As a young salesperson doing a sales job, you may have heard about the potential for high commissions that come with tech sales jobs. It is not a surprise, though, because these jobs offered by tech companies are among the highest-paying sales jobs today. But how much commission in tech sales can you make?
Understanding this is important if you’re considering a career in this field. This blog post will examine what commission is and how it works in the industry. So whether you’re aiming to be among the account executives or just doing a simple sales job at a local tech company, consider this your guide to one of the highest-paying sales jobs in the world today.
But before we dig deeper into that, here’s a quick video about tech sales:
Commission in Tech Sales Defined
A commission is a type of performance-based payment that salesmen at tech companies receive when they meet specific goals or quotas. There are a few different types of commission structures, but most are based on gross profit or total revenue earned by the company through selling products or services.
In other words, the commission you earn will depend on how much your company makes from your sales activities. The more diligent you are with your sales jobs, the more likely it is that you will make a lot of money. It is undoubtedly one of the highest-paying sales jobs for sales professionals today.
If you are seriously considering a career in tech sales, it is safe to assume that you will include your commission in your compensation plan. This will give you an overview of how much you will earn in large companies if you occupy one of those entry-level salesperson positions. Combine your potential commissions with your average salary, and you will have a grasp of how much money you will make in tech sales.
Can you make a lot more money in tech sales through commissions?
There are many benefits to working in tech sales, including potentially high commission rates and additional bonus opportunities for meeting specific goals. However, it is essential to remember that commissions will vary depending on your employer and job role.
Tech sales can be an excellent opportunity for those willing to invest the time and effort necessary to succeed in this highly competitive field. If you’re considering this, it pays to do research to understand precisely what kind of compensation structure you can expect from potential employers. Many tech sales positions are available on the market nowadays, and these sales jobs vary in terms of the commissions they will get.
Your commission will vary depending on several factors, including your employer and your specific job role. That said, many tech companies offer generous commission rates—sometimes up to 10–25% of total revenue—to reward their top performers. There is no doubt that sales managers, enterprise account executives, sales representatives doing software sales, advertising sales, and the like earn up to six figures. It is thus safe to say that sales professionals in the tech industry are among the highest-paid salespeople in the US today.
In the US, the average base salary of sales reps is pegged at $62,000 annually. This median compensation alone makes it a highly lucrative gig. According to the US Bureau of Labor Statistics, a total of 170,000 job openings are projected annually for sales reps, with the most exciting ones being offered by large companies.
Furthermore, some top tech companies offer bonuses or incentives for meeting certain milestones throughout the year, such as signing new clients or closing large deals. In addition to these financial incentives, there may also be opportunities to advance within the company more quickly than those who don’t achieve success in their roles.
If you’re working on a commission-only basis, say by selling cloud products, you’ll only be paid if you make sales; there’s no base salary or an hourly wage. This also means that your income potential is unlimited because there’s no cap on how much you can earn through commissions. Thus, you must pick well from the various sales jobs to gauge your potential.
Because technology is advancing so quickly, there is always a great need for tech sales. This means that companies and large corporations in the industry are continually looking for new technological applications to enhance their operations or give them an advantage over rivals. Because of this, there will always be a demand for talented salespeople who can explain to businesses how new technologies may help them and then persuade them to buy those solutions.
Understanding Your Sales Job in Tech Sales is Key to Earning Commissions
Before diving into a career in tech sales, you must understand what type of role you are taking on. Are you selling directly to customers (B2C) or to businesses (B2B)? Knowing this ahead of time will help give you an idea of what kind of products and services might be expected from your position so that you know what revenue potential exists.
That way, when it comes time to negotiate a commission rate with your account or enterprise account executives, you’ll know how much money could be made from each sale.
Once you understand the tech sales role you are taking on, it’s essential to get familiar with the common terminology used in the industry. You need to talk about tech solutions and products in an informed way so potential buyers will trust you and your pitch. Understanding market segmentation, pricing strategies, competitor analysis, company positioning, and industry trends will help you develop a successful sales strategy.
Commission Structure in Tech Companies
Most employers structure their commission model differently depending on the product’s size and complexity. Some companies may offer tiered commission structures where lower-priced items require less effort but yield decent payouts.
Other companies may feature straight commissions, where every sale delivers an equal amount regardless of price. It’s essential to investigate different types of commission structures before accepting a job offer to know precisely what kind of compensation package awaits you once hired. A sales career is truly rewarding!
Currently, one of the most promising sectors of tech sales is software sales. Software sales offer unique advantages that make them an excellent choice for those looking to break into the industry. Software sales are among the most profitable and satisfying careers available today due to their high earning potential, flexible working hours, and multiple prospects for advancement.
Customers frequently purchase software and services on a subscription basis, paying each month for continuous use. Software sales commissions are often calculated as a percentage of the account size; the more significant the sale, the higher the commission. Your commission may be as high as 20%, or $100, if you sell a software package like Google Cloud with a list price of $500 per month to a large enterprise customer. You might only make between 5 and 10% on smaller accounts (such as those paying $50 monthly, for example).
Premises considered, is tech sales a promising career?
Tech sales can be rewarding for those who enjoy sales and are interested in technology. Selling technology-related goods or services to companies or organizations is the norm. The possibility of high earnings, prospects for growth, and the chance to work with cutting-edge technologies are just a few advantages of a career in tech sales.
Tech sales professionals can frequently make big salaries. For effective salesmen, many employers give a basic salary plus commission, which can result in considerable earning potential. Bonuses, stock options, and other incentives are standard in IT sales positions.
Jobs like enterprise sales manager, account executive, and sales engineer are some of the highest-paying ones in the technology sector. A high earning potential can also be attributed to the fact that many tech businesses provide competitive salary packages that frequently include substantial benefits, retirement plans, and chances for career growth and progress.
The good thing is that you don’t need a college degree, a bachelor’s degree, or even a high school diploma to land a high-paying tech sales job.
Make sure to check out my previous blog, where I discussed the possibility of you making your millions in tech sales jobs. In the blog post, I detailed the strategies to increase your success rate in advertising, tech, and the like.
If you are not a techie and seriously considering getting a shot at doing sales jobs, you might also want to check my blog about being successful in this field.
Watch my video about it:
Tips to Earn More Commissions at Tech Companies
In tech sales, experience is crucial for earning high commissions, but it’s not the sole consideration when determining the commission size. It’s crucial to be able to close deals swiftly and effectively since the quicker you do it, the higher your commission will be!
Your prospects of success in the sector will also be boosted by keeping up with current technology trends and being able to spot possibilities before they materialize. Additionally crucial is developing relationships with customers through consistent communication; the greater your relationship with a customer, the more likely it is that they would do business with you again.
There are several ways how you can increase your chance of getting commissions. The more deals you have, the more opportunity you can earn upwards. Put in some diligence, and build rapport with potential customers and clients, and you’re likely to enjoy large commissions.
If you are a young salesman for a small company or even large enterprises, here are some tips you can follow to earn more commissions doing tech sales:
Understand your Product
Understanding your product features or service is critical to reaching your goals for commission in tech sales. It’s important to have a deep knowledge of the features and benefits of the product or service so that when customers ask questions, you can answer them confidently with detailed information. Taking the time to understand your product will also ensure that you can explain it effectively, encouraging customers to buy from you and increasing your commission potential.
For instance, if you are selling customer support software, a Google cloud, or a Google workspace subscription to prospective clients, you need to study its features in detail. This will enable you to speak confidently if you sell them to business professionals or government agencies.
Study your Market and Tech Companies
Having a good grasp of the market is essential for any young salesman. Knowing who your competition is, their strengths and weaknesses, and how their products compare with yours can be invaluable information when selling something.
It would be best if you also studied trends in the industry, such as new technologies or pricing changes, which could affect how customers view your product or service. This will help you stay one step ahead of competitors and ensure that customers are more likely to purchase from you than someone else. Tech salespeople are obsessed with studying market trends as they help usher in revenue growth for their home companies and businesses they have deals with.
Highest-paying sales jobs require you to Build Relationships
Relationship-building with customers is one of the most important things you can do as a salesman if you want to get high commissions. When customers feel like they have an established relationship with someone they trust, they are more likely to buy from them repeatedly—which means higher commissions for you! Building relationships are truly one of the building blocks to being within the radius of high-paying jobs, tech sales included.
Take time out of each day to reach out to current and existing clients via phone calls, emails, or even social media posts; this will help build trust between yourself and your customer base and ultimately lead to increased sales numbers for yourself. Building relationships is undoubtedly one of the top solutions to earn upwards in tech sales. Account executives share that this is a trade secret in furthering your sales career.
To be effective in tech sales, Understand Your Client’s Needs
The key to getting high commissions in tech sales is understanding your client’s needs. Before engaging with prospective clients, research their company and its industry. What products or services do they provide? What challenges are they facing?
This knowledge will help you create a tailored solution that meets their needs. Additionally, it will give you an edge over your competitors, who may be offering generic solutions.
Let’s say you are one of the sales reps of this large company. To give a good sales pitch, first, you need to identify problems in a particular company. Because you already understand your products, you can now develop a sales pitch that will effectively sell a software platform that helps businesses manage the things they are underperforming.
Final Thoughts on Tech Sales Commissions
Tech sales, as one of the world’s highest-paying sales jobs, can be a lucrative career path for those who are up for the challenge and have an aptitude for learning about new technologies and systems quickly. Although it takes dedication and hard work, understanding how much commission one makes in tech sales can motivate and financial rewards for those willing to put in the effort required to succeed in this field.
With a thorough understanding of roles within tech sales positions as well as knowledge about different types of commission structures available, anyone interested in pursuing a career in tech sales should have no problem finding success.
Are you inspired by this post? Make sure to share this with your friends who want to have a shot in sales career. This might also benefit other sales professionals like real estate agents and sales engineers to make that big switch, so don’t forget to share this blog to them. Thank you for reading and good luck on making your first million in tech sales job!
Also, if you’re looking for the best tech sales Bootcamp available, click here to check my blog about The Best Tech Sales Bootcamp.
Or you can watch the video here: