An account manager acts as a middleman between the company and its customers. He or she oversees the relationship between the company and the customer. The account manager determines the needs or requirements of the customer – i.e. what they are looking to achieve on both a short and long-term basis. The manager ensures the company delivers to the clients according to their expectations.
When it comes to the roles and responsibilities of an account manager, it is to foster the customer relationships, interact with the marketing and sales team to prepare sales pitches, establish innovative marketing strategies as well as media proposals. The account manager also handles customer communications and write custom reports. He or she communicates customer plans to other members of the team.
Likewise, the account manager monitors budgets, costs, revenues, and profits – while explaining cost factors to customers. Some account managers have the duty of finding new customers and potential opportunities for the business. Some are even involved in upselling products and services. This was just to give you the basic idea of what an account manager is and what he or she does.
In today’s article, we will talk about account manager salary and how much does the account manager make. We are going to answer some of the most burning questions you have on salary for an account manager. Read on!
How much does the account manager make?
On average, the account manager makes around $60,000 per year in the U.S. Also, the account manager, in the U.S, also has a $12,000 cash bonus and $15,000 commission per year.
In the UK, the average salary is 32,500 pounds. Similarly, in Canada, the account manager’s salary is $47,000 per year. When it comes to hourly pay, it is $24.50 per hour.
The average salary for an entry-level account manager in Canada is $40,900 per year. Other the other hand, an account manager with 5-10 years of experience makes around $82,000 per year.
What are my salary expectations for the account manager job?
Suppose you went for an account manager interview in the SaaS Company and the interviewer asks you about your salary expectations. Well, this is a good opportunity to express yourself and be confident about your selling yourself. You must put pressure on the organization and doing so will allow you to make a fair offer. You can say something like:
“I am interested in the account manager position, which is a perfect fit for my interests, abilities, and skills. I believe you will offer me a competitive salary.” This way, you will let the interviewer know that you are a skillful individual and respect yourself.
Likewise, you must give them an opportunity by making a fair offer – and this might earn your respect. When you do this, you are letting the interviewer know tactfully that you are not a desperate person and want to be compensated adequately for your skills and time.
Don’t play hardball on the issue of salary. You must give them the right answer. Don’t make them think that you are a tough negotiator. Be flexible but don’t sell yourself cheap. This is a good incentive for a better salary offer.
Usually, some interviewers press further and talk about a specific number. If you face such a situation, you need to answer tactfully – for example, you should tell them that you have done your research and based on your experience, you understand that for an account manager salary, $60,000 to $70,000 per year is the appropriate figure when it comes to the role and requirements. Continue reading!
Do I need to know the company’s salary structure?
You must know whom you are negotiating with. You must also know their reputation and how are they acting as employers in the market. It is important to make some analysis on the company records and history to find whether or not they pay well.
You must collect the most important information before applying for a job or going for an interview. People, these days, collect all the information even before purchasing a product or subscribing for a service.
More importantly, you plan to sell your talent and skills. You will give them your time – so carefully think about it. Do your research and know the company’s salary structure, which might be available online. You can also talk to the existing company employees and discuss the salary thing. Make sure you approach the accounts department personnel.
Why should I accept an account manager’s job for a lower salary?
If you are wondering why you should accept an account manager’s job for lesser pay, then let us answer this question. You want to seek an account manager job but wherever you for an interview, they offer you a lower salary than your expectations.
Now, you need a job but you find yourself puzzled with the salary element. There are a few reasons to accept the job for a lower salary.
The first reason is that being an account manager is your dream job. If you imagined yourself in that role or have previously worked as an account manager, taking the job is worth even if they are offering you a lower salary than at your current position.
You need to know that many people take the pay cut because they are unable to find jobs that pay what they used to make. So, if you are facing a situation like your saving s are running out and you won’t survive without a job, you can work as an account manager for less salary. It has now become a necessity and you don’t have any other choice.
Being an account manager is your dream job – so, you can make it more fulfilling. This is why for a while, you should not be worried about the salary. For example, you are currently working as a junior account manager in a company with a good salary – but there are no opportunities for growth or when you come to know that the company won’t give you a promotion to become a senior account manager.
In such a situation, moving to another company where you know that they are offering you a lower salary but at the same time, there are promotion opportunities, it is a great idea to accept the job and start working as an account manager.
You must start working as an account manager with a positive mindset even if the salary is lower than your expectations. It is because the on-paper salary is lower – nonetheless, your company might increase it soon considering your talent and skills and how productive you prove yourself for the organization.
What is the most adequate Salary for an Account Manager in the SaaS sector?
Research shows that the tech sector offers profitable opportunities for an account manager. Most SaaS companies look to sell their SaaS product such as software, programs, and applications and they want their account managers to establish appropriate relationships with their customers to make the company more profitable.
Usually, this is done when there is more renewal of subscriptions. Although the customer success manager plays a key role in this – we won’t be wrong if we say the account manager is also a touchstone in this sector.
Recent research reports show that the average salary for a SaaS account manager in the U.S is $59,415. The earning potential significantly rises for organizations based in metro areas. Many companies allow their employees to work from remote locations.
Therefore, relocations may not be necessary for account managers who are interested in higher-paying positions with SaaS companies based in larger cities like New York, Chicago, and Montreal, Ottawa, etc.
For instance, in New York City, an account manager working for a SaaS company can even make over $100,000 with 10 years of experience. Also, the account manager must have 7-10 years of experience in the B2B SaaS enterprise. Some companies even pay over $150,000.
What is the account manager’s salary in the healthcare sector?
Research shows that the healthcare industry is one of the fastest-growing sectors in the U.S, Canada, and the UK. The population is expanding, people from (Generation X) are getting older, and medical technology is advancing. Also, it is true that people are getting sicker than ever in the fast-paced global world.
The average salary of an account manager in the healthcare sector is $59,416. Our research shows that the salary ranges for account managers in the healthcare industry increase quickly and there are additional responsibilities with the healthcare sector.
So much so, account managers, overall, in the healthcare sector can earn potentially somewhere in the range between $120,000 and $155,000 per year. When it comes to salary expectations, sub-sectors in this industry do matter. It varies greatly and depends on your skills and areas of expertise.
For example, in the healthcare information technology sector, you can even make more because it is more competitive than other sub-sectors of the health industry. So, in this sector, you will often see that it is crowded with account managers and they take the benefit of long-term experience.
Do account managers receive commissions?
The average salary for an account manager position in 2019 – according to PayScale – was $73,000 per year. This salary does not represent the entry-point salary for an account manager – however, it provides a good indication of what you can expect with your talent and experience. Again, the average salary varies by years of experience, the area of expertise and by the industry.
Account managers get benefit from their job position. For instance, typically, they get health insurance benefits, which include medical insurance benefits. Bonuses area is specific to individual organizations – it is common for an account manager to receive a bonus based on their annual bonuses or performance.
Moreover, in some companies, an account manager is incentivized by receiving commissions. These are primarily based on the revenue increments from the key account, which is under his or her leadership.
Likewise, commissions are added as a bonus for a lower to medium salary manager. They are not for higher-paid managers. This is also an area specific to each company. It depends on how the company arranges payments and benefits for the account manager position.
What skills are required for higher pay?
You need to know that both your skills can experience have a greater impact on you are paid. When it comes to experience, it is common for account managers to get a raise in a few years. However, the constraint is that the company monitors the performance and checks for how successful the manager was in the position.
An entry-level position has an average salary of around $63,000 per year – the same account manager can earn upwards of $110,000 to $120,000 after 10 years in the position. Time and experience in the role also have a positive impact on your salary and benefits. When you acquire and refine certain skills, it can help you to earn more in your job.
Moreover, to negotiate higher pay and earn more in the account manager position, you must focus on influential communication, strategic thinking, business development, and inspirational leadership.
You can show these skills through a positive track record and experience in areas where these skills are required. You can easily show the relevant skills through the previous job and a few years of experience in the current position.
Business development and strategic thinking are both important to how you, as an account manager, nurture the relationship between your company and the account’s business. You must think strategically about how to impact your customers positively and help them succeed in focusing on your goals of growth and expansion of the accounts. This, in particular, is useful in the subscription economy and for getting subscription renewals to retain customers.
At the same time, you must not focus entirely on your own goals but also focus on the customers who are willing to buy the product or subscribe to the service to make a long-term partnership.
Inspirational leadership and influential communication are necessary for keeping the key elements in human capital. This allows for the growth and development of partnerships. As an account manager, you must convince the company’s customers why they should buy the product and what benefits they can get from it.
Furthermore, strategic selling is the most important skill to understand. It is not the same as sales to new accounts – however, it focuses on how to customize the company’s product or services to meet or fulfill the expectations of the customers.
So, to sell strategically, you must sell the products seamlessly without pitching the idea. Also, strategic selling skills allow you to understand the business objectives as well as the needs of customers. This way, you can fit the product and service accurately to fill the gaps.
Therefore, you need to work on account manager skills in order to get a raise in your company. Our research shows that an account manager with key business skills – as mentioned above – can get 5-15% raise annually.
How often should I get a salary raise?
Some people say that account managers in the U.S and Canada are not legally entitled to a salary rise each year. Instead, it is up to the company to choose why and when to pay their account managers. However, to hold on to skillful account managers, most companies determine the need to give incremental rises each year.
Most companies follow a fully-planned formal process – for instance, more than 90% of companies in the U.S give raises to account managers once a year. Some companies increase pay in the first month of the year because their financial years is from December to January.
Some companies follow the tax year – starting from April. In small-medium enterprise SMEs, they do not decide to pay for all their account managers at the same time. However, they do review annually depending on when the account manager has joined the SME.
In addition, pay reviews for account managers in SMEs are more ad hoc. As an account manager working for a small business, you might not get a salary increase for 3-4 years. The reason is that your employer has not keenly thought about your pay. Therefore, if they haven’t given you rise for a while, you must ask for it.
In general, you can ask for or expect to get an incremental pay rise each year. If you are looking to get a rise sooner, you need to establish a compelling case – i.e. your roles and responsibilities have significantly changed – and in such an instance, you can argue for a promotion in a better way.
Wrapping up, an account manager plays a key role in the company and his primary responsibility is to manage relationships with customers and look after the sales. In today’s article, we have talked about account manager salary, which is something between $60,000 to $150,000 depending on skills, experience, and the type of industry you are working in. We have also answered some of the most important questions related to it.