What is an Account Executive (AE)?
An Account Executive (AE) is a sales role responsible for closing deals and managing customer relationships. AEs typically work with qualified leads passed from SDRs or BDRs, guiding prospects through the final stages of the sales process.
The AE role sits at the end of the sales funnel:
- SDRs/BDRs generate and qualify leads
- AEs close deals and manage relationships
- Customer Success manages post-sale retention and expansion
AE Responsibilities
1. Lead Qualification & Discovery
AEs verify that SDR/BDR-qualified leads genuinely fit the ideal customer profile.
Discovery Activities:
- Conduct discovery calls to understand prospect needs
- Validate BANT (Budget, Authority, Need, Timeline) criteria
- Identify decision makers and stakeholders
- Map competitive landscape
- Assess technical fit and integration requirements
2. Product Demonstrations
AEs showcase how the product solves prospect problems.
Demo Best Practices:
- Research prospect before demo
- Focus on relevant features only
- Map features to previously identified pain points
- Keep demos interactive (ask questions throughout)
- Show, don't just tell (live walkthrough > slides)
- Address the "why" before the "what"
3. Proposal & Negotiation
AEs create proposals and navigate negotiation.
Key Activities:
- Draft proposals reflecting discussed terms
- Present pricing and ROI justification
- Handle objections and concerns
- Navigate procurement and legal processes
- Negotiate terms while protecting margins
- Coordinate with internal teams (legal, product, CS)
4. Closing & Handoff
AEs bring deals across the finish line and transition to customer success.
Closing Activities:
- Secure final approvals and signatures
- Collect onboarding requirements
- Facilitate smooth handoff to Customer Success
- Ensure early customer success sets the stage for retention
5. Pipeline Management
AEs maintain accurate pipeline and forecast.
Management Tasks:
- Update CRM after every interaction
- Maintain accurate deal values and close dates
- Identify at-risk deals and develop recovery plans
- Provide accurate forecasts to leadership
- Track activities and outcomes for coaching
AE Compensation
Base Salary:
- Entry-level: $60K-$80K
- Mid-level: $80K-$120K
- Senior/Enterprise: $120K-$180K+
- Entry-level: $100K-$140K
- Mid-level: $150K-$250K
- Senior/Enterprise: $250K-$500K+
Typical split: 60/40 or 50/50 (base/commission)
Accelerators:
Many plans pay 1.5-2x commission above 100% quota attainment.
Example AE Comp:
- Base: $100K
- Commission: $100K at 100% quota
- Total OTE: $200K
- At 120% quota: $100K base + $140K commission = $240K total
AE Performance Benchmarks
Activity Metrics:
| Metric | Ramping | Fully Ramped | Top Performer |
|---|---|---|---|
| Demos/Week | 3-5 | 5-10 | 10-15 |
| Discovery Calls/Week | 5-8 | 8-15 | 15-20 |
| Proposals/Month | 2-4 | 4-8 | 8-15 |
Outcome Metrics:
| Metric | Good | Excellent |
|---|---|---|
| Win Rate | 20-30% | 35%+ |
| Pipeline Coverage | 3x | 4x+ |
| Forecast Accuracy | +/- 10% | +/- 5% |
| Quota Attainment | 100% | 120%+ |
AE vs. SDR vs. Customer Success
| Dimension | SDR/BDR | AE | Customer Success |
|---|---|---|---|
| Focus | Pipeline generation | Closing deals | Retention & expansion |
| KPI | Meetings booked | Deals closed | Retention & NRR |
| Typical Experience | 0-2 years | 2-5+ years | Varies |
| Compensation | $70K-$100K OTE | $150K-$300K OTE | $90K-$150K |
Career progression: SDR → AE → Senior AE → Sales Manager → VP Sales
Key AE Skills
Essential Skills:
- Discovery: Uncovering true needs through questioning
- Presentation: Clear, compelling product demonstrations
- Negotiation: Finding win-win solutions
- Time Management: Prioritizing high-impact activities
- CRM Hygiene: Accurate pipeline tracking
- Resilience: Handling rejection without losing momentum
- Business Acumen: Understanding prospect's business model
- CRM: Salesforce, HubSpot, Pipedrive
- Sales Engagement: Outreach, Salesloft
- Demo Platforms: Demostack, Navattic
- E-Signature: DocuSign, PandaDoc
- Analytics: Gong, Chorus (call intelligence)
Common AE Mistakes
Skipping Discovery:
Jumping straight to demo without understanding needs = poor conversion.
Demoing Everything:
Showing every feature rather than what matters to the prospect.
Premature Pricing:
Discussing price before establishing value = negotiation starting at discount.
Ignoring Stakeholders:
Focusing on one contact while missing other decision makers.
Optimistic Forecasting:
Keeping unrealistic deals in pipeline instead of disqualifying.
Poor Handoff:
Incomplete transition to Customer Success = churn risk.
Key Takeaways
- AEs close deals and manage customer relationships
- Base salary $60K-$180K+ with OTE reaching $500K for enterprise roles
- Key responsibilities: discovery, demos, proposals, negotiation, closing
- Win rates of 20-35% are typical
- Pipeline coverage of 3-4x quota is healthy
- Career path: AE → Senior AE → Manager → VP Sales
- Success requires discovery skills, presentation ability, and negotiation
- CRM hygiene and accurate forecasting are essential
Related Terms
A/B Testing
Testing two versions of an email, subject line, or landing page to see which performs better.
ABC (Always Be Closing)
Traditional sales mindset focused solely on closing deals. Modern approach: Always Be Connecting.
ABM (Account-Based Marketing)
Marketing strategy treating individual accounts as markets. Highly personalized campaigns for high-value targets.
ABS (Account-Based Selling)
Sales approach targeting specific high-value accounts with personalized outreach. Inverts traditional funnel.
