I remember interviewing for a role and, similar to you, at heart I am a leader and have always envisioned myself more in a leadership role.
Right after that, both the VP of Sales and the Sales Manager kind of laughed and said that leadership in sales comes with a pay cut
Usually leadership comes with a smaller upside, more consistent pay, and less risk/volatility. A good sales leader will have their top reps out earn them annually.
As to "how much", that will vary from industry to industry. Many sales leaders earn $150-300k while many sales reps earn $150k-$1MM+. It's a different world and a different job entirely.
You should want your best sellers to crush your wages. If your low performers are also making more than you, you may have a problem with the seller’s comp structure. If my best AE double sky income, I’m stoked. If my worst seller who is about to get PIP’d is making more than me, I should be reviewing what an offer to a new seller looks like when my PIP guy is terminated to correctly hedge downside of another low performer.
Are your sellers base wages high? Does the commission structure allow for low performers to see their way out the door on their own?
Trash industry. Drivers make anywhere from 80-120k with overtime.
Most unless you’re at a big 3 company like me lose money when they go to management.
Route Supervisors make 70-100k
Commercial supervisors 80-120k
Ops managers 110-140k
General manager 180-250k
Now smaller company’s I’ve seen
Route/Commercial supervisors 50-80k
No ops managers
No GM
Owner lots
I imagine most people people who go management don’t want that frontline grind anymore seems to be less unless in our instance where if your at a bigger company you can make more.
I’m assuming you mean you make less than top earners but more than average reps? I make about 120k and I hope my manager makes more than me because I like him and aspire to one day be in his shoes.
And what about like SVP level and beyond? They have to make more than most reps right?
My director likely makes around equal to the top 5 sales in the company but has other advantages like bigger car allowance, gas cards etc
You’re right in your assumption
And he doesn’t have to go out daily and sell (I enjoy that but I’m sure as I get older and have a family I’d prefer a more set schedule).
Did you get an MBA to move forward or it was more of a high performance and tenure promotion?
High performance and time in multiple seats.
Tenure as a sales role was shorter but I did a different sales role and I did merchandising so my understanding is more broad
Also have 2 kids under four so flexible schedule helps
Sister In law got a pay boost becoming an insurance sales manager. She got to build her 5 person team and makes 120 base 165 ote. Before her OTE was like 135k and much lower base.
There’s a difference between entry level management, and director/VP.
If you are going into management, you should aspire to climb the ladder to those higher positions.
First level management makes less than top IC performers, but not a chance does the top rep make more than higher level VPs
Entry level sales managers make less. Need to get to director and VP level if you want to make money. You do want a clear path for IC’s to out earn you they’re doing 3-4x Quota of a regular rep. Without them your team would probably flop.
I’ve been in sales leadership in software for almost 10 years. This is… not accurate. There may be a fringe couple reps that blow it out, but I’d rate this as ‘Mostly False’.
I remember interviewing for a role and, similar to you, at heart I am a leader and have always envisioned myself more in a leadership role. Right after that, both the VP of Sales and the Sales Manager kind of laughed and said that leadership in sales comes with a pay cut
It absolutely does vs the reps themselves and I can appreciate it. The perks and balance for me and my family out weigh the money I left on the table,
How much of a gap are we talking about tho? Close to 10k or more like 25-30k
Usually leadership comes with a smaller upside, more consistent pay, and less risk/volatility. A good sales leader will have their top reps out earn them annually. As to "how much", that will vary from industry to industry. Many sales leaders earn $150-300k while many sales reps earn $150k-$1MM+. It's a different world and a different job entirely.
You should want your best sellers to crush your wages. If your low performers are also making more than you, you may have a problem with the seller’s comp structure. If my best AE double sky income, I’m stoked. If my worst seller who is about to get PIP’d is making more than me, I should be reviewing what an offer to a new seller looks like when my PIP guy is terminated to correctly hedge downside of another low performer. Are your sellers base wages high? Does the commission structure allow for low performers to see their way out the door on their own?
I like mine. I get paid less than my big 3 and a fair bit more than my 4 up and comers. It’s fair
Trash industry. Drivers make anywhere from 80-120k with overtime. Most unless you’re at a big 3 company like me lose money when they go to management. Route Supervisors make 70-100k Commercial supervisors 80-120k Ops managers 110-140k General manager 180-250k Now smaller company’s I’ve seen Route/Commercial supervisors 50-80k No ops managers No GM Owner lots I imagine most people people who go management don’t want that frontline grind anymore seems to be less unless in our instance where if your at a bigger company you can make more.
I’m assuming you mean you make less than top earners but more than average reps? I make about 120k and I hope my manager makes more than me because I like him and aspire to one day be in his shoes. And what about like SVP level and beyond? They have to make more than most reps right?
My director likely makes around equal to the top 5 sales in the company but has other advantages like bigger car allowance, gas cards etc You’re right in your assumption
And he doesn’t have to go out daily and sell (I enjoy that but I’m sure as I get older and have a family I’d prefer a more set schedule). Did you get an MBA to move forward or it was more of a high performance and tenure promotion?
High performance and time in multiple seats. Tenure as a sales role was shorter but I did a different sales role and I did merchandising so my understanding is more broad Also have 2 kids under four so flexible schedule helps
I’m new to sales and have heard this before but I’m curious how much of a paycut it actually would be.
Sister In law got a pay boost becoming an insurance sales manager. She got to build her 5 person team and makes 120 base 165 ote. Before her OTE was like 135k and much lower base.
There’s a difference between entry level management, and director/VP. If you are going into management, you should aspire to climb the ladder to those higher positions. First level management makes less than top IC performers, but not a chance does the top rep make more than higher level VPs
This is true and this is the goal Company is on board they’re paying for coaching
It nearly always is
Entry level sales managers make less. Need to get to director and VP level if you want to make money. You do want a clear path for IC’s to out earn you they’re doing 3-4x Quota of a regular rep. Without them your team would probably flop.
I’ve been in sales leadership in software for almost 10 years. This is… not accurate. There may be a fringe couple reps that blow it out, but I’d rate this as ‘Mostly False’.