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What is a sales representative's salary?

By Zippia Team - Oct. 12, 2021

The salary of a sales rep can vary greatly depending on the type of sales rep and the commission structure of the position. Keep in mind that 17% of sales rep positions do not have a commission-based pay structure, rather what you earn as your hourly rate.

However, over 35% of sales rep positions do pay both an hourly rate and a commission. About 17% use a base plus commission plus bonus plan (i.e., best case scenario - base pay plus opportunity to make money).

While 14% of companies use a draw against commission (i.e., pay is based on an advance payment), and 10% of commissioned sales rep positions use straight commission (no base rate, just commission).

The typical commission rate for sales starts at about 5%, which usually applies to sales teams that have a generous base pay. The average in sales, though, is usually between 20-30%.

What is then a good commission rate for sales? Some companies offer as much as 40-50% commission. However, these are typically sales reps that require more technical skills and knowledge, plus have a compensation structure that relies more heavily on commission.

How competitive your commission, though, depends largely on what industry your company works in. According to the BLS Occupational Employment Statistics (OES) survey, the 2019 sales commission averages for industries are:

  • Engineering: $112,780 per year

  • Securities, Commodities, and Financial Services: $93,090 per year

  • Wholesale and Manufacturing, Technical and Scientific Products: $92,980 per year

  • Insurance: $67,780 per year

  • Advertising: $64,660 per year

  • Real Estate: $62,060 per year

  • Retail: $29,360 per year

What is a sales representative's salary?

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