Medical sales and tech sales are two of the most popular types of sales careers. But which of these two industries is best for you depends on your strengths, interests, and career goals. 

Both industries offer opportunities for career growth and financial success. Below, we take a look at the similarities and differences to help you decide which industry offers the best sales career path for you.

Recent History

Evolution of Medical Sales

Medical sales is a complex industry that has evolved significantly over the past few decades. For years, medical sales representatives would rely almost exclusively on face-to-face interactions with healthcare professionals to sell their products. However, with the rise of technology and post-COVID, medical sales representatives have had to adapt to new ways of selling their products.

While many interactions are still face-to-face, medical sales representatives today are also more likely to use a variety of tools, including social media and email campaigns, to reach their target audience. They also use data analytics to better understand their customers and to tailor their sales pitches to meet their needs.

Growth of Tech Sales

The tech sales industry experienced explosive growth in the last two decades, driven by the increasing demand for technology products and services. Tech sales representatives sell a wide range of products, including software, hardware, and cloud-based solutions or SaaS (software as a service).

Recently, the introduction of artificial intelligence technologies and advanced data analytics has further transformed the tech sales landscape. These innovations have led to the development of more sophisticated and versatile products. As a result, salespeople now face the challenge of not only staying updated with rapidly evolving technologies but also differentiating their offerings in a crowded market. 

This heightened competition has necessitated a shift towards more consultative selling approaches, where sales representatives must possess deep technical knowledge and the ability to tailor solutions to meet specific customer needs. 

Key Players

Medical Sales: Major Companies and Newcomers

The medical sales industry is highly competitive, with several key players dominating the market. Some of the leading companies in this field include:

• Medtronic
• Johnson & Johnson
• Pfizer
• Stryker
• Becton Dickinson

These companies offer a wide range of medical devices and equipment, including surgical instruments, implantable devices, and diagnostic equipment. They also provide a range of services, such as training and education for healthcare professionals.

In addition to these established giants, many new entrants are making waves in the medical sales space. 

Some of these innovative newcomers include:

• Prenuvo
• RapidAI
• Sanguine Biosciences
• Zageno
• 10x Genomics

These companies and many more are at the forefront of innovation, bringing new and effective solutions to the medical field.

Tech Sales: Industry Titans and Disruptors

In the tech sales industry, there are also several major players who dominate the market. These companies offer a range of products and services, including software, hardware, and cloud-based solutions. 

Some of the major tech sales enterprises include:

• Amazon Web Services
• Google
• Microsoft
• Oracle
• Salesforce

In addition to these established giants, several new tech companies have emerged, bringing innovative solutions and shaking up the industry. Some of these fast-growing startups include:

• Datadog
• Deel
• Gong.io
• Snowflake
• UiPath

These new tech companies are driving innovation and providing fresh solutions to meet the evolving needs of businesses, contributing to the dynamic and competitive landscape of the tech sales industry.

Household Name or Hot Startup?

In tech sales and medical sales, selling for one of the large legacy companies often involves promoting well-established products with a proven track record. Sales representatives benefit from strong brand recognition, extensive resources, and comprehensive training programs. However, they may also face challenges in differentiating their products in a mature market with entrenched competition.

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Selling for a newer company can be a very different experience. These companies often introduce cutting-edge technologies and innovative solutions that may not yet have widespread recognition. These companies will not be well-known brands. Sales representatives must be adept at educating potential customers about the unique benefits and potential of these new products. While this can be more challenging, it also offers the opportunity to be at the forefront of industry innovation and to carve out new markets with groundbreaking solutions. 

Check out bootstrapped and VC-funded orgs on RepVue

Sales Process and Strategies

Medical Sales Landscape

The medical sales cycle involves building relationships with healthcare professionals and decision-makers, such as physicians, hospital administrators, and procurement departments. 

The medical sales cycle can be lengthy, with multiple decision-makers involved in the process. Sales representatives need to be knowledgeable about the product, the market, and the healthcare industry to build trust with their customers and navigate the complex sales process.

Small Medical Practices vs. Large Health Systems 

There are a broad spectrum of potential customer types in the medical space. Selling to smaller medical practices and large hospital/healthcare systems reflect opposite ends of that spectrum. And depending on who you’re selling to, you’ll need to employ different approaches and strategies. 

When selling to private medical practices, sales representatives often deal directly with physicians or office managers. The sales cycle may be shorter, as fewer decision-makers are involved, and the purchasing process is generally more straightforward. Sales representatives can focus on personalized service, building strong relationships, and addressing specific needs and pain points of the practice. Sales reps still commonly make sales calls in person to offices and clinics (although less so than pre-COVID), and the practice of buying lunch for the doctors, nurses and staff of an office is still fairly commonplace. This practice has been subject to significant restrictions and regulation since the Sunshine Act of 2010, which put in place restrictions on kickbacks and gifts for physicians. While these regulations primarily targeted the pharmaceutical industry, they apply to any product that is sold to physicians.

Selling to large hospitals or healthcare systems is complex and time-consuming. The sales cycle is longer due to the involvement of multiple stakeholders, including hospital administrators, procurement departments, and specialized committees. Sales representatives must navigate a more bureaucratic process, often requiring formal presentations, detailed proposals, and extensive product evaluations. The ability to demonstrate cost-effectiveness, compliance with regulatory standards, and integration with existing systems is crucial when dealing with large healthcare organizations. Despite the challenges, securing a contract with a large hospital system can lead to significant and long-term sales opportunities. Also, sales reps selling to health systems may benefit from organizational support from their company in the form of broad advertising campaigns as well as continuing education programs that are designed to educate healthcare providers.

Tech Sales Landscape

In tech sales, you could be targeting a far broader range of prospects since almost every business utilizes software. This means that you could be selling to nearly any type of organization — Fortune 500 CPG companies, automakers, consulting firms, banks, energy companies — all of these are examples of potential enterprise targets for a tech seller. 

Meanwhile, an SMB or mid-market tech seller might be selling to “mom and pop” restaurants, services businesses, or even other tech companies. All of these businesses use software products for running marketing campaigns, doing visual design, managing inventory, sending emails, or managing customer communications.

Client Interaction and Relationship Management

Building strong relationships with your customers is crucial in any industry. In both medical sales and tech sales, you need to establish trust and maintain positive relationships. However, the way you achieve this can be different.

Building Trust in Medical Sales

In medical sales, establishing trust is especially crucial since the products you sell impact people’s health. To do this, you must have a deep understanding of your solutions and the problems they address. Great salespeople are often more knowledgeable about their specific solution, and the problem that it solves, than their medical professional prospects. They can demonstrate expertise, and the ability to speak confidently and authoritatively to highly educated buyers.

It’s essential to understand your customers’ needs and effectively communicate how your products can save time and improve the quality of care. Highlighting these primary benefits will resonate with healthcare professionals focused on delivering the best patient outcomes.

Building personal connections further strengthens trust. Take the time to know your prospects, listen to their concerns, and offer tailored solutions. Demonstrating genuine care and commitment to their success, and positive outcomes for the patients who they care for, reinforces your role as a trusted advisor dedicated to enhancing their practice.

Navigating Tech Sales Negotiations

In tech sales, building trust with your customers is crucial, as well, but demonstrating a clear return on investment (ROI) is paramount. Salespeople need to thoroughly understand their prospects’ needs and articulate how their products can provide significant value. It’s essential to confidently present your solutions, emphasizing their unique benefits and how they surpass competitors’ offerings.

To close deals, salespeople must effectively communicate the ROI of their products. This involves showcasing how your solutions will save money, increase efficiency, or drive revenue growth. Address any concerns by providing data and case studies that demonstrate the financial benefits and long-term value of your products. Good salespeople will be able to identify an immediate pain that their prospect is feeling, and explain how their product will alleviate it.

Often tech sales makes use of free trials. This allows prospects to experience the value of the product rather than just hearing about it.

By focusing on ROI, you can build trust and confidence with your customers, making them more likely to see your products as the best choice for their needs. This approach not only helps in negotiating effectively but also in securing long-term relationships with customers who recognize the tangible benefits of your offerings.

Regulatory Environment and Compliance

When comparing medical sales and tech sales, it’s important to consider the regulatory environment and compliance requirements for each industry. Both industries are subject to regulations and legal considerations that can impact sales strategies and tactics.

Medical Sales Regulations

Medical sales professionals must comply with a range of regulations that govern the sale and distribution of medical devices, pharmaceuticals, and other healthcare products. In the United States, the Food and Drug Administration (FDA) is the primary regulatory body responsible for ensuring the safety and efficacy of medical products. Medical sales professionals must be familiar with FDA regulations and guidelines, including those related to product labeling, advertising, and promotion.

Other regulations that medical sales professionals must be aware of include the Health Insurance Portability and Accountability Act (HIPAA), which governs the use and disclosure of patients’ protected health information, and the Medical Devices Directive (MDD), which outlines the requirements for medical device manufacturers and distributors in the European Union.

Due to the prevalence of regulation, sales cycles can be significantly longer in medical sales.

Tech Sales Legal and Compliance Considerations

The most common legal consideration for tech sales professionals is data privacy. Tech sales professionals must be familiar with data privacy laws, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. Software buyers will frequently ask about compliance certifications such as SOC 2 and ISO 27001.

Compensation in Medical Sales and Tech Sales

Both medical sales and tech sales can be lucrative careers. However, there are differences in base salaries and on-target earnings (OTE), as well as quota attainment rates for sales teams.

Salaries in Medical Sales

As of July 2024, median base salaries and OTE are typically lower than in tech sales, but quota attainment rates are significantly higher. 

Medical Sales Reps current report earning a median base salary of $60K and on-target earnings of $160K, with 55.8% quota attainment rates. Top performers report earning $409K.

Find real-time updates for Medical Sales salaries here.

Earning Potential in Tech Sales

Tech sellers report higher median base salaries and OTE, but much lower quota attainment rates. 

Tech Sales Reps current report earning a median base salary of $95K and on-target earnings of $180K, with 39.3% quota attainment rates. Top performers report earning $453K.

Find real-time updates for Tech Sales salaries here.

Recent Volatility in Each Industry

Medical Sales Volatility

The medical sales industry has faced specific changes and challenges, particularly due to the COVID-19 pandemic.

1. Pandemic-Induced Shifts: The COVID-19 pandemic brought about unprecedented changes in the medical sales landscape. The surge in demand for personal protective equipment (PPE), ventilators, and other critical supplies strained supply chains and shifted the focus of many sales teams.
2. Disrupted Supply Chains: Global supply chain disruptions caused delays in the production and delivery of medical devices and supplies. This led to shortages and impacted the ability of sales professionals to meet client needs promptly.
3. Telehealth Expansion: With the rise of telehealth services during the pandemic, there was an increased demand for digital health solutions. Medical sales professionals had to quickly adapt to selling software and telehealth platforms, often requiring new technical skills and knowledge.
4. Changing Hospital Priorities: Hospitals and healthcare providers reallocated budgets to focus on pandemic-related needs. This resulted in delays or cancellations of purchases for non-essential medical devices and equipment, affecting sales forecasts and revenue.
5. Remote Selling Challenges: The pandemic forced many sales interactions to go virtual. Medical sales representatives had to develop new strategies for building relationships and trust without face-to-face meetings, relying heavily on digital communication tools.

Tech Sales Volatility

The tech sales industry hasn’t been immune to difficult macro economic factors over the last few years.

1. Impact of ZIRP: The Zero Interest Rate Policy (ZIRP) led to increased investment in tech companies during the early 2020s. However, as interest rates began to rise in 2023, the influx of cheap capital slowed, leading to reduced funding and tighter budgets for many tech firms. Sales teams faced pressure to close deals quickly and meet higher revenue targets amidst a more cautious spending environment.
2. Widespread Layoffs: The tech industry saw significant layoffs in 2023 and 2024 as companies restructured to cope with changing economic conditions. Sales teams were directly affected, with many sales professionals losing their jobs or facing increased workloads as companies downsized.
3. Shift in Client Spending: With the economic uncertainty, many businesses reduced their IT budgets, prioritizing essential technology investments over new or experimental projects. This shift forced tech sales professionals to adjust their strategies, focusing on demonstrating immediate value and cost savings.
4. Increased Competition: As companies tightened their budgets, competition among tech sales professionals intensified. Sales teams had to differentiate their products more effectively, emphasizing unique features and strong ROI to secure deals.
5. Adapting to Remote Work: The shift to remote and hybrid work models continued to impact tech sales. Sales representatives had to leverage virtual selling techniques, manage remote client relationships, and use digital tools to maintain productivity and close deals.

Both medical and tech sales professionals have had to navigate significant challenges and changes in their respective industries. Understanding these specific factors can help salespeople adapt their strategies and succeed in a rapidly evolving market.