Sales Manager Salary in USA 2025
Base pay + commission structure and total compensation breakdown
Sales Manager Total Compensation
How Sales Compensation Works in 2025
Sales professionals earn through a combination of base salary plus variable compensation (commissions, bonuses, and incentives). Understanding this structure is essential for evaluating sales roles and negotiating compensation.
Sales manager compensation is complex: the typical structure is 60–75% base salary plus 25–40% variable, with total earnings ranging from $80,000–$200,000+ depending on role, industry, and performance.
Three Main Compensation Models
Base salary + commission: Most common—fixed base plus percentage commission on every sale
Tiered commission: Higher percentage at higher revenue levels, rewarding top performers
Base salary + fixed bonus: Quota-based bonuses, common for SDRs/lead generation roles
Account Executives and Sales Executives have the highest commission ratios: 25–60% base, 40–75% commission. SDRs have more stability: 70–80% base, 20–30% commission. Top sales performers can reach $100K+ and well beyond. For broader context, see the average salary in the US.
Sales Compensation Models Explained
Understanding each model helps you evaluate opportunities and negotiate effectively:
| Compensation Model | How It Works | Best For |
|---|---|---|
| Base + Commission | Fixed base + % of sales | AEs, Sales Managers, most roles |
| Tiered Commission | Commission % increases at tiers | Enterprise sales, high quotas |
| Base + Fixed Bonus | Fixed base + quota bonus | SDRs, MDRs, lead gen |
| Straight Commission | 100% commission, no base | Experienced reps, specific industries |
Model 1: Base Salary + Commission
How it works: Fixed base salary plus percentage commission on every sale
Example: Base $60,000 + 5% commission on sales. If sales rep closes $1,000,000 in deals: $60,000 base + $50,000 commission = $110,000 total
Typical splits: Account Executives: 25–60% base, 40–75% commission. Sales Managers: 60–70% base, 30–40% variable. SDRs: 70–80% base, 20–30% commission.
Pros: Financial stability plus unlimited upside; aligns rep and company goals
Cons: Income volatility; stress during slow periods
Model 2: Tiered Commission Structure
How it works: Commission percentage increases as reps hit higher revenue targets
Example: 5% on first $100,000 in sales = $5,000. 7% on next $100,000 = $7,000. 10% on anything above $200,000. Rep who sells $400,000: $5K + $7K + $20K = $32,000 commission + base salary
Who uses it: Enterprise sales teams, Account Executives, companies with large quotas
Pros: Motivates top performers to exceed targets; accelerates at key thresholds
Cons: Complex tracking; potential disputes; requires clear systems
Model 3: Base Salary + Fixed Bonus
How it works: Fixed salary plus fixed bonus for reaching pre-defined quota
Example: Base $70,000 + $2,000 bonus for every 10 deals closed. Close 40 deals in year = $70,000 + $8,000 = $78,000
Who uses it: SDRs, Marketing Development Reps (MDRs), lead generation roles
Pros: Simple to track and calculate; predictable for budgeting
Cons: Doesn't incentivize performance above quota; capped upside
Sales Salary by Role and Seniority
Compensation varies dramatically by sales role:
| Sales Role | Base % | Variable % | Base Salary | Total Comp Range |
|---|---|---|---|---|
| SDR/BDR | 70–80% | 20–30% | $45K–$65K | $55K–$85K |
| Account Executive | 25–60% | 40–75% | $60K–$90K | $100K–$250K+ |
| Sales Manager | 60–70% | 30–40% | $80K–$120K | $120K–$200K+ |
| Sales Director/VP | 65–75% | 25–35% | $120K–$180K | $180K–$350K+ |
Sales Development Representative (SDR/BDR)
Compensation split: 70–80% base, 20–30% commission
Base salary: $45,000–$65,000
Total comp: $55,000–$85,000
Focus: Lead generation, cold outreach, qualifying prospects, booking meetings for AEs
SDR is the entry point into sales—high base provides stability while learning the craft.
Account Executive (AE) / Sales Executive
Compensation split: 25–60% base, 40–75% commission
Base salary: $60,000–$90,000
Total comp: $100,000–$250,000+ (high performers)
Focus: Closing deals, managing full sales cycle, quota attainment
AEs have the highest variable compensation—top performers earn $200K–$250K+.
Sales Manager
Compensation split: 60–70% base, 30–40% variable
Base salary: $80,000–$120,000
Total comp: $120,000–$200,000+
Focus: Team leadership, coaching, strategy, pipeline management
Managers balance individual contribution with team development. Variable often tied to team performance.
Regional Sales Director / VP Sales
Compensation split: 65–75% base, 25–35% variable
Base salary: $120,000–$180,000
Total comp: $180,000–$350,000+
Focus: Multi-team leadership, strategic planning, executive reporting
Senior leadership roles command premium compensation with significant upside potential.
How Sales Commissions Are Calculated
Step-by-step commission calculation examples:
Example 1: Simple Base + Commission
Base salary: $3,000/month ($36,000/year)
Commission rate: 5%
Monthly sales: $20,000
Commission earned: $20,000 × 0.05 = $1,000
Total monthly: $3,000 + $1,000 = $4,000
Total annual: $48,000
Example 2: Tiered Commission
Base salary: $60,000/year
Annual sales: $400,000
Tier structure: First $100K at 5% = $5,000. Next $100K at 7% = $7,000. Above $200K at 10% = $20,000 (on $200K additional)
Total commission: $5K + $7K + $20K = $32,000
Total compensation: $60K + $32K = $92,000
Example 3: Fixed Bonus (SDR Model)
Base salary: $70,000/year
Bonus structure: $2,000 per 10 qualified meetings booked
Meetings booked: 40 in year
Bonuses earned: 4 × $2,000 = $8,000
Total compensation: $70K + $8K = $78,000
| Scenario | Base | Sales/Activity | Commission/Bonus | Total Comp |
|---|---|---|---|---|
| Simple commission | $36,000 | $240K sales @ 5% | $12,000 | $48,000 |
| Tiered commission | $60,000 | $400K sales (5/7/10%) | $32,000 | $92,000 |
| Fixed bonus | $70,000 | 40 meetings (10 = $2K) | $8,000 | $78,000 |
Top Performers vs. Average Sales Earnings
Performance creates massive income disparity in sales:
| Performance Level | AE Total Comp | Sales Manager Total Comp |
|---|---|---|
| Below quota (<80%) | $70K–$90K | $100K–$130K |
| At quota (100%) | $100K–$130K | $140K–$180K |
| Above quota (150%+) | $180K–$250K+ | $200K–$300K+ |
Average Performers (Meet Quota)
Account Executive: $100,000–$130,000 total comp
Sales Manager: $140,000–$180,000 total comp
Top Performers (150–200% of Quota)
Account Executive: $180,000–$250,000+ total comp
Sales Manager: $200,000–$300,000+ total comp
Underperformers (Below Quota)
May earn only base salary or less than 80% of target compensation. Risk of performance improvement plans or termination.
Sales is one of the few careers where individual performance directly determines earnings, creating massive income disparity within the same role. A top performer can earn 2–3x what an average performer makes.
What Sales Managers Do: Role and Responsibilities
Core Responsibilities
Leading sales teams, setting quotas, coaching reps, managing pipeline, forecasting revenue, hiring and training, strategic planning, and reporting to executives.
Individual Contributor vs. Manager Track
Account Executives focus on personal sales and closing deals. Sales Managers focus on team success and development. Some organizations offer "player-coach" roles combining both.
Performance Metrics
Team quota attainment, individual rep development, win rates, pipeline health, average deal size, sales cycle length, and forecast accuracy.
Job Outlook and Career Growth
Excellent Outlook
Sales is always in demand across industries. The commission-based model means companies can scale hiring with revenue. Economic cycles affect sales, but skilled salespeople remain valuable.
Career Progression
SDR → Account Executive → Senior AE → Sales Manager → Regional Director → VP Sales → Chief Revenue Officer (CRO)
Industry Mobility
Sales skills transfer across sectors, providing flexibility. SaaS/tech sales command the highest compensation, but sales expertise is valuable in every industry.
How to Maximize Your Sales Earnings
Exceed Quota Consistently
Top performers earn $180K–$250K+ versus $100K–$130K for average. Performance is the biggest lever.
Target Roles with High Commission Splits
AEs with 50%+ commission potential have the highest upside. Higher risk but significantly higher reward.
Sell High-Value Products
Enterprise software, SaaS, medical devices, and financial services offer larger commissions than low-ticket items.
Work for Companies with Tiered Commissions
Accelerators reward performance above quota. Look for structures that increase commission rates at higher tiers.
Develop Strategic Selling Skills
Consultative selling, relationship building, and deal structuring command higher close rates and larger deal sizes.
Progress to Management
Sales managers earn $120K–$200K+ base plus variable, with more stability than individual contributor roles.
Specialize in High-Growth Industries
SaaS, tech, and fintech offer the best compensation packages. These industries value sales talent highly.
See our salary negotiation guide and high-paying jobs without degree guide (sales is a top option).
Frequently Asked Questions
What is the average sales manager salary in 2025?
Sales managers earn $120,000–$200,000+ in total compensation, with base salaries of $80,000–$120,000 (60–70% of total) plus 30–40% variable compensation. Top performers exceed $200,000.
How are sales commissions calculated?
Most commonly: Base salary + percentage of sales closed. Example: $60,000 base + 5% commission on $1M in sales = $60,000 + $50,000 = $110,000 total. Tiered structures increase the percentage at higher sales levels.
What is the typical base salary vs. commission split?
It varies by role: SDRs: 70–80% base, 20–30% commission. Account Executives: 25–60% base, 40–75% commission. Sales Managers: 60–70% base, 30–40% variable. Senior roles lean more toward base salary.
Do sales managers get commission?
Yes, but typically less than AEs. Sales managers usually have 60–70% base and 30–40% variable, often tied to team performance rather than individual sales. Some player-coach roles include both personal and team-based commissions.
What is a tiered commission structure?
Tiered commission increases the percentage you earn at higher sales levels. Example: 5% on first $100K, 7% on next $100K, 10% on sales above $200K. This rewards top performers who exceed quota with accelerated earnings.