SaaS Sales Compensation Benchmarks: Trends & Best Practices for 2025

Your SaaS company runs on the engine of its sales team. But misaligned compensation plans stall that engine, leading to rep churn, missed quotas, and forecasting chaos. 

If you're leading a sales organization, understanding the sales compensation benchmarks shaping compensation isn’t optional. It’s essential. For instance, did you know the median On-Target Earnings (OTE) for SaaS Account Executives is now $190,000? That’s with a base-to-variable split of 53:47, according to the Bridge Group’s 2024 report. 

Numbers like these reflect a bigger shift: compensation plans are becoming smarter, more performance-driven, and more aligned with long-term company goals.

And with competition for top talent only getting fiercer, you can’t afford to guess where your compensation structure stands. You need data. You need clarity. And you need a plan that works, not just for your revenue targets, but for the people hitting them.

In this blog, you’ll find exactly that: the key SaaS sales compensation benchmarks for 2025, along with real-world insights you can use to optimize your pay structure, motivate your team, and stay competitive in a changing landscape.

What Are SaaS Sales Compensation Benchmarks?

SaaS sales compensation benchmarks refer to industry standards that help companies structure competitive pay packages for their sales teams. These benchmarks include a range of metrics, such as base salary, on-target earnings (OTE), commission rates, and bonus programs. 

Essentially, they provide a guideline for businesses to ensure that their compensation plans are competitive, fair, and aligned with industry norms.

When you use benchmarks, you're making informed, strategic decisions. You're not guessing what your Account Executives should earn, you’re matching their potential with a plan that motivates, rewards, and retains.

Why SaaS Sales Compensation Benchmarks Matter

If you’re trying to build a high-performing sales team, your compensation plan needs to do more than just “make sense”. That’s where benchmarks come in. Here’s why they matter:

1. Attract Top Sales Talent

Great sales reps have options. If your offer doesn’t include competitive pay or the opportunity to earn higher commission for strong performance, you're going to lose out.

For example, AlleyWatch shows us that the average total compensation for a SaaS sales rep is around $126,000, with an even split between base and commission. Falling below that makes it tough to compete, especially for experienced reps who know their value.

2. Align Sales Efforts with Company Goals

Benchmarks help you tie compensation directly to your business objectives and go-to-market strategy, whether that’s landing new logos, driving upsells, or boosting renewals. 

When reps are rewarded for the right outcomes, performance improves across the board. You’re not just paying for closed deals; you’re paying for impact.

3. Reduce Turnover and Hiring Costs

A research on “The Effectiveness of Compensation in Maintaining Employee Retention" found that compensation and welfare were the most important factors in employee retention. 

Top performers stick around when they feel fairly rewarded. And when they don’t? You’re back to hiring, onboarding, and training again. Benchmarking helps you build plans that retain great people and reduce the cost (and chaos) of constant turnover.

4. Maintain Fairness and Compliance in Sales Team

Regularly benchmarking your comp plans helps identify gaps, especially those that may go unnoticed, like pay disparities between regions, roles, or even genders.

A Demand Gen report reveals that 33% of women in sales roles report feeling they are paid less than their male counterparts for the same work. Regular benchmarking can prevent such discrepancies. 

5. Support Scalability and Growth

As your team grows, your comp plan needs to scale with it. Benchmarks give you the foundation to do that whether you're expanding into new territories, adding a new segment, or onboarding your next 50 reps. 

A well-structured, benchmarked comp model supports growth without requiring a total reset every time the business shifts.

8 Key SaaS Sales Compensation Benchmarks for 2025

Compensation in SaaS has evolved, and in 2025, it’s more data-driven, personalized, and performance-oriented than ever. If you're building or revisiting your sales comp plan, these are the 8 benchmarks you need to keep on your radar.

1. Base Salary Ranges for SaaS Sales Reps

Base pay still forms the foundation of your compensation plan. Bridge Group report states that the range of SDRs typically falls in the $88,000–$177,000 range, while Account Executives (AE) can earn between $92,000 and $218,000, depending on experience, region, and deal size. Enterprise reps? Their base can go even higher. 

2. On-Target Earnings (OTE)

Source

On-target earnings (OTE) combine an AE's base salary and variable compensation, earned when quotas are fully met. Account Executives in SaaS earn a base salary ranging from $92,000 to $218,000, with a median OTE hitting $190,000 in 2024. This reflects a typical base-to-variable split of 53:47, according to The Bridge Group. If your OTE is far below market standards, you’ll struggle to attract or retain top performers. If it's too high without clear targets, you might be overpaying for underperformance.

3. Commission Rates

Source

Commission rates determine how much AEs earn when they close deals and achieve their quotas. According to The Bridge Group's SaaS AE Metrics Report, the median commission rate at 100% quota attainment is 11.5% of Annual Contract Value (ACV), with typical rates falling between 11% and 14%.

4. Performance Metrics

KPIs like closed revenue, customer retention rates, pipeline generation, win rates, and quota attainment are critical for measuring sales rep effectiveness. According to The Bridge Group’s SaaS AE Metrics Report, the median win rate for SaaS companies in 2024 was 19%, down from 23% in 2022. Clearly defined and achievable performance metrics like those above enable companies to set realistic targets and guide sales reps toward consistent quota attainment and predictable commission earnings.

5. Bonus Programs

Bonus programs are strategic tools designed to motivate sales teams beyond standard sales metrics, encouraging behaviors such as new customer acquisition, upselling, and achieving quarterly goals. Research indicates that well-structured incentive programs can significantly enhance sales performance. For instance, an Incentive Research Foundation study found that properly constructed incentive programs can increase performance by as much as 44%.

6. Sales Cycle Length

Sales cycle length directly influences quota-setting and sales performance. A study published in Harvard Business School found that shorter quota cycles improved performance among lower-performing salespeople by maintaining engagement throughout the period. However, for high-performing reps, shorter cycles led to a shift toward low-ticket items, reducing overall sales volume and profitability. Thus, aligning quota frequency with the actual sales cycle length is essential to optimize team performance.

7. Pay Mix Ratio

The pay mix ratio defines the balance between an Account Executive’s base salary and their variable compensation (commissions). According to Bridge Group’s SaaS AE Metrics Report, the median pay mix for AEs in 2024 is approximately 53% base salary and 47% variable pay. A balanced pay mix incentivizes high performance by rewarding reps directly for meeting or exceeding their quotas, while still providing a stable income base.

8. Quota-to-OTE Ratio

The quota-to-OTE ratio helps determine if a rep's quota is reasonable relative to their expected earnings. A common benchmark, according to Bridge Group's SaaS AE Metrics Report, is that the median quota-to-OTE ratio in 2024 is 4.2x, with typical ratios ranging from 3.2x to 4.8x. This ratio indicates that, for every $100K in on-target earnings (OTE), a representative's quota typically ranges between $320K and $480K, with a median at $420K. This ensures quotas are challenging but achievable.

How to Use SaaS Sales Compensation Benchmarks Effectively?

To ensure that SaaS sales compensation benchmarks drive optimal results, companies must integrate them strategically into their compensation plans. Here’s how to effectively use compensation benchmarks to maximize their impact:

Step 1: Align Compensation with Sales Objectives

Start by identifying your business priorities. Are you focused on acquiring new customers? Increasing the average deal size? Driving expansion revenue? Once you are clear on those goals, structure your compensation plan to support them.

• Set Clear Performance Targets: Establish compensation plans that reward specific sales goals, such as closing new deals, increasing upsells, or renewing contracts.

• Balance Short-Term And Long-Term Goals: Compensate reps for immediate sales success while encouraging customer retention and relationship-building for long-term success.

• Focus on Key Performance Indicators (KPIs): Compensation should be based on relevant KPIs such as customer lifetime value (CLV), churn rate, and new business acquisition.

Step 2: Motivate and Retain Top Talent

Benchmarks help you stay competitive in the talent market, but retaining high-performing salespeople requires more. Start by ensuring that your base salaries, variable pay, and earning potential are in line with current market standards. Then build in elements that keep motivation high over the long term.

• Create Attractive Pay Plans: Ensure that your base salary, commission, and OTE (On-Target Earnings) align with industry standards and market expectations.

• Offer Performance-Based Incentives: Use bonuses, accelerators, and SPIFFs (Sales Performance Incentive Fund) to reward overachieving reps. According to ICONIQ Growth’s 2023 Sales Compensation report, 82% of SaaS startups use accelerators to motivate sales teams.

• Recognize Non-Monetary Contributions: Publicly recognize achievements and top performers to boost morale and create a competitive, rewarding work environment.

Step 3: Incorporating Non-Cash Incentives

While cash compensation is essential, non-cash rewards often provide a sense of personal recognition and growth, which can increase job satisfaction and loyalty. Incorporating these incentives alongside traditional pay can help your compensation strategy stand out from competitors.

• Implement Recognition Programs: Create award systems for top performers, such as "Salesperson of the Month" awards, recognition at company meetings, or shout-outs in newsletters.

• Provide Career Development Opportunities: Offer mentorship programs, training, and workshops that align with career progression. Sales reps are more likely to stay when they see that the company values their growth.

• Introduce Experiential Rewards: Incentivize top performers with unique rewards, such as travel vouchers or experiences like dinners or VIP tickets. These can foster excitement and encourage healthy competition among reps.

Step 4: Regular Review and Adjustment

The sales landscape is constantly evolving, and so should your compensation plans. Regularly reviewing and adjusting your benchmarks is essential to stay competitive and ensure that your pay structure reflects market changes, industry trends, and business performance. 

• Track Performance Against Compensation Plans: Regularly analyze sales performance to determine if compensation plans are driving the desired behaviors. Adjust commissions or bonuses if certain metrics are underperforming or overachieving.

• Adjust for Market Shifts: Compensation structures should adapt to market conditions, such as inflation, regional salary differences, or changes in the competitive landscape. Adjust OTE or commission structures to reflect these factors.

• Conduct Internal Audits: Regularly assess internal compensation data to ensure that there is fairness and equity across all sales roles and that pay structures align with company goals.

How to Gather and Validate Benchmark Data

To create a competitive and fair sales compensation plan, you need accurate, reliable data. That means combining external insights with internal performance data to make informed, effective decisions. Here is how you can gather and validate the right sales compensation benchmarks.

Leverage Industry Reports

Start with established research firms and sales performance studies. Reports from organizations like Gartner, Forrester offer detailed insights into base salaries, variable pay, quota-to-earnings ratios, and more.

These sources aggregate data from hundreds of companies, often segmented by company size, growth stage, and sales role. Relying on these external benchmarks gives you a strong starting point and ensures your compensation structure is aligned with current industry standards.

Conduct Internal Data Analysis

Your company data is just as important as external benchmarks. Look at the performance of your sales team over the past 12 to 18 months. What compensation plans led to consistent quota attainment? Where did you see turnover or disengagement?

Key metrics to evaluate include:

• Quota attainment rates across roles
• Ramp-up time for new hires
• Retention rates of high performers
• Correlation between compensation and revenue generated

This internal analysis helps you validate whether your current structure is working or needs adjustment. It also gives you a clear picture of what motivates your specific team, not just the industry at large.

Engage Third-Party Compensation Consultants

If you are designing a new compensation model or scaling rapidly, engaging a third-party expert can save time and reduce risk. Compensation consultants bring external benchmarks, cross-industry knowledge, and real-world experience in building pay structures that align with business goals.

They can also help you avoid common pitfalls such as overly complex commission plans, misaligned quotas, or unfair incentive models.

Future Trends in SaaS Sales Compensation

As buying cycles evolve, customer expectations shift, and new technologies emerge, the way companies design and manage their compensation plans is also transforming. Here are the key trends shaping the future of SaaS sales compensation in 2025 and beyond.

Emphasis on Customer Lifetime Value (CLV)

Companies are shifting away from rewarding one-time deals and moving toward long-term customer success. Compensation plans are increasingly tied to metrics like renewals, upsells, and customer retention.

This approach encourages sales teams to prioritize sustainable growth. It also aligns their efforts with customer success teams and strengthens the overall customer experience.

Integration of AI and Data Analytics

Artificial intelligence and data analytics are playing a growing role in how compensation is tracked, managed, and optimized. With real-time insights, companies can identify performance gaps faster and make smarter adjustments to incentives or commission structures.

According to McKinsey, 78% of organizations now use artificial intelligence in at least one business function. Sales compensation is quickly becoming one of those areas.

Performance-Based Pay with Dynamic Quotas

Static quotas are losing relevance, especially in fast-changing markets. Many SaaS companies are adopting dynamic quotas that adjust based on factors such as market conditions, territory size, or seasonal trends.

This helps create more achievable, personalized targets that reflect real-time conditions. It also keeps sales professionals motivated throughout the year, even as circumstances shift.

The Rise of Sales Compensation Platforms

More SaaS businesses are investing in tools that automate commission tracking, improve transparency, and reduce manual errors. Platforms like Everstage offer features such as real-time dashboards, automated workflows, and integrations with CRM tools.

This not only saves time for finance and operations teams but also builds trust with sales professionals by providing clear visibility into how their earnings are calculated.

Conclusion

SaaS sales compensation benchmarks are key to attracting top talent, boosting performance, and supporting long-term growth. Aligning your plans with industry standards ensures fairness, competitiveness, and strategic focus.

Now, reflect on your compensation plans. Are they aligned with industry benchmarks? Are you incentivizing both short-term wins and long-term customer relationships? Is your compensation structure adaptable to future trends in sales?

By implementing the strategies discussed, you’ll be well-equipped to optimize your sales compensation model, motivate your team, and drive company success.

Ready to optimize your sales compensation strategy for 2025? Explore how Everstage can help you automate your commission tracking and provide real-time insights into your sales team’s performance. Book a demo today!

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