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What is a good % that Account Manager could have for his job?

I'm looking for a person to fill in a role of Account Manager in few regions, including USA. I'm going to offer some percent from each closed deal(instead of salary), but not sure what is the good % for this role. Please suggest


Re product: my business is aimed to help IT startups in building development teams. We offering our programmers, designers, and other specialists required for each specific project. We also providing project managers and testers for tracking progress and keeping good quality of product. I'm focused on software engineering for now, as I have experience in this, and providing most affordable yet good quality services.

13 Replies

Maxine Pierson
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Maxine Pierson Advisor
INTERIM CEO, EXECUTIVE DIRECTOR/ VP Investor
What is your product please - hard to get an acct manager to create a market with out a base -but you may be convincing
Christine Danning
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Christine Danning Entrepreneur • Advisor
Corporate Solution Specialist & Troubleshooter
With over 30 yrs in sales and business development, I would NEVER consider a position of commission only...to me, that's a slap in the face to think an employer won't pay me for my time to develop their market for them because they don't have the expertise to do so but they deserve a salary???? Sorry, bad business in my opinion.
Valerii Lider
0
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Valerii Lider Entrepreneur
CTO at Spire

Thanks for your feedback, Christine. The reason I'm thinking about giving % but no salary is because my business is on initial stage, means - I have no funds for paying salary, as I'm not having clients yet. I though that suggest to Account Manager some really good % will be a good tradeoff.

I understand your point, maybe you could suggest what I should offer to Account Manager, in my case?

Christine Danning
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Christine Danning Entrepreneur • Advisor
Corporate Solution Specialist & Troubleshooter
I'm stumped if you don't have the backing to pay to develop your market share...I see this so often and I'm always confused as to how a company expects to bring their product or service to market but doesn't have the funding/backing (even nominal) to at least start developing a specified territory to test market their product/service. Too often, I've seen companies bite off more than they can chew because they feel they need to jump into several market territories at once instead of starting out locally and moving out from that test market and accepted circle of clients/customers. Pro bono is always a good way to start with a few selected clients to start the word of mouth about your business. Maybe bring in a business development partner (not employee or 1099), but a business partner for stock/share of the company. There may be someone out there willing to do the sweat equity...maybe someone retired who had a great track record and wants to stay in it to some degree.
Peter Bazunov
2
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Peter Bazunov Entrepreneur
Deelor co. (managing director), business and technology expert at www.proexpert.info
I am afraid, Valerii, you are gonna start from the wrong end. Christine is right - you won't get the right person on just a commission basis. And you do not need a wrong person. So you will have to develope a good key account manager out of yourself.
Maxine Pierson
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Maxine Pierson Advisor
INTERIM CEO, EXECUTIVE DIRECTOR/ VP Investor
Peter- you are 100% right- I always use the old axiom you are your own best salesperson..
Michael Goldin
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Michael Goldin Entrepreneur
Director of Business Development at rented.
Valerii, it is possible for you to propose a commission only arrangement depending on your sales cycle. If you have a long sales cycle, most people will be turned off at the idea of not have an income for a period of time. In this case, you can offer a draw, where the employee can get prepaid commissions and pay them back as they begin to generate revenue. If you are going to be commission only, you likely need to be in the ~40-55% range of profit for the sales reps commission.
Maxine Pierson
1
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Maxine Pierson Advisor
INTERIM CEO, EXECUTIVE DIRECTOR/ VP Investor
If a company expects me to subsidize their money raising- get new customers for them and even reconfigure the manufacturing process - AND renegotiate suppliers FOR FREE -and under right my own expenses - the only person I have to condemn for idiocy in listening to this proposition is ME.Yes- Virginia- they did not even offer me stock...
Rob Gropper
2
0
Rob Gropper Entrepreneur
Director at PetHero, SPC - Member at Eastside Incubator - Principal at Tuxedo Technologies Group
Valerii, it is possible for you to find commission only sales people, but your offering has to be very, very compelling. By that I mean you must have a clear and well defined and realistic execution plan and a proven track record of success. You are asking for sales people to invest in you and your company - no different than asking investors for cash. In this case you are asking people to sell software engineering services of a Ukrainian company to US based startups - a risky proposition. Startups have a have a hard time paying their bills as it is, but you then add the risk to the salesperson of collecting payment from another startup based in Ukraine and you compound the risk to the sales person. I suggest you spend some time to do your homework and come up with a VERY compelling and detailed plan that addresses these issues first. You have 2 customers you need to sell to: the companies who will buy your services and the partners who will help you succeed (the sales people you intend to hire). any plan will need to include significant equity in addition to commission of you are going to have any chance at convincing a decent sales person to join you.
Christine Danning
0
0
Christine Danning Entrepreneur • Advisor
Corporate Solution Specialist & Troubleshooter
Valerii, What is your scope in your home town? Have you had successes locally? If so, who did those sales? Moving out of country without local successes will be a challenge for any organization. It also sounds like the start-ups you have chosen to focus on are start-ups just like your company, so without a proven track record, you may never move forward into being the successful company you are dreaming about.

One of the services I offer is part-time market development for new products and services but I never do that without a specified time contract... usually 6 months can help determine if the need is there and the market will accept it at a rate for profitable scale out.

Having said that... there is also that first 4-6 months of preparation that needs to be done before you even think about moving a sales person out into the world! That is hours of research to target your potential customers, calling both in person and by phone on a sampling of those clients to get a feel for their requirements and if you can meet those requirements.

I've learned in my 30+ years that many companies overlook some steps and that's why they aren't successful or as successful as they could be. Sales, good sales people are platinum for a company...not the necessary evil that many see us as. If we don't do our job well, there probably won't be other jobs in the company!
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