Get paid what you’re worth: A guide to sales salary negotiation

By Ryan Walsh, CEO and Founder of RepVue

Negotiating a sales salary can feel intimidating, even for experienced 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, some tried-and-true sales salary negotiation strategies can help you secure the best compensation package available.

Basics of Sales Salaries and Commission Negotiation Tactics

Know Your Commission Structure

Before 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.

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.

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 (free) RepVue Sales Salary Calculator


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 the first step is to initiate the conversation. Your sales manager or the hiring manager probably won’t initiate this conversation. 

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.

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 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 you contribute to the bottom line, you make it harder for them to say no.


3. Handle Objections

During the negotiation process, you may encounter objections. These objections may be related to budget constraints, company policies, or other factors. 

Treat any objections the way you would treat customer objections. Listen carefully, 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.


Top Sales Salary Negotiation Tips and Strategies

Leverage Competing Offers

One of the most effective salary negotiation strategies is to leverage other job offers (see companies hiring heading into July). This tactic can be especially effective if the competing offers are for similar roles and include a higher salary or better compensation package.

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.


Be Willing to Compromise

While you should always aim to get the highest salary possible, it’s 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.

You might also like

Everything sales, straight to your inbox.

Sign up for The Quota, a fun, free weekly newsletter for salespeople and sales leaders -- from the people who brought you Sales Humor.

Thanks for subscribing! Just one more step!
Oops! Something went wrong while submitting the form.