If you are looking to enter the world of sales and marketing the opportunities are everywhere for you to either land a job or build a career. The big question many people have though is what to expect for sales and marketing salaries.
As a company founded on helping you with your cold email marketing, the Send Koala team wanted to go over what you may be able to expect as a salary for a sales and marketing position.
If you are a company looking to figure out what type of pay structure will work best for hiring a sales team, our team also aims to help you by breaking down different salary types.
As a quick disclaimer, these are estimates and can vary depending on experience, location and the company itself.
Let’s dive in!
One sales and marketing salary is that you may land a position that is 100% commission. This means that you have no base level of pay to fall back on if you underperform. Being on 100% commission is not a bad thing though, if you have the skills and time to dedicate, you may be able to pull more hours than the average salesperson. Theoretically, this means the more time you can spend conducting sales activities, the more sales you make, and then the higher your paycheck will be.
Choosing a position like this is best suited if you may not have a need to pay large amounts of bills month to month and can afford to have variance in your paycheck. You will also be counted as a contractor more often than not, so you will have to keep that in mind if benefits are important. Alternatively, if you are a confident and skilled salesperson, you could feel fairly secure in this type of position.
In addition to this, commission-only positions are often huge motivators for salespeople because there is no fallback.
Sales and marketing salaries almost always have some form of commission attached because it is a great motivator for salespeople. Under this type of pay, you may have a base salary of maybe $500-$1000 a month and then anything else is fully commission-based. In these cases commission may be lower than straight commission because even if you don’t perform well, you still get paid.
Having a base pay is a small security blanket for the months when sales may be low. Some sales people may shy away from these because they feel it shows the company is not as confident in the sales teams skills to be on commission only…meaning they do not think their team will perform without a cushion.
This type of commission pay may or may not have a base salary attached, but the big difference with this is that your commission percentage is determined by your total sales. Sales made or categorized into tiers, so the more you sell, the higher potential of increasing your percentage is.
For example, under $15000 in sales may be only 5% in commission, but above that may be 15% and it may increase with each sales bracket.
Some sales positions are straight salaries with no commission. This is common in places with a goal of inbound leads rather than having salespeople go after leads. The big drawback here is there is a minimal incentive for the salesperson. Commission pushes salespeople to perform a certain way to earn more, having a straight salary means everyone is on the same level.
If you are on salary with no commission, the average pay tends to float around $20-$23 hourly. This works out to be roughly $45,000 a year (give or take).
The model of sales and marketing salaries revolves around the price point of the product sold rather than total sales made. Straight commission is based on total sales, whereas revenue commission varies depending on the item sold. For example, a $2000 service may earn a 15% commission for that salesperson.
All in all, there is no one size fits all model for sales and marketing salaries for companies. The pay rate and structure will often be determined based on the value of the products or services sold and where the company is at in terms of development.
If you are looking to start a career in sales, you need to be sure you know where you stand financially and what your base requirements are to cover bills. If you join a commission-only company, you need to be sure that you are confident enough in your ability to hit your minimum each month in order to cover expenses.