What Is an Account Executive and How Much Do They Make?

TL;DR

An account executive (AE) is a company's direct representative to prospects and clients whose main job is closing deals and bringing in revenue. AEs take inbound leads from marketing, run sales calls and demos, negotiate price, and follow up. They earn a base salary plus commission, with starting pay of 45K to 70K and top performers making over 200K.

Transcript

• If you're looking to learn exactly what an account executive is, how it works, and whether or not it's something you should be interested in, stick around 'cause we're gonna get all your questions answered in this video. Hey, what's up? It's Patrick Dang here. Before we go ahead and get started, make sure to give this video a like, subscribe and ... Read More

Key Insights

• An account executive is a direct representative between a company and its prospects and clients, whose main role is to close deals, handle the customer relationship, build rapport, and bring revenue into the business.
• AEs mostly work inbound leads, meaning marketing generates prospects who book meetings, and the AE gets on the phone to determine whether the customer is a fit to move forward with a purchase.
• The day-to-day of an AE involves taking many sales calls, doing presentations and demos, negotiating price, and following up with prospects who may not buy right away but could buy later.
• AEs can also handle cross-selling (selling different products after the first deal) and upselling (getting a customer to buy more), though whether that is their responsibility depends on the company.
• Account executives are paid a base salary plus a commission that depends on how much revenue they bring into the company, so pay scales with sales performance.
• Enterprise deals are why AEs exist: a company buying Notion for 500 employees at $7 a month on an annual plan spends $42,000 a year, a big decision that requires talking to a trusted human representative.
• An AE's core job is to demonstrate value, showing that saving employees time (Notion cites 98% time saved, 26% fewer emails, 32% faster project completion) makes the software pay for itself through greater profit.
• Per Betts Recruiting, starting AE salary is 45K to 70K; in San Francisco base is 60 to 85K, and hitting 100% of quota adds 122 to 170K in commission, with seasoned reps earning over 200K.

Questions & Answers

Q: What is an account executive?

An account executive is a direct representative between a company and its prospects and clients, and in many cases their main role is to close deals. They work at a company where their job is to handle the relationship with the customer, so if a customer has a problem or is interested in buying products and services, the account executive is the key contact person who talks to them, builds rapport and a relationship, and ultimately closes the deal to bring revenue into the business.

Q: What does an account executive do day to day?

The majority of the time an account executive takes inbound leads, meaning a company runs marketing and prospects book meetings, then the AE gets on the phone to see whether the customer is a fit to move forward with a purchase. They take a lot of sales calls, do presentations, negotiate price, and follow up with prospects who may not buy right away but could buy down the line. They can also be involved in cross-selling and upselling depending on the company.

Q: How does an account executive get paid?

An account executive, also called an AE, gets paid a base salary plus a commission that depends on how much revenue they bring into the company. The base salary is paid just for showing up to work, even if they sell nothing. On top of that, the commission scales with sales, so hitting or exceeding quota increases total earnings. This structure is often described as base plus OTE (on-target earnings) combining the guaranteed salary with performance-based pay.

Q: How much can you make as an account executive?

According to Betts Recruiting, the starting annual salary is 45K to 70K with performance bonuses. In San Francisco the base alone is 60 to 85K, and if you hit 100 percent of quota you can earn 122 to 170K in commission. New York pays about the same, while Austin and Chicago pay less because the cost of living is lower. Seasoned reps with a track record can make well over six figures, and top performers can exceed 200K a year.

Q: Why do companies need account executives for enterprise deals?

Enterprise purchases are large and complex, so buyers want a human they can trust before committing. For example, a company buying Notion for 500 employees at $7 a month on a 12-month annual plan spends $42,000 a year. Because that is a lot of money and a big decision, the buyer wants to talk to an account executive to confirm it is the right choice and a better fit than alternatives like Microsoft OneNote or Evernote before making the purchasing decision.

Q: How does an account executive justify the price of a product?

An account executive demonstrates value by showing the return on investment. Using Notion, they run a demo showing it is not just a note-taking app but also a project management tool. They point to results such as saving employees 98 percent of their time, 26 percent fewer emails, and 32 percent faster project completion. If a company gets projects done 32 percent faster while paying employees the same, it saves roughly 30 percent of its money, so a $42,000 annual cost pays for itself and becomes a revenue generator.

Q: What is the difference between cross-selling and upselling for an account executive?

In the context of an account executive's role, cross-selling means selling different types of products after they have closed the first deal, while upselling means getting a customer who already closed one deal to buy more. Both can be part of an AE's responsibilities, but whether they are depends on the company. A lot of the time account executives are focused primarily on closing net new business rather than expanding existing accounts.

Q: How do you get started as an account executive with no experience?

Some companies will hire account executives right off the bat even if you have no experience. These companies typically do not have a lot of talent applying for their jobs, which is why they are willing to give an account executive role to a beginner. The key requirement is that if you can close the deals, you are all good. Treating the role as a serious career rather than a side job matters, because you are responsible for bringing in revenue for the company.

Summary & Key Takeaways

• An account executive is a company's direct representative to prospects and clients whose primary job is closing deals. They own the customer relationship, build rapport, and bring revenue into the business, acting as the key contact when a customer has a problem or wants to buy products and services.

• AEs mostly handle inbound leads generated by marketing, taking sales calls, running presentations and demos, negotiating price, and following up with slower prospects. They may also cross-sell and upsell, though many focus on closing net new business. Pay combines a base salary with revenue-based commission.

• Using Notion as an example, a 500-employee enterprise deal costs $42,000 a year, so the AE justifies it by demonstrating value like time saved and faster project completion. Per Betts Recruiting, starting pay is 45K to 70K, with top San Francisco performers earning over 200K.