How Much Does Tech Sales Make? An In-Depth Analysis

 A lot of people try to get into tech sales with dreams of looking at their bank accounts with a smile on their faces. The truth is, not many achieve this dream. But, with the right research and prep, you can find the right balance between a fulfilling career and a lucrative paycheck.

Understanding the earning potential in the tech industry can help you plan your career development, negotiate better salaries, and identify growth opportunities.

On average, a tech sales professional in the United States can earn between $70,000 and $230,000. Looking at these numbers, you may be curious about the wide salary range. The truth is that several factors affect the total compensation.

We’ll provide an in-depth analysis of tech sales salaries to give you an idea of how much to expect. We'll also discuss the aspects that influence tech sales salaries and share tips to boost your earnings.

Tech Sales Salary Structure

Most tech sales professionals earn a base salary and variable pay, which make up the total on-target earnings (OTE).

Let's break down the common salary structure below:

• Base salary: This is your guaranteed income, which is the amount you’ll see on every paycheck regardless of performance. Typically, the base salary forms around 50% of the total OTE.
• Variable pay: The other half of the OTE comes from variable pay, which covers commissions, bonuses, incentives, and equity or stock options. This part of your salary grows significantly when you perform well at the business, such as selling more tech products and services.

A Detailed Analysis of Tech Sales Compensation

Let’s walk through a detailed breakdown of the total compensation for tech salespeople in the US.

Average Salary for Tech Sales Professionals

The average base salary in tech sales ranges from $70,000 to $126,000 annually.

This amount doesn’t include variable pay, which can significantly boost your total earnings.

If you factor in commissions and other incentives, the total yearly compensation falls between $126,000 and $230,000, which is a wide range.

For example, a senior tech sales professional can earn more money than an entry-level candidate.

Those in more specialized roles or at top-performing companies can also demand higher wages.

Salary Variations by Job Title

Your job title in tech sales can determine your total compensation.

For example, a technical sales representative, which is an entry-level position, can expect an average annual salary of $79,117.

Sales engineers, who provide technical expertise to help sell products, often have higher yearly wages. The average sales engineer's salary starts at $102,000.

Technical sales managers, who oversee a team of salespeople or a specific sales territory can earn around $159,000 per year.

If you advance to a vice president (VP) of sales role, salaries often exceed $200,000 annually.

Salary Ranges Based on Experience

Experience can significantly affect your earning potential in tech sales.

Entry-level candidates with less than a year of working experience have an average annual salary of $48,000 to $85,000.

Tech sales professionals with one to three years of experience can earn between $53,000 and $95,000.

Salespeople who have been working for more than five years but less than a decade enjoy a yearly wage of $67,000 to $119,000.

Experienced employees with more than ten years of experience can demand an annual salary starting at six figures.

5 Factors Influencing Tech Sales Salaries

The salary ranges above sound appealing, right? Let's dig into what factors can determine your pay so you know what to expect when you're searching for a job.

1. Role

Different tech sales roles demand varying salaries.

For example, if you’re working as a sales development representative (SDR), your primary focus is generating leads. 

This role doesn't require specialized technical knowledge or skills, so the salary might be on the lower end. It typically ranges from $61,000 to $100,000.

On the other hand, if you’re an account executive responsible for the entire sales process and closing deals, you can expect to earn more. The average account executive salary is $76,000 to $275,000 per year.

2. Experience

Your experience level is another factor that affects your earning potential in tech sales.

As you gain more experience, you can improve your ability to sell tech products and manage client relationships. This can lead to higher base salaries and variable pay.

Let's take the role of a customer success manager (CSM) as an example.

Entry-level CSMs can expect an annual salary between $66,000 and $97,000.

The average salary of a customer success manager with five to nine years of experience is around $71,000 to $117,000 per year.

Meanwhile, CSMs with more than a decade of working experience can demand a yearly wage of $76,000 to $220,000.

3. Location

Your location also plays an important role in determining your salary.

If you’re working in a tech hub like San Francisco, New York, or Seattle, you can expect higher salaries to offset the cost of living.

For example, you can earn a base pay of $80,000 in San Francisco, which is higher than the national average. If variable pay is included, the total compensation can reach $147,000 to $265,000.

Tech sales professionals living in New York can receive an average base pay of $75,000 per year. Meanwhile, the total salary range is between $142,000 and $261,000.

4. Company Size

The size of the company you work for can also influence your compensation.

Larger companies, especially those with a global presence, typically offer higher base salaries and more benefits.

For instance, when you work for a tech giant like Microsoft, you can expect a base salary of $129,000. When you count commissions and bonuses, your total pay can amount to $290,000.

However, this doesn't mean you should only apply to corporations. Startups can also offer competitive commission structures to attract top talents. 

Plus, they provide significant equity or stock options. When the startup quickly becomes successful or grows exponentially, you can earn a large sum of money.

5. Education Level

While experience is often more valuable in tech sales, your education level can still impact your salary.

If you have an advanced MBA degree, you can often command higher starting salaries.

Similarly, if you obtain specialized certifications in sales or technology, you can enhance your credibility and justify higher compensation.

How to Increase Your Earnings in Tech Sales?

Now that you know what can determine your salary in tech sales, it’s time to check out what you can do to make your paycheck as big as you can. Let’s go through some top tips on how you can maximize your income.

Meet and Exceed Sales Quotas

One of the most direct ways to increase your earnings in tech sales is by consistently meeting and exceeding your sales quotas.

The more deals you close, the more money you make.

You can also stand out among your peers when you sell more. This helps you earn special incentives and faster promotions.

So, look for ways to optimize your sales process, such as improving your pitch, completing an online sales course, or learning more about the products you sell. Talk with your employer and see if they’re happy to fund upskilling opportunities you may find. You’ll become better at your job, and they’ll have a highly-skilled employee, so it’s a win-win for everyone involved.

Specialize in High-Demand Technology Sectors

In general, the tech job market can pay more money than other industries. However, different tech fields offer varying salaries.

You might want to focus on high-demand and rapidly-growing tech sectors like AI, cybersecurity, or cloud computing.

Employers are willing to pay top dollar for technical sales professionals who can effectively sell these complex and cutting-edge solutions.

You can obtain certifications or take online courses in these areas to improve your expertise and boost your earnings.

Gain More Experience

Your experience level is important if you want to enjoy a higher salary.

The more time you spend in the tech industry, the more you learn about customer needs, product offerings, and effective sales strategies.

You can also build a strong track record of successful deals and satisfied clients. This helps you command greater compensation.

Companies are always seeking seasoned professionals who can hit the ground running, so take advantage of every opportunity to gain more experience. 

For example, you can take a challenging task at your current job or apply to roles with greater responsibility.

Target High-Growth Companies

High-growth companies, which include both large corporations and startups, offer highly competitive salary packages to attract top sales talent.

These organizations aim to expand in different regions, so they need aggressive sales professionals to drive their growth.

If you’re willing to take on the challenge, targeting these fast-moving companies could be your ticket to higher earnings.

Consider Relocating

Location matters in tech sales, and sometimes the best way to increase your earnings is by moving to a region where salaries are higher.

As previously mentioned, tech hubs like San Francisco, New York, and Seattle offer some of the highest salaries in the industry.

However, there’s also increasing opportunity in emerging tech cities like Austin and Denver.

Consider relocating to these areas if you want a substantial increase in your base salary and total compensation package. Just make sure to factor in the cost of living to ensure that the move makes financial sense for you.

Build a Strong Professional Network

When you build strong relationships within the industry, you can open doors to higher-paying opportunities and gain valuable referrals.

You should focus on networking with peers on LinkedIn, attending industry events, or reaching out to mentors for advice.

Negotiate Your Salary

Finally, don’t underestimate the power of negotiation when it comes to your salary.

Whether you’re accepting a new job or seeking a raise at your current position, learning how to negotiate your salary can make a significant difference in your earnings.

You can research industry salary standards, understand the value you bring to the table, and present your case with confidence. Make sure to explore different strategies and see what works best for you and your goals. Do only what you’re comfortable with and don’t try too hard to be out of your comfort zone.

Let Better Career Help You Highlight Your Value

Need further help with negotiating your tech sales salary, job searching, and taking your career to the next level? Here's how Better Career can assist you:

• Job Accelerator Program: Follow our step-by-step guide to land a tech job quickly and efficiently. Whether you want to be a Sales Engineer, Customer Success Professional, or Project Manager, our mentorship program is designed to accelerate your tech career. Say goodbye to the frustration and guesswork of a typical job search.
• 1-on-1 Career Coaching: Work closely with former tech leaders turned career coaches to land your next Sales or Sales Engineering role, or advance your career. We'll customize the program to meet your unique goals and needs.
• B2B Tech Job Board: Connect directly with key people at hiring companies through our curated job board for B2B tech positions. This includes direct LinkedIn profiles and posts for each listing.

Haven't found what you're looking for? Fill out our contact form, and we'll get in touch with you soon!

FAQs About How Much Does Tech Sales Make

How much can you make in tech sales jobs?

In tech sales, you can earn between $70,000 and $230,000 annually, depending on your role, experience, and location. Entry-level positions start lower, but with commissions and bonuses, the total compensation can quickly become larger.

How much is the average commission for tech sales professionals?

Average commissions for tech sales professionals range from 10% to 20% of the total sales. They can earn even more when they close deals with high-end clients.

What is the highest-paid technical sales position?

The highest-paid tech sales roles are typically sales managers or VPs of sales. They have base salaries often exceeding $150,000 per year. Meanwhile, the total annual compensation can reach more than $200,000, when bonuses and commissions are included.

Which cities pay the highest for tech salespeople?

Cities like San Francisco, New York, and Seattle have the highest salaries for tech sales professionals. Companies in these areas can offer higher base salaries and variable pay than the national average.