Anyone made the transition from IB to Sales? What was it like?
I have been considering what to do after my second year of IB, and amongst the many discussions I've had sales has been on my mind.
Has anyone made a similar switch? If so, what was it like and do you wish you could come back?
Here are the pros and cons, in my very low informed opinion, please let me know if there is anything else I should consider:
Pros:
1) less hours, better work life balance. working 40 instead of 70-90.
2) potential for higher earnings. My thought process with this is that if I can spend 80hrs a week working for IB, I could spend 40 working and 40 or so training to develop better sales skills.
3) the more money you make, the more likely you are to be able to set your own schedule. (Seen this from my own experience working closely with sales reps in the past).
Cons:
1) you could always be really bad at sales and lose optionality to go back into high finance
2) might still be a grind for the first couple of years
If your going to do sales from what I have heard tech sales is the wave.
Based on the most helpful WSO content, transitioning from Investment Banking (IB) to Sales is not unheard of, but it comes with its own set of challenges and opportunities. Here's a breakdown of your considerations and additional insights:
Pros:
Better Work-Life Balance:
Sales roles, particularly in institutional sales (e.g., fixed income, equities), often have more predictable hours compared to IB. While you might still have to entertain clients or attend events, the grind of 80-100+ hour weeks in IB is generally not a factor.
Potential for Higher Earnings:
Sales roles can indeed be lucrative, especially if you're covering institutional clients or working in high-performing teams. However, earnings are often tied to performance, so excelling in sales requires strong client relationships and consistent results.
Flexibility with Success:
As you noted, top-performing sales professionals often have more control over their schedules. This is especially true in roles where you manage a book of business and have established trust with clients.
Cons:
Risk of Underperformance:
Sales is a results-driven field. If you struggle to build relationships or close deals, it could impact your earnings and career trajectory. Additionally, there is a bias in the industry that can pigeonhole you as a "sales guy," making it harder to pivot back into other high-finance roles.
Initial Grind:
While sales roles may offer better hours in the long run, the first few years can still be demanding. You'll need to hustle to build your client base, learn the products, and prove your value to the team.
Additional Considerations:
Skillset Alignment:
Sales requires excellent interpersonal skills, the ability to build and maintain relationships, and a knack for persuasion. If these align with your strengths, the transition could be smoother. However, if you lack these skills, it might take significant effort to develop them.
Optionality:
While transitioning to sales might limit your ability to return to IB, it doesn't necessarily close all doors. Success in sales, particularly in institutional roles, can open pathways to other areas like hedge funds or asset management, where client relationships are highly valued.
Sales vs. IB Dynamics:
Remember that IB at higher levels is also heavily sales-oriented, focusing on client relationships and deal origination. If you're considering sales because you dislike the technical or analytical aspects of IB, this could be a good move. However, if you're not comfortable with the "salesy" nature of IB at senior levels, transitioning to sales might not be the right fit.
Final Thoughts:
If you're seriously considering this switch, it might be worth exploring sales roles within finance that align with your IB experience, such as institutional fixed income or equities sales. These roles leverage your existing knowledge while allowing you to develop sales skills. Additionally, speaking with professionals who have made similar transitions could provide valuable insights into the realities of the role and whether it aligns with your long-term goals.
Sources: Transitioning from tech to a serious finance job (yes, you read that right), Best sales job in finance, https://www.wallstreetoasis.com/forum/investment-banking/pros-and-cons-ib-vs-pm?customgpt=1, Sales in S&T - What's the catch? (best job in banking)??
Do not do this. In all likelihood, this would be the worst career decision of your life. I do not mean to disparage folks in sales, as I do truly believe being a good salesman is one of the most important and difficult skills to develop.
However, you can always go into sales. You can get a tech sales job with a 2.5 GPA from any random college. The same cannot be said for IB and high finance. If you leave after 2 years, you will never come back. The earning potential might theoretically be higher in the short term (it probably still isn’t unless you’re a rockstar and land in a lucky seat), but much much lower long term.
The most likely outcome, which I have seen play out with almost everyone I know in sales, is that you bounce from company to company every 1-3 years for the rest of your career, earning $100-350k, depending on the year. If a company is failing, the first thing they restructure is sales. If a company is acquired, same. If a company goes public, same. There is zero loyalty and no job security, even as a top performer. Commission plans get cut and modified on a whim.
Conversely, you can stay in IB, or take one of the many finance routes and see where it takes you. If you still have the sales itch in 5-10 years, you will likely be a more competitive candidate for many sales job because you rose through the ranks of finance.
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