Should IT Companies Hire Account Managers and Salespeople? 

Content by: David Miller from MTS

If you are a Managed Service Provider (MSP) attending trade shows, conferences, and staying updated with the Channel, you might think this question is a no-brainer. Most thought leaders in the tech field seem to agree on this issue. However, when there is no debate on such a critical topic, it raises questions. What factors influence this decision, and does it apply to every MSP? 

The Role of Salespeople and Account Managers 

One of the first questions that comes to mind is why a salesperson, after building rapport and closing a sale, should hand over the account to an account manager. Alex Rogers from Chartec explains that salespeople prefer closing deals, and the tedious work of account management would slow them down from making more sales. This assessment leads to a deeper question: Are these salespeople being paid residual commissions or just one-time commissions? 

Commission Structures and Their Impact 

In an ideal scenario, where the IT provider has enough resources, having both account managers and salespeople who earn one-time commissions would be perfect. However, if a salesperson is paid residual commissions that recur monthly, this changes the equation. These salespeople would have an incentive to manage the account themselves to protect their commissions, saving the IT business from paying two salaries. This raises another question: Why is the idea of paying residual commissions to technology salespeople declining? Often, the excuse is that they won’t be able to handle account manager duties, which seems like a circular argument and deserves its own discussion. 

Territory Size and Specialization 

Another factor to consider is the size of the salesperson’s territory. If a salesperson covers a large multi-state area, having a separate account manager makes sense. For instance, if a sale is made in Houston and the rep needs to travel to Dallas, Austin, and beyond, they might not be available for the typical quarterly account management meetings with clients. 

Specialization and Client Experience 

The idea of specialization supports having a separate account manager. The skills of an account manager can be developed and honed over time, improving the client experience. Customer satisfaction can protect your account revenue and is a powerful motivator. 

Resource Constraints 

For some computer consultants, hiring an account manager might not be feasible due to resource constraints. They may not have the budget to support both roles on the payroll. 

Balancing Costs and Benefits 

Ultimately, the decision to hire account managers and salespeople hinges on balancing costs and benefits. While having dedicated account managers can enhance client relationships and satisfaction, it also means additional payroll expenses. On the other hand, having salespeople manage accounts can save costs but might impact their ability to focus on new sales. 

Strategic Considerations 

Each MSP must strategically evaluate its unique circumstances. This includes considering the size of their client base, the complexity of their services, and their long-term growth goals. A tailored approach, possibly combining both roles in different capacities, might be the most effective solution. 

Conclusion 

In conclusion, the decision to hire account managers and salespeople depends on various factors, including commission structures, territory size, specialization, and available resources. Each MSP must evaluate these factors to determine the best approach for their business. By carefully weighing the pros and cons, MSPs can make informed decisions that align with their operational capabilities and strategic objectives.