The vocabulary, in plain English

A sales development representative is an entry-level salesperson whose job is to start conversations with potential customers and book qualified meetings for a closing rep, rather than to close deals themselves.

“We're hiring six SDRs this quarter.” This is the usual way in.

A business development representative does substantially the same job as a sales development representative, and the two titles are used interchangeably at most companies.

If a posting says BDR, read SDR. Where companies do distinguish, BDRs work colder lists and SDRs follow up on marketing leads.

An account executive is the salesperson who runs the full sales conversation and closes the deal, carrying a revenue quota rather than a meetings quota.

“I got promoted to AE.” This is the first closing role, and the first big pay step.

An enterprise account executive sells to the largest companies, handling a small number of high-value deals that take many months and involve committees of buyers.

The top of the individual-contributor ladder, and where compensation peaks.

An account manager looks after customers after they buy, handling renewals and expansion rather than new business.

A customer success manager is responsible for making sure existing customers get enough value from a product to renew it.

A common landing spot for people who like the relationship half of sales more than the closing half.

A sales engineer is the technical specialist who joins sales calls to answer product questions an account executive cannot, and who handles demonstrations and trials.

Sometimes called a solutions consultant or solutions engineer.

A sales manager leads a team of representatives, carrying the combined quota of that team and coaching each person against it.

The first management step, usually after two to four years as a strong closer.

Base salary is the fixed portion of sales pay, paid on a regular payroll schedule whether or not any deals close.

The number that arrives regardless. Ask for it separately from any other figure.

Commission is the variable portion of sales pay, calculated as a percentage of the revenue a salesperson brings in.

On-target earnings is the total a salesperson would earn in a year by hitting exactly 100% of quota, combining base salary and commission.

“The OTE is $110K.” Always ask how it splits. A $110,000 OTE at $70,000 base is a very different job from the same OTE at $40,000 base.

The split is the ratio between base salary and commission within on-target earnings, commonly expressed as a pair of numbers such as 50/50 or 60/40.

“It's a 60/40 split” means 60% of your on-target earnings is guaranteed base.

Quota is the sales target a representative is expected to reach in a given period, expressed in revenue for closing roles and in meetings or pipeline for entry-level roles.

The number your commission is measured against, usually reset each quarter.

Attainment is the percentage of quota a salesperson actually achieved, and it is the single number hiring managers ask about most in interviews.

“I finished at 112% attainment.” Learn to say yours as a percentage.

An accelerator is a higher commission rate that applies to revenue closed above quota, so that earnings rise faster once the target is passed.

This is how strong reps earn well beyond their on-target earnings.

A draw is a guaranteed minimum payment made against future commission, used to give a new representative predictable income before their pipeline produces.

Ask whether it is recoverable. A recoverable draw is an advance you pay back out of later commission; a non-recoverable draw is yours to keep.

Ramp is the initial period in a new sales role, typically three to six months, during which quota is reduced or waived while the representative learns the product and builds a pipeline.

“You're on a three-month ramp.” Being paid to be new is the point of it.

A clawback is a contract term allowing an employer to reclaim commission already paid if the customer cancels or fails to pay within a defined window.

Worth finding in the compensation plan before you sign it.

A SPIFF is a short-term cash bonus offered on top of normal commission to push a specific product or hit a specific target within a limited window.

Equity is an ownership stake in the employer, granted to employees as stock options or restricted stock units and typically earned over four years.

Common at technology companies and effectively absent from contract sales work.

Prospecting is the work of researching and identifying potential customers who fit the profile of a likely buyer, before any contact is made.

Outbound describes sales activity that begins with the seller contacting someone who has not expressed any interest, through calls, email or social messages.

The opposite of inbound, where the buyer contacts you first.

A sequence is a planned series of contact attempts across several channels and days, run against one prospect until they respond or the series ends.

Also called a cadence. Software runs the schedule; you write what it sends.

A discovery call is the first substantive conversation with a potential customer, spent understanding their situation and deciding whether there is a genuine fit.

“Disco call.” Mostly questions. Talking less is the skill being assessed.

A demo is a live walkthrough of a product, tailored to the problems a specific buyer described during discovery.

Pipeline is the combined value of all deals a salesperson currently has in progress, at every stage from first conversation to signature.

“Your pipeline is thin” means not enough deals in progress, and it is the warning that precedes a missed quarter.

An ideal customer profile is a written description of the type of company most likely to buy and stay, used to decide which accounts are worth a salesperson's time.

A territory is the defined set of accounts assigned to one salesperson, divided by geography, industry or company size so that representatives do not compete for the same buyers.

A customer relationship management system is the software where every account, contact, conversation and deal is recorded, and it is the system of record for a salesperson's results.

Salesforce and HubSpot are the common ones. Your track record lives here.

Enablement is the internal function responsible for training salespeople and supplying them with the materials and messaging they need to sell.

An objection is a reason a buyer gives for not moving forward, such as price, timing or an existing supplier, and handling objections is the central skill of closing.

Annual contract value is the revenue a single customer contract produces in one year, and it is the figure that determines which sales role a company is hiring for.

Low ACV means many small deals closed quickly. High ACV means few large deals over many months.

Annual recurring revenue is the total predictable subscription revenue a company earns in a year, and it is the headline measure of size for a software business.

“We just passed $50M ARR.” Useful for judging a company's stage before you join it.

A marketing qualified lead is a person whose behaviour suggests interest, and a sales qualified lead is one a salesperson has spoken to and confirmed is worth pursuing.

A conversion rate is the percentage of people who move from one stage of the sales process to the next, such as the share of first calls that become opportunities.

The sales cycle is the average time between a first conversation and a signed contract, ranging from days for small deals to more than a year for enterprise ones.

Ask this in an interview. It tells you how long you will wait to be paid commission.

Churn is the rate at which existing customers stop paying, and high churn is worth knowing about because it makes every sales target harder to reach.