The function of Business Development Manager (BDM) is one of the most important factors as to the success of an organization. These are the key players in charge with new business development, partnership and revenue sources. Due to the importance of the role it is not surprising that a business development manager’s wage can be considerable. But how much does a BDM really make? What do they earn and conversely how can one make as much money as possible in this position?

Here in this tutorial, we will discuss every aspect of the business development manager salary such as how much it actually pays, what elements determine it, how the career path looks like, and how to get a raise. This article is going to be of significance whether you are contemplating for a business development career or are already in the business development job.

What is a Business Development Manager Salary?

Let us first know what a Business Development Manager is supposed to do before provoking the discussion of the salaries. Normally, BDMs are responsible for seeking new markets, selling service propositions to target clients or potential partners, and for increasing the revenue.

Key Responsibilities of a Business Development Manager:

• Identifying new business opportunities: The BDM conducts research to seek out prospective clients, partners, and market trends that will translate into growth.
• Building relationships: It entails interactive duties including contacting potential clients, and maintaining business connections.
• Creating business strategies: All BDMs ensure that they come up with long-term strategies and then work towards attaining the objectives of growing the sales and the market share.
• Negotiating deals: This entails undertaking activities such as contracts, terms, and partnerships with the company in mind.
• Collaborating with other departments: BD may be viewed in relation to sales, marketing and operation because the groups may synergize in achieving short and long term objectives.

Due to the fact that the functions of the business development manager are diversified, the salary standardized is commensurate to the demands of the position.

Factors Affecting Business Development Manager Salary

Hence, the nature of Business Development Manager remuneration can be tied to many factors depending on certain conditions explained below. These include experience, industry, location, size of the company and performance. By practicing with these variables, one is able to obtain a much clearer understanding of his/her earning ability, and thus, draw the right career choices.

1. Experience Level

The level of experience is one of the most important determinants of the a business development manager salary. One thing that applied to most positions is that those who have more experience receive more income. Here’s a breakdown of how experience impacts salary:

• Newcomers within the BDM employment hierarchy (0-2 years) are usually paid less in salaries since they are still gaining experience and knowledge in the market. The entry BDM’s starting pay can be anything between $50 000 and $70 000 per year.
• BDMs, who have between 3 to 5 years of experience, have more credentials and understand strategies concerning business development and have higher earnings ranging between 70000-100000$.
• The remunerations of the senior BDMs that have worked for 6 or more years range from $100,000 to $120,000 as they are expected to generate business for the organization.

2. Industry

The nature of the business that the BDM operates determines its salaries as well as attracts better paying jobs in some industries. Particular sectors pay better because of the nature of work or the size of the transaction that a worker takes.

• Technology: It should however be noted that BDMs operating in the tech industry tend to earn more due to the fast growing and evolving nature of the industry. Business houses in technology sector usually allocate bigger budgets than regular businesses and hence can afford to pay more in terms of revenue. The BDMs working in this sector can expect to earn between $90,000 and $150000 per annum.
• Finance and Consulting: The financial sector and consulting also often provide relatively high remuneration because the generation of business is the key for new clients acquisition and retaining competitive advantage. Wages in these fields differ from $85,000 up to $140,000.
• Manufacturing and Logistics: In these industries, though the BDMs may get relatively lower remunerations than their counterparts in the tech and finance industry, they earn a decent income that ranges between $70,000 to $100,000.
• Healthcare and Pharmaceuticals: Due to the numerous and increased regulatory aspects, combined with highly valuable deals, healthcare and pharmaceuticals BDMs will be paid within the range $80,000 – $130,000.

3. Location

Another key factor that has influence on a business development manager salary is location. They also noted that employment remunerations depend on the cost of living in the area or areas of demand for the BDM specialization.

• United States: In big cities such as New York, San Francisco, and Boston, it also possible that BDMs will earn relatively large number of money more than one hundred thousand because of technological, finance, and high growth industries.
• Europe: According to recent research, BDMs in London, Berlin, and Paris received €50,000 to €120,000 per year depending on the industry and size of company.
• Asia: Currently, the salaries for BDMs range from $80,000 to $150,000 best suited in the Singapore and Hong Kong market due to the growth in the markets and job availability in technology and finance industries.

4. Company Size

Another factor is the size of the company; human resource managers pay their employees based on their size of the company they work for. Some companies offer more attractive remuneration packages than others depending on their overall size and the overall market they need the BDM to operating in.

• Startups: New firms cannot always afford to compensate workers with substantial salaries, but they may offer everything in the company as stock or stocks that may yield handsome returns if the firm expands. BDM in startup companies may earn anything from $60,000 to $90,000.
• Mid-sized companies: In these companies, BDMs also expect to receive more competitive salaries of between $70,000 and $110,000 depending on the company growth plan and current financial ability.
• Large corporations: Big well grounded organizations which dominate their markets and generate high revenues tend to be the most generous when it comes to the payment of salaries. BDMs in such organizations are paid an average of over $120,000 when they are handling multi-million deals or partnerships.

5. Performance and Bonuses

Basing of employees’ remuneration on their performances is typical for the business development positions. In addition to, the base pay, BDMs are normally offered either bonuses or commissions based on the ability to attract new customers, make sales or hit set revenues.

• Commission structure: There are some firms that considered commission based remuneration system whereby part of the employees’ remunerations depends on the sales or deals brought in by the BDM. This can greatly enhance the entire ‘pay package.’
• Performance bonuses: Apart from commissions, almost every company offers optional annual or quarterly performance bonuses if the parameters are achieved, which can be from $10,000 to $50,000 or increased.

Average Business Development Manager Salary

There are so many factors which determine the business development manager salary and taking some general wages into consideration might help you to get a rough idea.

• United States: Using the different salary related sites the average remuneration of a BDM in the United States is estimated to be $85000 per annum. This may rise with experience, industry or region, although the highest paid SJs earn more than $150,000 per year.
• United Kingdom: The average employee wage income in the United Kingdom is around £45,000 per year, differentiated from £100,000 or more where highly demanded skills is required.
• Australia: The BDMs receive an average of AU$ 100,000 of au$ AU$ 70000 to AU$ 150000 depending on the industry and experience.

Career Growth and Increasing Your Salary as a Business Development Manager

The business development is the constantly growing field that offers great opportunities to advance in your career and negotiate the salary raise. Here are some strategies for maximizing your earnings potential as a BDM:

1. High-growth industries should form the focal area of your actions.

When it comes to improving your wage, one of the most effective methods is to get into the niches experiencing the greatest spurt. For example, technology, renewable energy, and fintech sectors are those that need BDP professionals and have better compensation.

2. : Custom Negation and Sales Skills

The higher the deal closing rate and the better the negotiation skills for cooperation with business partners, the more useful the specialist is to the employer. You might learn about sales courses that can help you develop more skills than you currently possess and, therefore, sell more for your company .

3. Build a Strong Network

The latter unveils the fact that business development is virtually a relational process. The more the individuals you are connected to and the more valuable they are, the more you are likely to increase your chances of getting through to high value contracts and business partnerships. Go to conventions and expos, network on the internet with workers in your sector, and get to know ‘big players.’

4. Aim for Leadership Roles

With time, one should advance to a higher rank that is, Director of business and development or vice presidency in sales. These positions are associated with higher productivity expectations, on the other hand, these positions are well paid, with some positions paying more than $200,000 per annum.

Conclusion

Specialist’s pay scale also depends on several elements such as the experience, industry, geographical location, and result performance of the business development manager. Nevertheless, qualified strategies can include competitive salary rates and massive opportunities for the BDMs. When you focus your efforts on industries with high growth potential, the right skills, and your network, then this exciting position holds the potential to reward you very well.