Software Sales Salary & Commission Structures Explained: Ranges, Averages & How Much Reps Make

You’re a self-confident, communicative, and creative professional surveying various job categories. You want an exciting career that pays well and offers ample growth opportunities. You enjoy interacting with many different people. Well, the software sales industry could be a great fit for you.

Entry-level software sales salaries are competitive, making tech sales a strong career path even for beginners.

In addition, there could be location-based pay components to account for a higher cost of living (if you live in a metropolitan area). And if you find the right employer with a great fit, you can live your ideal lifestyle.

In this article, let’s explore the software sales career in detail, including the earning potential, job requirements, career growth opportunities, and more. After reading, you’ll have a clear idea of the financial aspects of a career in technology sales. Let’s get started!

What is Software Sales?

Software sales is the process of a sales rep selling software products to prospects of all sizes, from individuals to large organizations. Depending on the price and product complexity, selling software as a service (SaaS) can involve a long sales cycle with multiple touchpoints from the marketing and sales teams.

As a salesperson, you’ll need to learn how the software you sell works and its benefits and features, as well as offer advice on integrating your software with your client’s existing tech stack. For some complex solutions, you may need to rope in engineers, product marketers, or technical sales specialists.

If we look back, Salesforce launched a customer relationship management (CRM) platform as a SaaS only in 1999. While it saw record growth, enterprise businesses initially didn’t fancy subscription-based software.

Since then, SaaS adoption has risen exponentially, with the likes of Microsoft, Apple, Oracle, and SAP entering and dominating the market. As the worldwide public cloud end-user spending grows, sales jobs at software companies continue to mushroom.

Software Sales Representative Job Requirements

Whether starting your career or contemplating switching professions, sales can be one of the most accessible jobs. While most sales reps have a bachelor’s degree, companies like IBM have reported that 10 to 15 percent of their new hires don’t have traditional four-year degrees.

Irrespective of your college degree, a strong desire or passion for building a sales career is important. If you have a track record of taking ownership of projects and getting results, your application makes a stronger case. Sales managers typically evaluate some of the following traits when hiring:

• your people and relationship-building skills,
• your ability to collaborate with teams,
• your proficiency in learning new and advanced technology,
• how effectively you communicate,
• and if you’re coachable (or have the right sales mindset).

Depending on your job title, there may be more specific and ambitious requirements. A SaaS startup is generally fast-paced and has a challenging environment.

You have to look beyond the resume to demonstrate the above skills. Recruiters could hunt you through your LinkedIn profile, so make sure you maintain a great one.

Your roles and responsibilities in a software sales job could include:

• cold calling,
• answering incoming calls and emails from leads,
• understanding your company’s product lines,
• qualifying prospects, managing your sales pipeline,
• building a rapport with clients,
• and closing deals.

What is the Average Salary in Software Sales?

The national software sales salary average is above $65,000 annually, with many reps boosting their income through commission.

You also get paid additional revenue through commissions, bonuses, or profit sharing. Software sales representative salaries vary depending on years of experience, skills, industry vertical, location, and other factors.

The salary range is pretty drastic: $39k - $128k (as per Payscale).

‎Entry-level software sales reps may begin at under $40k annually. But progressing in your career path to an account executive (at 5-9 years of experience) could bump your base salary to $60k or higher. As an experienced sales manager at the senior level, you may make close to six figures as your base.

‎If you’re ambitious and want to cross the 75th percentile, you can get compensated well for your hard work.

How?

By selling enterprise software.

According to recent Glassdoor data, top software sales representatives at leading companies such as Microsoft, Oracle, and Cisco can now earn between $198,000 and $369,000 per year in total compensation.

For example, Microsoft reports ranges of $221K–$369K, Oracle shows $198K–$336K, and Cisco falls between $203K–$341K annually. While these figures highlight the lucrative potential of software sales, the role remains high-pressure—success depends on consistently meeting ambitious quota targets, and falling short can quickly jeopardize job security 

‎For folks who want more flexibility, a remote sales job could be a better fit. You can take client calls and collaborate with your team from the comfort of your home.

You have a greater degree of freedom of autonomy, but the flipside of this is that you need to be really good at managing yourself effectively. Not everyone is capable of working with such a degree of independence.

Some remote companies, like ours, even offer the option of a four-day work week at 80 percent of pay for many roles. This allows you to prioritize what matters to you.

Software Sales Commission and Bonuses

Compensation for software sales roles varies by industry, company structure, and team goals. A typical annual package includes a base salary (fixed pay), commissions for achieving or exceeding sales quotas, and often additional incentives such as signing bonuses or stock options (depending on the employer).

Based on the latest reported data, here are examples of how total pay breaks down across industries:

As you can see, software sales compensation is heavily influenced by the industry. For instance, professionals in Pharma & Biotech or Aerospace & Defense tend to earn more than those in Agriculture or Arts & Entertainment, reflecting the revenue potential and complexity of deals in those markets.

Your pay rises with years of experience, but it also depends on the size of the accounts you handle.

For an SMB account size, the average annual compensation is $50.3k in base salary, $21.2k in commissions, and $2.4k in signing & stock. Compare that with a key account representative, where the base jumps to $55.2k. The commissions also increase to $25.8k, and the signing & stock bump to $3.7k.

There are also geographic differentials in most pay packages.

As per Payscale, a sales development representative (SDR) in San Francisco may earn 19.9 percent higher than the national average. In New York, they may make 11.2 percent higher than the average.

The compensation increase accounts for the higher cost of living in metropolitan areas.

As you rise through the ranks in your sales career, your base salary, commissions, and other components also jump significantly.

For instance, for a Salesforce Sales Manager:

• The annual base salary ranges from $124K – $188K/yr, with a median of $153K/yr.
• The bonus typically falls between $43K – $80K/yr, with a median of $57K/yr.
• The commission adds another $85K – $158K/yr, with a median of $113K/yr.

Altogether, the median total compensation comes to an impressive $323K per year, with top earners reaching up to $426K annually.

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Beyond all of the above variables, your employer ultimately decides what your role is worth to them.

At the time of writing this article, Bill.com and NetSuite were hiring for a business development representative role. Both needed a year of work experience. And consider it an SDR sales role for a mid-market account size. But Bill.com offered a total compensation of $82k vis-a-vis NetSuite’s $75k.

So before you take up a job, look carefully at the compensation plan and the benefits you’ll receive. You may even get the option to choose a commission structure for your role, so do your homework before hopping on that final interview call.

Types of Software Jobs Available

The SaaS industry not only offers lucrative software sales jobs at the beginning of your career—you can expect ample growth opportunities to come your way after you join. All you need to do is learn new skills relevant to the senior roles (like managing a sales team) and be willing to shoulder additional responsibilities.

I have divided common sales jobs into four types for your understanding. Let’s examine a few titles, their responsibilities, and the annual incomes you can expect to make under each.

Entry-Level Sales Jobs

Let’s start with the common positions where you may begin your sales career.

Sales Development Representative (SDR)

As an SDR, your responsibilities may include cold calling, generating leads and qualifying them for your team, and building a relationship with prospective clients.

You typically don’t need prior experience to start. But the job could be challenging. You may juggle a huge number of calls and emails to identify prospects that are the right fit for your software products. Typically, SDRs don’t close deals—they set appointments for senior members and let them handle the rest of the sales cycle.

The average base salary for a Sales Development Representative ranges between $50K – $71K per year. When factoring in commissions, bonuses, and other additional pay (typically $30K – $55K annually), the median total compensation comes to about $99K per year.

(Data derived from Glassdoor)

‎Business Development Representative (BDR)

Most companies use the titles BDR and SDR interchangeably, with similar responsibilities. However, business development professionals may work more often on outbound prospecting. Ultimately, they also hand over their opportunities to senior team members.

The average base salary for a Business Development Representative falls between $57K – $80K per year. With commissions, bonuses, and other additional pay (typically $38K – $71K annually), the median total compensation comes to about $118K per year.

(Data derived from Glassdoor)

‎Mid-Level and Sales Management Jobs

You may need to hone different skill sets to progress to managerial roles, but the rewards make the effort worth it. Let’s look at a few senior sales jobs.

Account Executive (AE)

The primary role of AEs is to close the deals that SDRs hand off and manage client relationships. Sure, some of your day-to-day responsibilities still overlap with SDR (such as making calls), but you’ll work with warmer leads. Typically, you become an AE only after a year or two of experience as an SDR.

The average base salary for an Account Executive ranges between $60K – $101K per year. With commissions, bonuses, and other additional pay (typically $41K – $77K annually), the median total compensation comes to about $133K per year.

(Data derived from Glassdoor)

‎Account Manager

As an account manager, you’ll be the primary contact for clients once a deal is closed. You’ll provide product support, report bugs to the engineering team, and persuade your clients to renew their contracts. You might also upsell new features and explore opportunities for customers to use your products in more areas of their businesses.

As an account manager, you’ll have a higher fixed base salary than junior roles, besides quotas and commissions for upselling and renewals.

The average base salary for an Account Manager falls between $59K – $90K per year. With commissions, bonuses, and other additional pay (typically $33K – $62K annually), the median total compensation comes to about $117K per year.

(Data derived from Glassdoor)

‎Sales Manager

When a company has become big enough to have a sales team, sales managers are roped in to execute the strategy set by higher management (often the VP of sales or chief revenue officer). Here you’ll be held directly responsible for the performance of your team. So you need a different set of skills like the ability to train, motivate, and manage your team members.

The average base salary for a Sales Manager ranges between $59K – $99K per year. With commissions, bonuses, and other additional pay (typically $36K – $67K annually), the median total compensation comes to about $124K per year.

(Data derived from Glassdoor)

‎Specialized Sales Roles

Let’s look at a few specialized sales jobs that require a diverse skill set besides selling and are well-paying.

Technical Sales Engineer

Sales engineers are a rare combination of technical skills and business acumen. Their role is to understand the technical needs of their target market and pitch their software products as a solution to customers’ problems. They also provide technical advice and support to clients. (We often advise sales reps to learn how engineers handle prospect inquiries.)

This role requires advanced technical knowledge, which can come from a college degree or real-world work experience (as a software engineer or a related job). Therefore, the pay is commensurate with these requirements.

The average base salary for a Technical Sales Engineer ranges between $78K – $113K per year. With commissions, bonuses, and other additional pay (typically $38K – $71K annually), the median total compensation is about $145K per year.

(Data derived from Glassdoor)

‎Sales Operations Manager

Working in sales operations will involve streamlining everyday tasks for your sales teams and removing any obstacles that might turn up in your sales funnel. You’ll also support the team by trying to improve or automate sales processes and creating supporting marketing material.

You’ll also manage the sales pipeline, track business and sales metrics, perform sales forecasts, and share data with upper management to make strategy adjustments.

The average base salary for a Sales Operations Manager ranges between $70K – $109K per year. With commissions, bonuses, and other additional pay (typically $22K – $42K annually), the median total compensation comes to about $117K per year.

(Data derived from Glassdoor)

‎Outside Sales Rep

An outside sales rep or salesperson is responsible for building relationships and selling to markets outside of your company’s primary ones. You may travel to meet with new buyers and deliver product demos—or sell remotely via email and video conferencing.

The average base salary for an Outside Sales Representative ranges between $67K – $103K per year. With commissions, bonuses, and other additional pay (typically $41K – $76K annually), the median total compensation comes to about $137K per year.

(Data derived from Glassdoor)

‎Sales Leadership & Executive Jobs

Finally, let’s look at the executive sales team’s job roles, responsibilities, and compensation.

VP of Sales

Congratulations, you’re officially a big shot with this vice president (or head of sales) tag. But this role comes with a high stakes goal: responsibility for growth in sales of the entire company.

You’ll often collaborate with other stakeholders to create or approve a sales strategy. And depending on the size of the company, you’ll hire & fire other salespeople, manage your team, and the like.

The average base salary for a Vice President of Sales ranges between $121K – $203K per year. With commissions, bonuses, and other additional pay (typically $112K – $209K annually), the median total compensation comes to about $306K per year, while the average salary is around $291K annually.

(Data derived from Glassdoor)

‎Chief Revenue Officer (CRO)

Usually, only a role offered in large corporations—as a CRO—you’re responsible for the revenue of the entire organization. This could be deemed as the pinnacle of a career in software sales.

Your responsibilities include collaborating with the VP of sales to set goals & KPIs, developing sales playbooks, etc. As you oversee all other business activities that impact revenue, you’ll ensure alignment with other relevant revenue departments like product, marketing, and customer success.

The average base salary for a Chief Revenue Officer ranges between $180K – $315K per year. With commissions, bonuses, and other additional pay (typically $256K – $478K annually), the median total compensation comes to about $579K per year, while the average yearly compensation is around $410K.

(Data derived from Glassdoor)

Software Sales Salaries: Are You on Track for Success in Your Career?

SaaS sales is a great way to venture into the tech industry. You can get compensated well even at the entry level if you manage to hit sales goals and unlock commissions for yourself.

Hopefully, the average salary data in this article will help you decide on your software sales career. Up next, explore our resources to learn the ins and outs of the industry.

Want to learn how to make it in software sales? Download your complimentary copy of our Sales Library, which includes our book on SaaS sales, checklists, templates, scripts, and more!