Sales representatives often earn a commission on the products they sell. Other sales jobs include managing sales teams and providing customer service, related to the product or services offered by a company.
The sales representative will be responsible for selling a variety of products to customers. They may also be required to design and implement product promotions, or assist in developing and executing marketing campaigns to promote new products or services. This position does not require any specific education background aside from high school, but does often require experience in the industry you are applying for work in.
The average salary for a Sales Representative is $52,000.00 USD annually. This estimate is based upon 5,067 salaries submitted anonymously to Indeed by Sales Representative employees. The typical Sales Representative salary ranges from $34,000 -$72,000; the average salary is $51,133. About 1% of sales representatives are musicians and singers.
Salary For Sales Representative Overview
A sales representative is a person who works for a company and sells its products or services to customers. In order to become a sales representative, you need to complete a bachelor’s degree program in business administration, marketing or sales managem
A sales representative is someone who sells products or services on behalf of an organization. They go out into the world and make connections with potential clients, make deals with them, then bring those deals back to their employer so they can be fulfilled.ent. Once you have completed your education, you can begin looking for a job as a sales representative.
The average salary for a sales representative in Canada is $58,000 per year. The average starting salary for a sales representative in Canada is $42,000 per year. Sales representatives in Australia make an average of $72,000 per year and earn an average starting salary of $42,000 per year.
What Is a Field Sales Representative?
Field sales, or outside sales, is the process by which companies visit leads and sell to them in person. Field sales representatives typically work for B2B and wholesale organizations whose sales processes rely on relationship-building and long-term contracts.
Field sales reps are especially effective with these long-term accounts, since they can visit customers on a recurring basis to perform maintenance, place replenishment orders, or take any other initiative necessary to keep the client happy and maximize profitability.
Sales Representative Duties & Responsibilities
Responsibilities can depend on the employer and the field in which they work, but some common duties of sales representatives include:
- Sell to key retail accounts.
- Contact new and existing customers to meet and exceed sales objectives.
- Organize, rotate, and stock shelves during each store visit.
- Participate in sales meetings and on-site training.
- Negotiate and use persuasion skills to overcome objections.
- Deliver presentations and demonstrate products to customers.
- Provide daily recap of results and accomplishments to the management team.
An inside rep accomplishes this from an office, while an outside rep travels to clients.
Sales Representative Salary
Salespersons in the wholesale electronic market are the most highly paid. Overall, including all sales reps, salaries fall into the following ranges:
- Median Annual Salary: $79,680 ($38.31/hour)
- Top 10% Annual Salary: More than $156,630 ($75.30/hour)
- Bottom 10% Annual Salary: Less than $39,960 ($19.21/hour)
Responsibilities:
- Close new deals at a high rate
- Build relationships with existing customers
- Cultivate new leads within the sales territory
- Travel throughout the territory and visit customers on a recurring basis
- Manage multiple accounts simultaneously
- Maintain records of all sales leads and/or customer accounts
- Represent the brand during all customer and prospect interactions
- Educate customers on how products or services can benefit them financially and professionally
- Monitor the company’s industry competitors, new products, and market conditions.
Field Sales Representative Salary
The average salary for a field sales representative nationwide is $43,688, according to Glassdoor. However, pay varies widely depending on a rep’s location. For example, field sales representatives in Boston average $55,000 a year, while reps in Los Angenes make just under $50,000.
How Much Do Sales Reps Make?
The average pay for a sales representative in the United States is $79,451 per year. This includes an average salary of $52,173 per year, with commissions averaging $27,277 per year. Additional pay may include cash bonuses, commissions, tips, and profit-sharing.
However, one’s income as a sales representative can vary widely based on several factors. Keep reading to learn more.
According to the Industry
A salesperson’s income is greatly influenced by the industry they work in. A more complicated product or service usually yields higher pay since complex products require greater expertise and knowledge. Here’s how sales representative salaries vary across different industries:
Technology
- Average Total Compensation: $81,942
- Average Annual Base Salary: $54,727
- Estimated Additional Pay: $27,215
(Glassdoor, April 2022)
The tech industry is the fastest-growing industry in the world. So it’s no surprise that tech sales can be a very lucrative career (more about tech sales here). San Mateo, CA currently tops the list of the highest-paying cities for technology sales reps.
Medical
- Average Total Compensation: $99,576
- Average Annual Salary: $70,683
- Estimated Additional Pay: $28,893
(Glassdoor, April 2022)
The medical field is a large and complex industry that also offers a high salary for salespeople. Sunnyvale, CA currently ranks at the top of the best-paying cities for medical sales reps. A remote hospital sales representative makes an average of $101,875 per year.
Industrial
- Average Total Compensation: $90,896
- Average Annual Salary: $62,650
- Estimated Additional Pay: $28,246
(Glassdoor, April 2022)
The industrial industry, which sells parts and machinery for manufacturing companies, offers a wide range of salaries due to its scale and diversity. The best-paying city for industrial sales is San Mateo, CA. Nationwide, in-home sales positions are topping the industry, with an average salary of $95,741.
Finance
- Average Total Compensation: $83,998
- Average Annual Salary: $54,006
- Estimated Additional Pay: $29,993
(Glassdoor, April 2022)
In the finance industry, the base salary is usually lower than others, but the commission potential is much higher. San Francisco, CA ranks highest for financial sales reps, and remote independent sales representatives make an average of $119,403 per year.
Advertising
- Average Total Compensation: $89,508
- Average Annual Salary: $59,990
- Estimated Additional Pay: $29,518
(Glassdoor, April 2022)
Advertising likewise offers slightly lower salaries, but with higher commission rates. There is more potential for higher earnings in certain locations, with Lakes, AK surprisingly topping the list. The highest-paid advertising sales job is in global advertising, with an average of $92,359 per year.
According to the Experience Level
Experience level is another factor that affects a sales rep’s compensation. Sales representatives are usually categorized as entry-, mid-, or senior-level. Let’s examine each one and their income potential.
Entry-Level
- Average Total Compensation: $69,497
- Average Annual Salary: $43,239
- Estimated Additional Pay: $26,258
(Glassdoor, April 2022)
An entry-level representative’s income potential depends on their expertise and experience, so be sure to highlight these in the sales rep interview. New sales reps with two or fewer years of experience can easily make over $60,000 in a year.
Mid-Level
- Average Total Compensation: $79,741
- Average Annual Salary: $52,173
- Estimated Additional Pay: $27,277
(Glassdoor, April 2022)
Mid-level sales reps usually have between two and four years of experience, and can make over $90,000 a year as they advance toward senior-level positions.
Senior-Level
- Average Total Compensation: $212,673
- Average Annual Salary: $173,966
- Estimated Additional Pay: $38,707
(Glassdoor, April 2022)
Senior-level sales reps, typically with five to seven years in the industry, are the most experienced at sales development and usually make the most money. Executive-level salaries in sales can reach impressive amounts, topping $375,000 a year. These executive-level representatives are also leaders in management, filling roles such as Vice President of Sales.
According to the Compensation Structure
Sales representatives can be paid in different ways. The most common types of compensation structures for sales reps are:
- Salary only
- Base salary plus commission
- Commission only
Each compensation structure has its own perks and drawbacks. Let’s take a look at each one.
Salary Only
A salary-only compensation structure provides salespeople with a fixed salary. This compensation structure is relatively rare in sales. Without commission, reps are generally less motivated to exceed their quotas because they have no incentive to.
Perks:
- Steady, predictable income
- Less stress
Drawbacks:
- Less motivation to exceed quotas
- Lack of earning opportunities
Base + Commission
With a base salary plus commission compensation structure, you’ll receive a set salary every year, but with additional earned commissions based on your sales. According to a recent survey, this is the most common pay structure, with 48.8% of businesses offering base salaries and commissions.
Salary percentages depend on the company, industry, and sales position. The standard salary-to-commission ratio for sales is 60-40, meaning employees receive 60% salary and 40% commission.
Perks:
- Guaranteed income
- Increased earning potential and performance rewards
- Opportunities for growth
Drawbacks:
- Low salary
- Slightly less incentive to make sales than in a commission-only structure
- Complicated structures can cause confusion
Commission Only
Sales reps who are only paid a commission are only compensated when they make a sale. This isn’t the most common pay structure. Only 11.6% of companies pay their employees exclusively in commission. There are several types of commission-only structures, including:
- Straight Commission: Sales x Commission Rate = Income
- Residual Commission: Payment x Commission Percentage = Total Commission
- Revenue Commission: Sale Price x Commission Percentage = Total Commission
- Territory Volume Commission: Sales Totals x Commission Percentage / Number of Salespeople = Commission Total Per Person
Commission-only compensation may be optimal for experienced salespeople working in lucrative industries or locations. Although there isn’t a guarantee of a regular salary, the income potential of even a single sale is enormous.
Perks:
- High sales and earning potential. When salespeople are paid for success, they work harder at closing deals and, in turn, have more potential for earning high commissions.
- Reduced costs. Managers can control labor costs or maximize sales efficiency by only paying workers for what they accomplish.
Drawbacks:
- Unpredictable income. Market conditions and failed deals can lead to an inconsistent income without a salary guarantee.
- Higher risk. You may be viewed as a higher risk by banks when qualifying for loans.
