The following data came from an email from Taber Consulting. It’s a real pity that when you go to their web site you are forced to look and listen to lift music for a 28 second flash presentation before you can get to the home page and there is no button to bypass it! I thought those days were long gone! It’s a pity ‘cos there is some excellent information on their web site.
I would not recommend using these US corporate salary levels in your average start-up business plan…
The data below are for public and private companies with a direct sales model and revenues below $250 M/yr. We’re showing the averages, but specifics vary widely for individual firms. Thanks to PhoneWorks for these data.
The average SVP or EVP of Sales has an base of $187K/yr, and a commission structure of $170K/yr. To meet these average on-target earnings, they must achieve an overall quota of $31M/yr, and manage a staff of 14 (~10 reps).
The average VP of Sales pulls in about 10% less in most of the numbers, yet carries about the same quota and has to work with a price point that’s lower. Seems as if the extra $$ for an SVP is due to the complexity of the sale (length of sales cycle/high price point) and the skills/seniority of the leader.
These numbers reflect a gradual downward trend over the last few years. Quotas have moderated and price points have trended lower, so commissions have decreased as well. Similar trends have occurred in individual rep pay.
As you’d expect, Inside Sales compensation is significantly lower:
- Sales development – lead cultivation and appointment setting — has an average total package of about $130K for the manager and $80K for the rep.
- Telesales reps – who actually close deals – average $165K for the manager and $110 K for reps.
- Inside Sales Senior Mgt average $206K/yr and have to manage a quota of $63 M and a team of 22. The quota numbers are higher because of the short sales cycle and higher transaction volume.