Negotiating a sales salary can feel intimidating, even for experienced sales pros. But making sure you’re paid what you’re worth is key to feeling valued in your role. Whether you’re talking about a starting salary or pushing for a raise, there are some tried-and-true sales salary negotiation strategies that can help you secure the best compensation package available.

The first step is doing your homework.  Find out what sales reps in similar roles are earning, both in your industry, at the company you’re negotiating with, and that company’s competitors. Knowing these numbers will give you the confidence to ask for what you deserve. Remember, it’s okay to advocate for yourself — the more prepared you are, the better your chances of walking away with a salary that reflects your true value.

Understanding the Basics of Sales Salaries and Commission Negotiation Tactics

Here are some basics you need to understand before entering into salary negotiations for your compensation:

Know Your Commission Structure 

Before you start negotiating, make sure you have a deep understanding of how your total compensation is calculated. If you’re negotiating at a current company, this should be straightforward, but if you’re negotiating salary for a role at a new company, you may have to do some digging. 

Are quotas and on-target earnings (OTE) based on total sales, net revenue, margins? Are there tiers that reward higher performance? This knowledge gives you leverage to negotiate a structure that maximizes your potential earnings.

Commission structures can (and will) vary depending on the industry and company, so it’s important to understand the specifics of the compensation plan before negotiating.

Research Role and Industry Salary Standards for Sales

Before entering into salary negotiations, research industry standards for sales salaries in your field. This information can help you determine a reasonable salary range for your experience and skill set. Repvue is a great resource for finding salary information for sales orgs in different industries.

Consider Your Experience

Your past performance is your strongest bargaining chip. If you’ve consistently hit or exceeded your targets, you have proof of your value to the company. Use specific examples — like exceeding quota by 20% or landing a major account — to justify asking for a higher base salary or a more favorable commission structure. 

If you’re new to sales, be prepared to demonstrate your potential by highlighting relevant skills or early achievements, but also be flexible with your expectations.

Negotiate with Confidence

Be confident in your abilities and the value you bring to the company. Come prepared with specific examples of your past sales successes and how they have contributed to the company’s bottom line. Be clear about your expectations for both base salary and commission, and don’t be afraid to ask for what you’re worth. 

If the company values your contributions, they’ll be open to a fair negotiation. Make sure to focus on the total compensation package, including bonuses, benefits, and opportunities for growth.

Define Your Salary Goals

Once you have a good idea of industry standards and your own value, it’s time to define your salary goals. 

Start by defining both your minimum acceptable salary and your ideal target salary. The minimum is your baseline — the absolute lowest amount you’re willing to accept, based on industry standards and your experience. Your ideal salary should reflect the value you bring to the table, but also consider the company’s size, budget, and market conditions.

Check out the RepVue Sales Salary Calculator

It’s also critical to remember that what matters in a sales role is your take home pay, and that’s as much a function of your quota as it is your compensation plan. You’ll often be better off in a role with a lower OTE if you’re more likely to hit quota. Keep that in mind when you’re negotiating and when you’re choosing a role.

Another thing to keep in mind is that salary is just one part of the compensation package, so consider other factors such as benefits, bonuses, and equity options. Having a clear idea of your salary goals will help you negotiate with confidence and avoid settling for less than you deserve.

The Negotiation Process

Here are the three key steps to follow when negotiating your sales salary:

1. Initiate the Conversation

It may seem obvious, but first step in negotiating your sales salary is to initiate the conversation. Your sales manager or the hiring manager probably won’t initiate this conversation for you. 

If you’re interviewing for a new position, bring up compensation when you feel confident about the offer, usually toward the final stages of the process. If you’re negotiating a raise at your current job, the ideal time is during a performance review or after hitting a major milestone.

When initiating the conversation, be confident and clear about your goals. Focus on your enthusiasm for the role and the company before transitioning to your salary expectations. Keep the conversation factual — back up your salary ask with industry research and data that proves you’re worth it.

2. Present Your Case

Once you’ve initiated the conversation, it’s time to present your case. This involves outlining your qualifications, experience, and achievements that make you a valuable asset to the company. Use specific numbers and examples to showcase your past achievements — whether it’s consistently exceeding quotas, closing high-value deals, or expanding your client base.

Don’t just focus on your qualifications. Frame your case around how your performance directly impacts the company’s revenue and growth. When you show how your success contributes to the bottom line, you make it harder for them to say no.

3. Handle Objections

During the negotiation process, you may encounter objections from the employer. These objections may be related to budget constraints, company policies, or other factors. But you’re in sales and overcoming objections is one of your specialties!

Treat any objections the way you would treat customer objections. Listen carefully to their concerns and respond with data or examples that address those objections. Show how your salary expectations align with the value you’ll bring to the organization. And remember, a strong negotiation strategy includes understanding when to pivot and offer solutions that benefit both sides.

If you’ve done your research and know your worth, you should be able to show how meeting your salary expectations can motivate you to drive greater revenue for the company.

Top Sales Salary Negotiation Tips and Strategies

Leverage Competing Offers

One of the most effective salary negotiation strategies is to leverage other job offers. If you’ve received offers from other companies, use them to your advantage when negotiating with your current employer or a potential one. This tactic can be especially effective if the competing offers are for similar roles and include a higher salary or better compensation package.

To use this tactic, you’ll need to know the average salary range for your position in your industry and location.Once you have this information, you can approach your employer and let them know that you have received other job offers and would like to discuss your salary.

A word of warning: if you plan to leverage a competing offer, make sure it’s an offer you’re willing to accept. Otherwise, they may call your bluff and leave you without a good option.

Emphasize Your Achievements

Your past performance speaks louder than words when negotiating your salary. Be sure to highlight any accomplishments or successes you have had in your current role. This can include exceeding sales targets, winning new clients, or implementing new strategies that have resulted in increased revenue.

By emphasizing your achievements, you can show your value to the company and make a strong case for a higher salary. Be sure to come prepared with specific examples of your successes and be ready to discuss how they have contributed to the company’s bottom line.

Be Willing to Compromise

While you should always aim to get the highest salary possible, it is important to be realistic and understand that there may be limitations to what your employer can offer.

If the company can’t meet your base salary expectations, be ready to discuss other forms of compensation, like a higher commission rate, bonuses, or stock options. Ask about long-term growth opportunities, too. You might be able to negotiate future salary reviews tied to performance milestones.

Bundle your requests when necessary. For example, if they can’t increase the base salary, ask for additional vacation time or better work flexibility.

Remember, negotiating your total compensation is about finding a balance that works for both you and your current or potential sales org. Be confident in your worth and clear in your requests, but also be willing to compromise and find creative solutions.

Dealing with Rejection

Like all aspects of sales, you may face rejection when negotiating a sales salary. It’s important to remember that rejection is not personal, and it’s not a reflection of your abilities. Instead, it’s an opportunity to learn and grow. Here are some tips to help you handle rejection in the sales negotiation process.

Request Feedback

If your salary request is declined, don’t let the conversation end there. When your current or a potential employer rejects your salary negotiation, it’s important to understand why. 

Requesting feedback from the employer can help you learn from the experience and improve your negotiation skills in the future.

You could say something like, “I appreciate your time in considering my proposal. Could you share any insights on what factors contributed to the decision?” 

This kind of feedback is gold for salespeople:  it gives you clear insights into how decision-makers think. Use it to refine your approach the next time you’re in a negotiation.

Consider Different Positions

If the employer is unable to meet your salary expectations, consider different positions within the company — or finding a new sales job elsewhere.

It’s possible that there are other opportunities that better align with your skills, experience, and salary expectations. 

Accepting the Offer

Congratulations, you have successfully negotiated your sales salary and received an offer! But before you accept, there are a few things you should do to ensure that you are making the right decision.

Review the Contract

Make sure to review the contract thoroughly before accepting the offer. Look at the base salary, compensation structure, benefits, and any other important details. 

If there is anything you don’t understand — or anything missing that you expected to see — don’t be afraid to ask for clarification. You want to make sure you fully understand the terms of the contract before signing.

Clarify Expectations

It’s important to clarify expectations with your new employer. Make sure you understand what is expected of you in terms of sales targets, performance metrics, and other key performance indicators. 

You should also discuss how your performance will be evaluated and what support you will receive from the company to help you achieve your goals.

Negotiating Your Sales Salary Is Worth the Effort

Negotiating your sales salary isn’t just about securing a higher paycheck. It’s about ensuring that your compensation reflects the value you bring to the table. 

Sales is a high-impact role, and your efforts will directly contribute to the company’s bottom line. If you’re consistently driving results, your salary should grow in tandem with the revenue and success you’re helping to create.

Beyond the immediate financial gain, negotiating sets a precedent for how you value yourself as a professional. It demonstrates to employers that you understand your worth and are willing to advocate for it. It also helps shape your long-term career path, positioning you for future raises, promotions, and professional growth.

At the end of the day, it’s a business decision that ensures you’re rewarded for the results you deliver.