People unfamiliar with the technology industry are often amazed to learn that successful high technology salespeople can earn hundreds of thousands a dollars a year in salary and commissions. In fact, it’s not uncommon for top reps to make 3, 4, $500,000 a year or more. Even relatively inexperienced reps at the best known technology companies routinely earn 6-figure incomes.
So why are high tech salespeople paid like doctors, lawyers and investment bankers without the necessity of spending years in school earning professional designations and degrees? The answer is simple - they’re worth it.
Senior management at technology companies knows that high quality reps are significantly more productive than less effective reps, and in the largest accounts like financial institutions, Telcos and government agencies, the difference in productivity is often measured in the millions or tens of millions of dollars in incremental annual sales revenue.
During my career in sales management I observed firsthand the effect of replacing a so-so rep on a big account with an “A” player and seeing the results from that account skyrocket. If the typically high margins of technology companies are taken into account when considering the value of the incremental revenue generated by top reps, you can begin to understand why they’re paid so handsomely. The simple truth is that effective selling and account management is one of the major differentiators companies can use to gain an advantage over their competition and they’re willing to pay to get it. The bigger the account, the more they’re typically prepared to pay. It’s often said that in high technology major account sales, “a great rep is almost never overpaid, and a poor rep is almost always overpaid”.
In an effort to help to explain how they deliver so much value, and what it takes to be a successful high technology sales person, I’m going to be posting a series of blogs under the title “the High Tech rep” that will look at the elements of success in effective tech selling and managing, and the keys that can turn salespeople and managers into winners.
Feedback in the form of comments, questions and criticism are welcome, and interesting input will be included in the content from time to time. I hope you find the series interesting and informative, and if you’re a salesperson or manager, or are considering becoming one, that you find some of the information in these articles helps you achieve better results.
Author:
Eric Shefler has over 20 years experience in Technology Sales and Senior Sales management, most recently with a global leader in information infrastructure, software and security technologies as Vice President of Enterprise and Global Accounts in Europe, the Middle East and Africa, based in London, UK. Prior to that, Eric was a Vice President of Sales for a Fortune 500 networking company based in New York, NY. Born and raised in Montreal, Canada, he currently resides in Toronto where he consults with emerging technology companies on their go-to-market strategies.