Hiring

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

Valerii Lider CTO at Spire

May 22nd, 2016

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.

Peter Bazunov Deelor co. (managing director), business and technology expert at www.proexpert.info

May 23rd, 2016

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.

Rob G

May 23rd, 2016

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. 

Maxine Pierson INTERIM CEO, EXECUTIVE DIRECTOR/ VP Investor

May 22nd, 2016

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

May 22nd, 2016

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.

Maxine Pierson INTERIM CEO, EXECUTIVE DIRECTOR/ VP Investor

May 23rd, 2016

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... 

Siarhei Harbachou Specialty Market Researching

June 9th, 2016

Valerii,
Everybody is right here.
You provide nothing new by your service.

When I posted post on this forum, I got tens of responses of the outsourcing firms providing cheap and experienced staff.

You need to find local partner in US who will provide you work for commission.

I suggest you to speak to Zhenia Rozinsky, here is presented on this site.
I had chance to speak to him on Conference in Belarus, and can certainly recoomend him.

One of his main interests is to help ukrainian startups (outsourcing too) to grow in US.

Valerii Lider CTO at Spire

May 22nd, 2016

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

May 22nd, 2016

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.  

Maxine Pierson INTERIM CEO, EXECUTIVE DIRECTOR/ VP Investor

May 23rd, 2016

Peter- you are 100%  right- I always use the old axiom you  are your own best salesperson..

Michael Goldin Director of Business Development at rented.

May 23rd, 2016

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.