Account executive
uh-KOWNT ek-ZEK-yoo-tiv
The salesperson who owns the deal from qualified opportunity to signed contract. Carries a quota and earns commission on closed revenue.
An account executive is the closer. The BDR qualifies the lead. The AE takes it from there: runs discovery, manages the demo, navigates the buying committee, handles objections, negotiates terms, and closes the deal.
AEs are measured on one thing: closed revenue against quota. Everything else (calls, meetings, proposals sent) is a means to that end. A great AE who misses quota is a good storyteller. A mediocre AE who hits quota is a professional.
The AE role varies dramatically by market segment. SMB AEs handle high volumes of small deals (10-20 per month) with short cycles. Enterprise AEs manage a handful of large deals ($500k+) with 6-12 month cycles. The skills are different. Volume selling requires efficiency and pattern recognition. Enterprise selling requires relationship building and political navigation.
Examples
A mid-market AE manages their pipeline.
The AE has 30 active opportunities totaling $2.1M in pipeline. Quota: $600k this quarter. Pipeline coverage: 3.5x. They prioritize the 8 deals most likely to close, schedule demos for 5 new opportunities, and set traps (follow-up triggers) on the rest.
An enterprise AE closes a large deal.
After nine months of relationship building, technical evaluation, security review, procurement negotiation, and executive alignment, the AE closes a $1.2M three-year deal. The commission check is $120k. The SE who supported the deal gets a $10k bonus.
An AE transitions from mid-market to enterprise.
The AE was a top performer in mid-market, closing 15 deals per quarter at $30k ASP. She moves to enterprise and closes zero deals in her first quarter. The cycle time is too long. By Q3, she adapts to the slower pace and closes her first $400k deal.
In practice
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Frequently asked questions
What is the difference between an AE and a BDR?
BDRs prospect and qualify leads. AEs close deals. The BDR hands off a qualified opportunity. The AE runs the full sales process from discovery to contract. BDRs are typically junior and paid on meetings booked. AEs are more senior and paid on closed revenue.
How many deals should an AE manage at once?
It depends on segment. SMB AEs manage 30-50 deals. Mid-market AEs manage 15-25. Enterprise AEs manage 5-10 active deals at a time. Too few deals means thin pipeline. Too many means each deal gets insufficient attention.
Related terms
Business development rep / Sales development rep. The people who prospect, qualify leads, and book meetings for account executives.
The revenue target assigned to a salesperson for a specific period. The number they must hit to earn full commission.
The total compensation a salesperson earns if they hit 100% of quota. Base salary plus full variable commission.
The percentage of revenue a salesperson earns for closing a deal. The variable component of their compensation.
The average time from first contact with a prospect to closed-won deal. Longer for enterprise, shorter for self-serve.
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