This question is about outside sales representative, outside sales, and outside sales representative salaries.

How are outside sales reps paid?

By Zippia Team - Nov. 2, 2021

Outside sales representatives are paid in a variety of ways, some of which involve salary, commission, or both.

Sales representatives that work on commission only can earn large amounts of money based on their sales. A typical commission is 20 to 40% of a salesman's gross sales. There are no limits on how much the representative can make, but there is pressure to sell as one's entire income is sales-dependent.

A less risky form of payment is a salary and commission split. A representative typically earns 60% of their income from salary and 40% from sales commissions. With this type of pay structure, there is less pressure and more opportunity for training.

Other companies will adopt a base salary and bonus structure. In this case, sales representatives will receive a predetermined salary, and if their sales goals are met, they will receive a predetermined bonus. This is the safest payment option, but it limits the earnings of the sales rep.

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