Glossary

Account executive

An account executive (AE) is the salesperson who owns a deal from the first qualified meeting to the signed contract. AEs run discovery, demos and negotiation, and are measured on closed revenue against a quota.

What Is Account Executive?

In short In a split sales team, SDRs or BDRs find and qualify prospects and hand booked meetings to the account executive.

The AE then runs discovery, builds the business case, brings in solution engineers or legal when needed, negotiates terms and closes. Salesforce describes AEs as the closers who own the middle and bottom of the funnel.

The role is usually split by segment. SMB AEs carry many short deals, mid-market AEs fewer and larger ones, and enterprise AEs may work a handful of multi-month deals with large buying committees. Pay is usually a base salary plus commission, quoted as on-target earnings (OTE). At smaller companies AEs often prospect for part of their own pipeline.

Account Executive Example

Example: a mid-market AE carries a $600,000 annual quota. With an average deal of $30,000 and a 25% win rate, the AE needs to close 20 deals a year, which takes about 80 qualified opportunities, or roughly 7 new ones a month from SDRs, marketing and the AE's own prospecting.

Account Executive in Practice

For outbound teams, the AE is where pipeline quality shows up. If AEs reject many of the meetings SDRs book, the ICP, the qualification bar (BANT or MEDDPICC) or the handoff notes need work. Teams track meeting-to-opportunity rate and win rate per AE to see where deals stall.

FAQ

What does an account executive do?

An AE manages deals from qualified meeting to close: discovery calls, demos, proposals, negotiation and contracts. Salesforce sums it up as presenting solutions, negotiating contracts and closing deals.

What is the difference between an account executive and an SDR?

The SDR works the top of the funnel: prospecting, first contact and qualification. The AE takes the qualified meeting and runs the sale through to signature. SDRs are measured on meetings and pipeline, AEs on closed revenue.

Do account executives cold call?

It depends on the company. In teams with SDRs, AEs mostly work meetings the SDRs book. In smaller teams, or in enterprise roles with named accounts, AEs often prospect for part of their own pipeline.

How is an account executive paid?

Usually a base salary plus commission on closed revenue, quoted as on-target earnings (OTE), the total at 100% of quota. Many plans pay accelerated commission above quota.

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Sources

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Salesforce: What It Takes to Become an Account Executive
Salesforce: 70 Key Sales Terms

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