Tech Sales Roles: A Guide for Hiring Managers

August 21, 2024
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In the dynamic world of tech startups, understanding the various sales roles and their career paths is crucial for effective recruitment. This guide aims to provide sales hiring managers with insights into key tech sales roles, their responsibilities, and typical compensation ranges to aid in building a successful sales team.

Entry-Level Roles: Sales Development Representative (SDR)

  • Sales Development Representative (SDR)
  • Business Development Representative (BDR)
  • Account Development Representative (ADR)

These entry-level roles are ideal for recent graduates looking to break into the tech sales industry. They work top of the funnel 

Targets:

  • Generate new leads and opportunities (top of the funnel)
  • Book meetings for Account Executives (AEs)

Responsibilities:

  • Outbound prospecting
  • High-volume cold outreach (calls, emails, LinkedIn)
  • Qualifying inbound leads

Compensation:

  • Typically between $45,000 and $70,000 annually, including bonuses and commissions.

Promotions:

  • SDR Manager
  • Enterprise BDR
  • SMB Account Executive

Enterprise BDR

This role involves handling larger accounts with more employees and higher revenue potential. Companies typically entrust these accounts to more experienced sales reps.

Targets:

  • Similar to BDR, but focused on larger, more complex deals

Responsibilities:

  • Handling larger accounts with more employees and higher revenue potential
  • Focusing on larger, more complex deals

Compensation:

  • Typically between $60,000 to $90,000 annually, including bonuses and commissions.

SDR Manager

Responsible for coaching new SDRs to achieve success.

Responsibilities:

  • Lead and mentor a team of SDRs
  • Develop strategies to optimize lead generation and conversion

Compensation:

  • Typically between $80,000 and $120,000 annually, including performance bonuses.

Full sales cycle roles

  • Inside Sales Representative (ISR)
  • Account Executive (AE)
  • SMB Account Executive (SMB AE)

After 1-2 years, SDR may be promoted to an AE, where they'll manage the full sales cycle, usually starting with SMB accounts.

Targets: 

  • Revenue 

Responsibilitites: 

  • Full sales cycle (from prospecting to closing)
  • Demos, handle objections
  • Follow up, get contracts signed, collect payment

Compensation:

  • Typically between $70,000 to $350,000 annually, depending on experience and sales performance.

Promotion:

  • Mid-Market AE
  • Enterprise AE
  • Strategic, Global, Large, Key Accounts AE
  • Sales Manager

Account Segmentation in Tech Sales

Understanding the segmentation is essential for tailoring your sales strategies:

  • SMB (Small and Medium-sized Businesses): typically have fewer than 200 employees. Sales processes are agile, with shorter cycles and smaller deal sizes.
  • Mid-Market: typically range from 500 to 2000 employees. The sales process is more sophisticated, involving multiple stakeholders and a balance between personalization and scalability. 
  • Enterprise: Large corporations with thousands of employees. Sales cycles are longer and more complex, requiring strategic partnerships and comprehensive solutions that align with corporate strategies.

Sales Manager

Managers oversee AEs and ensure team targets are met.

Targets:

  • Revenue and sales growth

Responsibilities:

  • Overseeing AEs and ensuring team targets are met
  • Providing coaching and support to AEs

Compensation:

  • Typically between $100,000 and $160,000 annually, including bonuses.

Promotion: Sales Director

Senior-Level Management 

  • Sales Director
  • Head of Sales
  • VP of Sales
  • CRO (Chief Revenue Officer)

Career Path:

  • Sales Managers manage AEs
  • Sales Directors manage Sales Managers
  • Heads of Sales manage Sales Directors
  • VPs of Sales manage Heads of Sales
  • CROs manage all revenue-related functions

In smaller organizations, roles may be combined, such as having a VP of Sales instead of multiple layers of management.

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