Sales Compensation Statistics: Key Data, Trends & Insights in 2025

Building a high-performing sales team takes time, money, and strategy. But retaining that team? That often comes down to one critical factor: compensation.

When a rep leaves, they don’t just create a hiring gap, they take relationships, momentum, and potential revenue with them. And more often than not, the reason behind their departure ties back to how they’re paid.

That’s why understanding sales compensation isn’t just useful; it’s essential. Data-backed insights into salaries, commissions, and performance trends can help you ensure your comp plan is competitive, motivating, and aligned with business outcomes.

In this article, we’ll break down the latest sales compensation statistics for 2025. From base salaries and OTE benchmarks to emerging pay trends and geographic variations, this guide will help you build smarter, more sustainable compensation structures for your sales team.

What are sales compensation statistics?

Sales compensation statistics reveal how companies pay sales teams across roles, industries, and regions. These statistics track base salary, OTE (on-target earnings), commission rates, and quota attainment. 

Sales leaders use this data to benchmark compensation plans, align incentives with performance, and attract top talent. In 2025, trends show a shift toward performance-based pay, real-time analytics, and role-specific benchmarks. 

Understanding these statistics helps optimize compensation models and improve revenue outcomes.

Why do sales compensation statistics matter?

Sales compensation isn’t just about cutting paychecks. It’s a strategic lever that directly influences motivation, performance, and retention. But without reliable benchmarks, companies often operate on guesswork, and that can be costly.

Here’s why these statistics matter:

• They reveal gaps in your pay structure. If your top reps are consistently leaving, it could signal that you're underpaying compared to market standards.
• They prevent overcompensation. Overspending on salaries without seeing results drains the budget and doesn’t guarantee performance.
• They set realistic expectations. When you know what similar companies pay, it’s easier to establish fair OTEs, commissions, and bonus plans.
• They help justify compensation decisions. Especially when negotiating with stakeholders or new hires.

In short, sales compensation research keeps your pay strategy grounded in market realities, not hunches.

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How these insights help sales teams and business leaders.

For revenue leaders, comp data does more than just inform pay levels, it shapes how teams are built and scaled. Here’s how:

• Build trust with transparency. Reps are more likely to stay engaged when they understand how their earnings are structured and how they compare to peers.
• Improve quota planning. If only half your reps hit quota, compensation stats can help recalibrate targets or incentive structures.
• Guided hiring and budgeting. HR and finance teams rely on these insights to align pay with company goals and avoid over- or under-hiring.
• Reduce turnover. Businesses that match compensation to performance trends see higher rep satisfaction and lower attrition rates.

When used well, sales compensation statistics turn pay plans from a liability into a competitive advantage.

Key Sales Compensation Statistics to Focus On

1. Average Base Salaries by Role

Base salary benchmarks vary depending on the sales role, experience level, and industry vertical. Here's how the 2025 figures stack up:

• General Sales Representatives: The median base salary in the U.S. is $63,230, with the top 25% earning $93,280 and the bottom 25% earning $47,220 (Salesforce).
• SDRs/BDRs: Entry-level reps like Sales Development and Business Development Reps typically earn between $50,000–$60,000 base pay in SaaS, with SDRs averaging $56,000 (Bridge Group).
• Account Executives: Mid-market AEs report average base salaries of $79,000, with enterprise AEs crossing the $100,000 mark, depending on company stage and sales motion.
• Sales Managers: On average, U.S. sales managers earn $150,530 annually (Salesforce).

Early-stage startups tend to offer slightly lower base pay in favor of equity. Mature enterprises lean into cash-heavy comp models with structured salary bands (ICONIQ Growth).

Company-Specific Compensation Changes:

• Walmart is increasing the compensation for market managers, raising their salary range from $130,000-$260,000 to $160,000-$260,000, affecting about 440 managers across the US.​
  
  
• Morgan Stanley is set to increase compensation for advisers who refer clients to other segments of the company.​

2. Average On-Target Earnings (OTE)

OTE reflects a rep's full earning potential, base plus variable pay. Recent benchmarks show:

• SDRs: OTE is approximately $85,000, with the base comprising 65-75% of the total comp (Salesforce).
• Account Executives: OTE averages $154,000, usually structured with a 50/50 base-to-variable split.
• Enterprise Sales Reps: In some SaaS organizations, high-performing reps exceed 120–130% of OTE, leading companies to adjust compensation caps to accommodate larger payouts (ICONIQ Growth).
• OTEs for SDRs range from $70K to $110K depending on market segment, composed of 30-40% variable compensation. (ICONIQ Growth)

3. Commission and Bonus Structures

Commission plans have become more nuanced to drive outcomes while staying understandable for reps:

• Flat-rate models still dominate: a set percentage of revenue earned per deal.
• Tiered models reward overperformance. Accelerators kick in after quota, with top performers earning 1.5x–2x the standard rate post-120% attainment (Forrester).
• Bonuses are often tied to quarterly milestones or deal complexity.

Some companies also use draw systems or SPIFFs (short-term performance incentives), especially in transactional or retail sales.

4. Sales Compensation by Industry

The following data, sourced from the US Bureau of Labor Statistics' Occupational Employment Statistics (May 2024), highlights median annual wages across industries where commission-based compensation is common. These figures represent base compensation before commissions, which can significantly increase total earnings in many of these sectors.

Retail and Consumer Sales

Financial Services and Insurance

Real Estate and Property

Technology and Software

Healthcare and Pharmaceuticals

B2B and Wholesale

In the SaaS sector, compensation structures can vary significantly. A study revealed that the average compensation for sales roles was $126,000, comprising a $62,000 base salary and a $64,000 commission for on-target sales. Notably, the proportion of salespeople earning over $120,000 increased from 18% to 51% over five years. ​

For Account Executives (AEs) in SaaS companies, the 2024 median annual on-target earnings (OTE) reached $190,000, with a 53:47 base-to-variable pay split. This marks an increase from $167,000 in 2022.

These figures underscore the importance of regularly benchmarking compensation against industry standards to maintain competitiveness and effectively motivate sales teams.

5. Geographic Trends in Sales Compensation

Geography still plays a large role in determining pay, though the gap is closing due to remote hiring:

• U.S. reps earn 22% more on average than their European counterparts (Ebsta).
• San Francisco, New York, and Seattle remain the highest-paying metros, with salaries often 25–30% higher than in the Midwest.
• Global convergence: As companies adopt remote-first models, compensation for the same role is becoming more uniform across regions (ICONIQ Growth).
• On average, sales reps in “tier 1” geographies have a 5% to 20% premium on cash compensation. SDRs in “tier 1” geographies have the highest pay premium, followed (20%) by account executives (15%), while account managers had relatively consistent OTE across geos

Sales Productivity & Performance Statistics That Impact Compensation

Beyond salary and commission structures, what truly drives effective compensation planning is how salespeople perform and why. The link between productivity metrics and compensation will be stronger than ever in 2025. 

From quota attainment to rep turnover, each performance indicator tells a story about how well your compensation model is supporting business goals.

Companies with challenging performance goals often offer higher compensation to achieve desired results, positioning pay targets at or above the 60th percentile.

Let’s break down the numbers that matter and how they’re shaping comp strategy in high-performing sales teams today.

1. Quota Attainment Rates

Quota attainment measures the percentage of sales representatives meeting or exceeding their sales targets within a specified period. Understanding these rates is essential for evaluating sales team performance and adjusting compensation structures accordingly.​

The RepVue Cloud Sales Index Q4 2024 report provides some valuable insights into quota attainment and sales performance:

• Overall Quota Attainment: As of Q4 2024, the average quota attainment was 43.14%, marking a slight improvement from Q2 2024's low of 42.00%.
• Performance by Vertical: 

• Data & AI: Quota attainment in this vertical was at 47%, outperforming the average. 
• Sales Tools: This sub-industry saw the highest growth, improving by 7.82% year-over-year with a Q4 2024 attainment of 46.22%. 
• Other Vertical Performance: Marketing Tools (46.44%) and HR Tools (42.19%) also showed improvement, while Finance & ERP and Productivity Tools saw slight decreases.

• SaaS Industry: Fully ramped SaaS sales representatives typically achieve 50-60% of their quotas.

Sales Roles: In November 2023, median base salaries and quota attainment percentages varied across sales positions: 

• Account Manager: $95,000 base salary; 50.3% quota attainment.​
  
  
• Enterprise Account Executive (AE): $130,000 base salary; 38.2% quota attainment.​
  
  
• Mid-Market AE: $85,000 base salary; 40.1% quota attainment.​
  
  
• Sales Development Representative (SDR): $55,000 base salary; 53.2% quota attainment. ​

In 2024, sales quotas rose by 37% compared to 2023, potentially contributing to lower attainment rates.

Only 28% of sales professionals believe their teams will hit 100% of their quota for the year, according to Salesforce’s State of Sales Report. That number has been steadily declining for three years. 

And 58% of companies over-assign quotas (typically by 20-30%) to ensure cumulative sales attainment is aligned with the company-wide revenue plan. 29% of companies offer quota flexibility to sales reps via quota relief

Bridge Group’s research suggests that aggressive quota-setting and inconsistent lead quality are major culprits. High-performing orgs now use attainment-based modeling to adjust quotas quarterly.

These figures highlight the challenges in meeting sales targets and underscore the need for realistic quota setting and supportive compensation plans.

2. Average Deal Sizes & Their Impact on Pay

​Understanding average deal sizes is crucial for shaping effective sales compensation plans. In the SaaS industry, for instance, the median Annual Contract Value (ACV) for private companies is approximately $22,357. This figure can vary significantly based on the company's size and target market.

Sales cycle length also correlates with deal size. Larger deals often involve longer sales cycles, which can impact the timing and structure of commission payouts. Implementing compensation models that account for these factors—such as offering milestone-based incentives during extended sales processes—can help maintain sales team motivation.

Higher deal sizes also correlate with longer sales cycles, necessitating higher base salaries to keep reps motivated.

3. Sales Cycle Length & Its Role in Compensation

Sales cycle durations vary across industries and have been lengthening:​

• Extended Sales Cycles: 58% of B2B SaaS sales professionals reported longer sales cycles in 2024. This comes on the heels of a 24% increase in sales cycles in 2023 for the typical startup, as reported by Tomasz Tunguz.
  
  
• Industry Variations: In 2024, companies targeting the mid-market with average annual contract values between $50,000 and $100,000 experienced sales cycles averaging nine months. 

Longer sales cycles may necessitate compensation models that provide consistent incentives throughout the sales process.

4. Rep Turnover & Retention Rates in Sales

Rep turnover remains a challenge across industries, and compensation is often at the center of the issue. Studies show that:

Average Turnover Rates:

The average annual turnover rate for sales positions is approximately 35%, nearly three times the average turnover rate of 13% across all industries. ​

Replacing a sales representative is costly, with expenses averaging around $115,000 when accounting for recruitment, training, and lost sales opportunities during the transition period. 

Companies that have introduced clear, achievable OTEs and built trust through pay transparency have improved rep retention by 12–15%, according to PayScale’s 2025 Compensation Best Practices Report.

These numbers highlight the importance of proactive compensation design, not just to attract top performers but to retain them.

Sales Compensation Trends for 2025

1. Increase in Pay-for-Performance Models

The shift toward performance-based pay is accelerating in 2025. As organizations aim to align compensation more closely with revenue impact, flat bonuses are being phased out in favor of commission accelerators. ICONIQ Growth reports that over 60% of SaaS companies now prioritize outcomes like renewals, upsells, and multithreaded deals as key compensation drivers.

A 2024 survey by the Alexander Group revealed that 28% of companies are integrating incentive pay into new roles. This approach aims to enhance productivity and optimize payroll costs. 

This performance-first mindset ensures that compensation not only rewards closed deals but also long-term customer value. For sales leaders, this creates a more measurable and scalable way to incentivize behaviors that impact business outcomes.

2. Rise of Non-Monetary Incentives

While financial compensation still matters, non-monetary perks are gaining traction as critical components of sales compensation. According to Salesforce, 42% of reps now prioritize career development over base pay (Salesforce).

Today’s top performers expect more than commission: they want equity, flexible work policies, clear growth paths, and access to skill-building resources. As a result, forward-thinking companies are:

• Offering stock options and RSUs for long-term retention
• Introducing milestone-based promotion cycles
• Investing in personalized learning and development programs

These benefits not only strengthen retention but also position your team as a long-term growth partner, not just a short-term closer.

3. Automating Sales Compensation with ICM

Manual compensation processes are being replaced by Incentive Compensation Management (ICM) platforms that automate commission calculations, forecast payout scenarios, and deliver real-time insights to reps and leadership.

​The global incentive compensation management software market was valued at approximately USD 2.22 billion in 2024 and is projected to reach USD 8.97 billion by 2033, growing at a compound annual growth rate (CAGR) of 16.76% during the forecast period. This trend reflects a broader movement toward automating sales compensation processes.

Tools like Everstage lead the charge in modern ICM adoption. Everstage, for instance, not only automates complex commission structures but also provides dashboards that let sales reps see potential earnings as they close deals, driving motivation and trust in the comp process.

By automating compensation, businesses reduce friction, build rep confidence, and gain strategic insight into what’s driving performance.

How to Use Sales Compensation Statistics to Improve Pay Structures

Sales compensation is no longer just a line item in your budget, it’s a strategic tool. Used correctly, sales compensation trends can help you create pay structures that boost performance, reduce attrition, and ensure you're staying competitive in your market.

1. Benchmark Your Pay Against Industry Standards

Start by evaluating how your current base salaries, OTEs (on-target earnings), and commission rates stack up against industry benchmarks. 

For instance, The Quota’s 2025 Sales Salary Guide shows that the median base salary for mid-market AEs is $85,000, while enterprise AEs are earning a median OTE of $255,000. If your numbers fall too far below these figures, you're likely losing top talent to better-paying employers.

Use compensation data from ICONIQ Growth, PayScale, Salesforce, and Bridge Group to identify where your comp plans may need adjustments. Staying within market range isn’t just about attracting talent, it helps retain high performers by signaling that their work is valued and fairly compensated.

2. Use Data to Recalibrate Quotas and Incentive Plans

Quota attainment rates should directly influence how you set targets and build incentive models. If your team consistently underperforms, say, less than 50% of reps hit quota, it could point to unrealistic expectations or misaligned incentives.

Layer in data on average deal size and sales cycle length. For instance, in industries where sales cycles stretch 6–12 months, commission-heavy models can demotivate reps waiting too long to be rewarded. Instead, implement hybrid structures with base-heavy comp and milestone-based incentives to keep motivation high across longer sales processes.

3. Align Compensation with Market Dynamics and Role Evolution

As selling becomes more complex, think solution selling, multithreaded buying groups, and post-sale engagement- your compensation plan should reflect this evolution. Roles like customer success managers and implementation consultants are increasingly tied to revenue outcomes, and their compensation should follow suit.

Geographic compensation is also evolving. The gap between salaries in San Francisco and remote locations is shrinking as remote hiring becomes the norm. Using benchmarking data, you can build equitable pay bands across regions without sacrificing competitiveness.

Ultimately, the smartest sales teams treat compensation planning as a continuous process, not a once-a-year review. When grounded in current data and adapted for market realities, compensation becomes one of your strongest levers for growth.

Conclusion

Sales compensation is one of the most powerful tools for driving performance and retention when it's backed by real data. From shifting OTE benchmarks to changing quota attainment rates, the landscape is evolving quickly. That means your comp strategy needs to evolve with it.

If your reps aren’t hitting quota or if your pay lags behind the market, the data is trying to tell you something. Using up-to-date sales compensation statistics helps you benchmark your structure, identify gaps, and build smarter plans.

The best plans today combine fair base pay, performance-based incentives, and flexible structures that reflect the realities of modern sales roles. When it comes to managing it all efficiently, tools like Everstage make a real difference.

Everstage helps teams automate compensation, eliminate spreadsheets, and give reps a clear view of their earnings in real time, so you can focus on driving results, not chasing numbers. If you’re ready to build a smarter, data-backed compensation strategy, book a demo with Everstage.

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