In today’s competitive job market, many professionals are seeking career paths that offer not only personal satisfaction but also lucrative financial rewards. One area consistently drawing attention is tech sales. The prospects of a huge paycheck have made tech sales jobs coveted positions, but do tech sales pay well? Before making a career change and signing up for tech sales training, this blog will explore various aspects of tech sales compensation, from entry-level roles to senior positions, aiming to help you understand the true earning potential in tech sales.
The short answer is yes, tech sales jobs generally pays well compared to other industries. Tech sales professionals are responsible for selling complex technology solutions, software, and services, which often come with high price tags. Their compensation is typically a mix of base salary and commissions, which means their earnings grow as they perform well and close more deals.
For those entering the industry, the question often arises: what is the typical entry level tech sales salary? According to tech sales salary reddit discussions and data from industry sources, entry-level base salaries can range from $35,000 to $45,000 per year, depending on location, company size, and the specific tech product being sold. Add commissions on top of this, and the total compensation for entry-level tech sales representatives can easily exceed $65,000 annually.
While this is a strong start, tech sales is an industry where experience and success in selling can dramatically increase earning potential. The performance-based nature of commissions allows skilled salespeople to earn significantly higher incomes as they progress in their careers. It’s not uncommon for experienced, full-cycle sales professionals to make $150,000 as their base salary. Add commission on top of that, and it is safe to say tech sales pays well.
One of the most attractive aspects of tech sales is the potential for high earnings. As tech sales professionals move from entry-level positions into more advanced roles, their compensation can skyrocket. For example, senior account executives and sales directors often earn six-figure base salaries. But what really drives earnings in these roles is the tech sales salary with commission structure.
Commissions in tech sales can vary, but they typically account for a significant portion of total compensation. Account Executives (AEs) are often paid on a 50/50 ratio of base salary to commission, meaning half of their earnings come from a guaranteed base salary, while the other half is tied to their sales performance. This structure incentivizes high performance, as AEs must hit or exceed their quotas to earn the full potential of their compensation.
For example, an Account Executive with a base salary of $115,000 under a 50/50 compensation plan would have the opportunity to earn an additional $115,000 in commissions if they meet their annual sales targets. This means their total on-target earnings (OTE) could reach $230,000. If they exceed their targets, they can potentially earn even more, which makes tech sales highly rewarding for those who consistently perform at a high level.
The highest salaries in tech sales are found in senior roles selling to enterprise customers, where deal values often reach into the millions. Closing these large, complex deals can lead to substantial commissions, with top performers earning well into six figures and, in some cases, over $500,000 annually.
Over the past 5 to 10 years demand for tech sales professionals has been on a steady rise, which is reflected in competitive tech sales salary offerings. While there has been a steady increase, the current landscape has shifted. As interest rates have risen and investment capital has dried up, tech companies are pulling back on aggressive hiring. The market has slowed, and companies are now more cautious about their growth strategies.
Despite the slowdown the need for tech sales has not disappeared, it's simply evolved. Companies are under pressure to find more efficient ways to grow, and that has led to greater responsibility being placed on salespeople. Account Executives must not only close deals but also source their own leads. This shift means high-performing salespeople are more valuable than ever. If you can demonstrate consistent performance, the demand for top tier talent remains strong, and tech sales salary opportunities for high performers are still highly competitive.
While tech sales can be a lucrative career, breaking into the field has become more challenging. As market conditions tighten, companies are more selective with their hiring, especially for well-paying roles. Additionally, the rise of AI is reducing the need for entry level sales roles, as automation takes over many of the initial outreach tasks historically handled by SDRs.
However, while AI is efficient, companies are starting to realize it often leads to impersonal and ineffective outreach. This has created an opportunity for talented individuals who can demonstrate their ability to make meaningful connections and book meetings. Skilled SDRs who can show they’re an asset are still in demand, even in this competitive environment.
To stand out from the noise and break into tech, it’s essential to go above and beyond. One way to differentiate yourself is by creating a video introduction to send directly to the sales manager, showcasing your enthusiasm and skills. Come up with some ideas for an email sequence. Small steps like this can make a big impact, setting you apart from the competition and positioning you as a valuable addition to any sales team.
So, does tech sales pay well? Absolutely. Whether you’re looking at an entry-level tech sales salary or the earnings potential of a seasoned sales professional, tech sales offers a lucrative career path with significant opportunities for growth. What sets tech sales apart is the potential for commissions, making it one of the highest-paying career paths for top performers. For those who hustle, the rewards can far surpass base salary alone.
If you're interested in getting started on your tech sales journey, check out the N.E.S.T. program and take the first step on your tech sales journey.