sales leader gig I felt the same way. However I decided to stick in out and get the experience then figured I would take it somewhere else or prove it year on year and ask for more pay to keep doing it.

BlueJays2591

Politicker

1

Federal Business Dev Director

It really depends on your career goals. I want to climb the management ladder so that's why I chose management. Seems like you are targeting more money, so IC is probably your best bet. Money comes heavily later on for management, but it takes time.

Sunbunny31

Politicker

1

Sr Sales Executive 🐰

So the past 6 mos have sucked for a lot of usually reliable reps as well. Many people I know did not make their number.

That said, it’s your decision, and if you really prefer the $ over the position, then you might want to return to being an IC.

Diablo

Politicker

0

Sr. AE

The answer is no different from what other said. You know you want to earn more but you have to decide how - by managing team ? Or being an IC?

hh456

Celebrated Contributor

0

sales

im in management. i miss the days of crying from laughter (and sadness) as an IC. had some great times in that role, had plenty of money and more free time than I do now.

theres a need to go vertical, you get older, you need to get behind a desk for job security. but i have some buds still slanging phones in their late 40's and loving life.

Lambda

Tycoon

0

Sales Consultant

Are you a better manager or a better salesman?
The choice is yours honestly is what it sounds like

BlackVNeck

Good Citizen

0

Mid Market Account Executive

Hi BigMoney I actually was in the same situation as you a year ago!

I personally decided to jump ship and go back to being an AE. The first few months were tough and filled with me doubting myself, dwelling on whether it was the right decision, but once I ramped up as an AE again, I was really glad I did it.

Salespeople are used to adversity but when you feel like the cards are stacked against you, it can be de-motivating and frustrating. I am much happier hitting my numbers as an AE than I was consistently missing targets as a manager. I am confident I will get another shot at management later in my career and next time I will make sure that the team targets are actually attainable before accepting!

heatmiser

Good Citizen

0

Key Account Manager

If your desire is to work up a totem pole in your career then sacrifice some of the money for those opportunities now and on there future.

if not make the money while you can and eventually realize as you get older if you want to extend your career in sales you will have to move back to the management role with the experiences you are dealing with today.

Best of luck to you as there are great times ahead in your life no matter which way you choose.

Rushjustin

0

President

Usually when sales drop it’s workethic/motivation, or skill level. I try to identify the issue and address! Talk to the team and get those bonuses rolling back in!

GoBlue

Old School Bravo

0

National Account manager

I would definitely be an AE if money is the driver.

Armageddon

Opinionated

0

Enterprise Account Executive

I've never been a manager, but in my experience a top IC can make more then a manager with 1/10th the stress. If thats my role i'll take it!

Salesgametowin

-1

Regional Sales Manager(rep)

Id suggest ret to AE role. Ive been in both roles managing a 9 rep team etc. I was #1 sales rep in my co last year w/o all the stress and responsibilities of management. I like to be in control of my income(all good salespeople do) and not depend on others to earn the money I want. If you want to manage(coach) then volunteer your time as a youth sports coach and go back to what you do best, SELLING!
I just closed a mega deal this week worth 25-30K in commish. Loving the sales game!

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