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What is a House Account?
A house account refers to a customer account that is managed directly by a company’s senior management or central office, rather than being assigned to an individual sales representative. These accounts are typically strategic, high-value, or sensitive in nature.
Definition
A house account is a key customer account retained under direct company control instead of being handled by a specific salesperson.
Key Takeaways
- Managed by leadership or a central sales team.
- Often includes major or strategically important clients.
- Used to maintain consistency, confidentiality, or strategic oversight.
Understanding House Account
House accounts are commonly used when a customer relationship is too important, complex, or sensitive to be handled by a single salesperson. Senior management may oversee pricing, negotiations, and service delivery to ensure alignment with company strategy.
In some organizations, house accounts are also used temporarily—for example, when a sales territory is vacant or during account transitions. While this can ensure continuity, it may reduce commission opportunities for individual sales staff.
Clear policies around house accounts help prevent internal conflict and maintain transparency within sales teams.
Real-World Example
A multinational corporation may manage its largest enterprise client as a house account, with senior executives directly involved in negotiations and contract renewals.
Importance in Business or Economics
House accounts are important because they:
- Protect critical customer relationships
- Ensure consistent pricing and service standards
- Allow executive oversight of strategic clients
- Reduce dependency on individual salespeople
Types or Variations
- Permanent House Account — Always managed centrally
- Temporary House Account — Held centrally during transitions
- Strategic Account — High-value or high-impact clients
Related Terms
- Key Account Management
- Sales Territory
- Customer Relationship Management (CRM)
Sources and Further Reading
Quick Reference
- Centrally managed customer account
- Often high-value or sensitive
- Overseen by senior leadership
Frequently Asked Questions (FAQs)
Why do companies use house accounts?
To maintain control over important or sensitive client relationships.
Do house accounts earn sales commissions?
Typically no, though some firms offer shared or override commissions.
Can a house account be reassigned to a salesperson?
Yes, depending on company policy and strategic needs.
