SaaS Sales Salary and Commission

You’ve hit your targets, crushed your quotas, and maybe even topped the leaderboard. But as you stare at your paycheck, one question lingers — “Am I earning what I’m worth?” For example, mid-market SaaS Account Executives see base salaries in the $50,000 to $70,000 range, whereas Enterprise Account Executives often command significantly higher salaries—sometimes 50-100% more than their small to medium business counterparts.

Maybe you’re gearing up to ask for a raise, considering a promotion, or eyeing a new opportunity. Knowing where your salary stands in the SaaS sales world gives you the confidence to take your next step.

This blog will break down what SaaS sales reps, account executives, and managers are earning in 2025, the factors that shape those numbers, and how you can maximize your earnings through commissions and bonuses. You’ll also get expert tips on negotiating the salary you deserve. Ready to see if it’s time for a raise or a career upgrade? 

What Do SaaS Sales Reps Actually Earn? A Detailed Breakdown

You’re probably wondering, “Am I getting paid enough for the deals I’m closing?” The truth is, in SaaS sales, your paycheck is as much about your negotiation skills as your performance. Knowing what others in your role are making can enrich you with the right information when it’s time to ask for a raise or switch companies.

As of March 20, 2025, the SaaS sales salary in the United States is an average annual salary of $81,617. If you break it down, that's roughly $39.24 per hour, $1,569 per week, or $6,801 per month.

Salaries in this field can vary widely. While some entry-level positions may start at around $22,500 a year, the highest earners can make up to $154,500. Most SaaS sales salaries typically fall between $53,000 (25th percentile) and $96,500 (75th percentile), with top earners (90th percentile) bringing in about $136,500 annually.

This broad pay range — with a difference of up to $43,500 — suggests that factors like experience, location, and skill level play a significant role in earning potential. For those willing to grow their expertise and take on challenging sales roles, there’s plenty of room for career growth and increased pay.

• Salary of SDRs/BDRs

For Sales Development Representatives (SDRs) or Business Development Representatives (BDRs), base salaries generally range from $45,000 to $55,000. These entry-level roles focus on lead generation and setting up meetings for Account Executives (AEs).

• Salary of AEs

Account Executives (AEs), responsible for closing deals and managing client relationships, see a wide salary range.

• SMB AEs: Closing small deals of $300,000 to $500,000 per year, with on-target earnings (OTE) between $60,000 and $140,000.
• Mid-Market AEs: Typically close deals worth $600,000 to $700,000 annually, bringing in total compensation of around $150,000 to $200,000.
• Enterprise AEs: Handle larger, more complex deals, often closing $750,000 to $1 million per year, leading to OTEs in the range of $200,000 to $300,000 or higher.

Now, if you’re a top performer, the sky’s the limit. Top 5% AEs often close 2x to 3x more than the average rep. 

• Salary of Sales Managers and Directors

For those climbing the ranks, Sales Managers and Directors who lead teams and oversee strategies often earn base salaries between $120,000 and $150,000, with OTEs pushing up to $300,000 or more.

But it’s not just about the base salary. Commissions, bonuses, and equity are the secret sauce in SaaS sales earnings. Commission rates often range from 2% to 20% of the total contract value or annual recurring revenue (ARR). Some companies offer accelerators, meaning once you surpass quota, your commission rate increases—boosting your earnings even further.

So, are you earning what you’re worth? If not, maybe it’s time for that raise or a fresh opportunity.

Compensation Structures and Commission Plans in SaaS Sales

In SaaS sales, your earning potential is heavily influenced by the compensation structure set by your company. While the base salary offers financial stability, commissions, bonuses, and stock options can significantly boost total earnings. Let’s break down how these components typically work.

Base Salary vs. Commission

SaaS sales reps usually receive a combination of base salary and commission. The ratio often ranges from 50:50 to 60:40, where a substantial portion of your income is performance-driven. For example, if your On-Target Earnings (OTE) are $150,000 with a 50:50 split, your base salary would be $75,000, and the rest would come from commissions. Higher-performing reps have the potential to exceed OTE significantly through accelerators and bonuses.

Accelerators and Bonuses

Accelerators are tiered commission structures that reward sales reps who surpass their quotas. For example, an AE might earn a 10% commission on deals up to quota but see that rate jump to 15% or even 20% once the quota is exceeded. This encourages consistent performance and rewards top sellers.

Bonuses offer additional earnings for achieving specific milestones, like:

• Closing a certain number of deals within a quarter
• Securing multi-year contracts
• Achieving high customer satisfaction scores

Companies may also introduce SPIFFs (Special Performance Incentives for Field Force) as short-term rewards, such as a $1,000 bonus for selling a particular product or service.

Commission Rates in a Startup

Commission rates in SaaS typically range from 2% to 20% of the total contract value (TCV) or annual recurring revenue (ARR).

• Sales Development Representatives (SDRs): SDRs typically earn commission rates between 2% and 5% when they receive a percentage from deals that close from leads they generated. ​
• Account Executives (AEs): AEs generally have a commission rate of around 10%. 
• Enterprise Account Executives: While specific commission rates for Enterprise AEs aren't detailed in the provided sources, it's common in the industry for these roles to command higher commission percentages due to the complexity and value of the deals they manage.

Tiered commission plans can be applied, where a rep earns a base commission up to their quota and a higher rate beyond it.

Stock Options

Stock options are another significant incentive in SaaS sales compensation. Companies may grant employees the option to buy company shares at a predetermined price, known as the exercise price. Vesting schedules are commonly applied, typically over four years with a one-year cliff.

• Incentive Stock Options (ISOs): Offer tax advantages but come with eligibility criteria.
• Non-Qualified Stock Options (NSOs): Have simpler tax rules and are more common in non-executive roles.

Director-level roles and top performers might receive up to 1% of company equity, presenting a lucrative opportunity if the company experiences significant growth.

What You Can Expect in the Real World of SaaS Sales

Consider a Mid-Market AE with the following structure:

• Base Salary: $80,000
• Commission: 12% on TCV
• Quota: $700,000 per year
• Accelerator: 18% on deals exceeding quota

If the rep closes $900,000 in TCV, their earnings would be:

• $80,000 (Base Salary)
• $84,000 (12% of $700,000)
• $36,000 (18% of $200,000 exceeding quota) Total Compensation: $200,000

Also Read: Sales Managers' Commission Structure

What Factors Can Influence SaaS Sales Salaries?

SaaS (Software as a Service) sales roles offer lucrative opportunities in the U.S. With the increasing demand for cloud-based solutions, sales professionals are reaping competitive compensation packages. Let’s break down what impacts your salary and what you can expect in 2025.

1. Geographic Location

Salaries can vary widely depending on where you live. Tech hubs like San Francisco and New York tend to offer the highest pay due to a higher cost of living and demand for talent.

Account Executive (AE) and Sales Development Representative (SDR) Salaries:

According to an October 2023 article from The Quota, the average base salaries for AEs and SDRs in select U.S. cities are as follows:

• San Francisco, CA:
  
  • AE: $100,000​
  • SDR: $60,000​
• New York, NY:
  
  • AE: $95,000​
  • SDR: $55,000​
• Austin, TX:
  
  • AE: $85,000​
    SDR: $55,000​
• Atlanta, GA:
  
  • AE: $95,000​
  • SDR: $50,000
    

Senior Sales Manager Salaries:

For Senior Sales Manager positions, data from Indeed indicates the following average base salaries:

• Atlanta, GA: $112,714 per year, with an additional average commission of $20,000 per year. ​
• New York, NY: $112,828 per year, also with an average commission of $20,000 per year. ​

It's important to note that these figures represent base salaries and may not account for total compensation, which can include commissions, bonuses, and other incentives. Additionally, salaries can vary based on factors such as experience, company size, and specific job responsibilities.

2. Industry and Market Demand

Cybersecurity Software Sales:

• Average Base Salary: Approximately $104,073 per year.​
• Commission Percentage: Typically ranges from 8% to 12% of the annual recurring revenue (ARR) closed.​

Healthcare Software Sales:

• Average Base Salary: Around $81,986 per year.​
• Commission Percentage: Similar to other SaaS sectors, often between 8% and 12%.​

Fintech Software Sales:

• Average Base Salary: Approximately $82,018 per year.​
• Commission Percentage: Generally falls within the 8% to 12% range.​
  
  

Human Resources (HR) Software Sales:

• Average Base Salary: About $82,353 per year.​
• Commission Percentage: Typically between 8% and 12%.​

Education Software Sales:

• Average Base Salary: Around $66,901 per year.​
• Commission Percentage: Similar to other SaaS sectors, often between 8% and 12%.​

General SaaS Sales Compensation:

• Average Base Salary: The national average base salary for software sales professionals is above $51,000, with total compensation (including commissions and bonuses) averaging around $67,000 per year.​
• Commission Percentage: A standard commission rate in SaaS sales is often around 10%, though this can vary based on factors such as the type of software sold, company size, and subscription model.​

Please note that these figures are approximate and can vary based on factors such as experience, company size, and geographic location. Additionally, commission structures may differ depending on the specific sales role and organization. For the most accurate and up-to-date information, consulting industry reports or salary surveys specific to your region and sector are recommended.

3. Experience Level and Role Progression

Your years of experience directly impact your salary. Entry-level roles like Sales Development Representatives (SDRs) earn less than seasoned Account Executives (AEs) and Sales Managers.

Note: OTE includes base salary plus commissions and bonuses, assuming 100% quota attainment.

Also Read: Sales Leader Essentials: Definition, Skills, and Advancing Your Career

Negotiation Skills for Sales Reps

Negotiation is a crucial skill for sales reps — not just for closing deals but also for maximizing their own earnings. Whether you're negotiating your base salary, commission structure, or additional bonuses, having strong negotiation skills can significantly impact your total compensation. Here’s how you can navigate these conversations effectively:

1. Know Your Worth

Before entering any negotiation, research industry standards for your role. Understand the average base salary, commission rates, and bonus structures for SaaS sales reps at your experience level. Platforms like Glassdoor, LinkedIn Salary, and industry reports provide valuable insights. Use this data as a benchmark to justify your ask.

2. Showcase Your Value

Employers are more likely to negotiate if you present clear evidence of your impact. Highlight your past performance, emphasizing metrics like quota attainment, revenue generated, and key accounts closed. Be specific — numbers speak louder than words. For example, mentioning that you achieved 120% of your annual quota last year strengthens your case.

3. Understand the Compensation Structure

Familiarize yourself with how commission rates, accelerators, and bonuses work at your prospective company. Some organizations offer tiered commission plans that increase earnings as you exceed quotas. Others may provide bonuses for closing strategic deals or retaining clients. Knowing these details allows you to negotiate for favorable terms.

4. Negotiate Beyond Base Salary

While base pay is important, other elements can enhance your total compensation:

• Commission Rate: If you’re confident in exceeding quotas, negotiate a higher commission percentage.
• Accelerators: Push for generous accelerators that reward performance above quota.
• Bonuses: Negotiate signing bonuses, quarterly bonuses, or SPIFs (Sales Performance Incentive Funds).
• Equity or Stock Options: Especially in startups, equity can lead to significant long-term earnings.
• Flexible Targets: If quotas seem unreasonable, advocate for more realistic targets tied to market conditions.

5. Practice the Right Approach

Frame your negotiation as a collaborative discussion rather than a demand. Express enthusiasm for the role and emphasize your desire to contribute to the company’s success. Phrases like “I’m excited about the opportunity to drive growth here, and I’d like to explore how we can align on a competitive compensation structure” foster a positive dialogue.

6. Leverage Multiple Offers

If you have competing offers, you’re in a stronger negotiating position. Politely mention other opportunities without sounding confrontational. This can encourage companies to enhance their offer to secure your talent.

7. Know When to Walk Away

While negotiation is essential, it’s equally important to recognize when an offer doesn’t meet your expectations. If a company is unwilling to provide fair compensation despite your qualifications, it may be a sign to explore other options.

By refining your negotiation skills, you can confidently advocate for your worth and achieve a compensation package that reflects your contributions.

Also Read: Salary to Revenue Ratio for Salespeople

Wrapping Up

Activated Scale empowers sales professionals to take control of their earning potential. By providing access to a wide variety of sales roles, from part-time gigs to leadership positions, the platform opens doors for career growth and financial success. Being an SDR or a seasoned VP of Sales looking to maximize your earnings, Activated Scale offers the flexibility and opportunities to achieve your goals.

How Activated Scale Supports Sales Representatives

1. Access to Diverse Opportunities: Activated Scale links sales professionals with startups and growing companies seeking expertise in roles such as Sales Development Representatives (SDRs), Account Executives (AEs), and Vice Presidents of Sales. This variety allows sales reps to select positions that align with their skills and career goals. ​
   
   
2. Flexible Engagements: The platform offers fractional selling roles, enabling sales professionals to work with multiple companies simultaneously. This flexibility allows reps to maximize their income by balancing various part-time engagements. ​
   
   
3. Opportunities for Advancement: By working with startups at different growth stages, sales reps can gain valuable experience and demonstrate their ability to drive revenue. Success in these roles can lead to higher-paying positions or full-time offers with equity options, further increasing total compensation. ​
   
   
4. Enhanced Earning Potential: Activated Scale's model allows sales professionals to engage in multiple roles, potentially increasing their overall income. By collaborating with various startups, reps can leverage their expertise across different markets and products. ​

In summary, Activated Scale provides a platform for sales representatives to access a range of opportunities, offering flexibility and potential for increased earnings. By connecting with startups and scale-ups through Activated Scale, sales professionals can strategically manage their careers to achieve maximum salary potential.

Ready to explore your next sales opportunity? Activated Scale might just be the perfect launchpad. Boost Your Career Graph now with us and secure a job that would satisfy your finances and work-life balance!