For people thinking about a job in sales or those already working in it, it's important to understand the changing pay rates. This blog post will look at the average salary trends for sales managers in 2025. We will consider factors like location, experience, and what industries need right now. This will help give a clear picture of this popular job.
Understanding Sales Manager Salaries in 2025
As we move into 2025, sales managers are very important for businesses in many areas. They drive sales, lead teams, and help meet sales targets. Because of this, companies want to pay well to keep and attract the best sales talent.
However, looking at just one average salary doesn't tell the full story. Many things affect how much a sales manager earns. Knowing these details is key for employers making good pay offers and for sales managers who want to earn more.
The Factors Influencing Sales Manager Salaries in the United States
To understand sales manager salaries, we should look at factors that affect total compensation. First, location is very important. Big cities like New York, San Francisco, and Boston usually pay higher salaries. This is because of more competition, higher living costs, and many large companies in these areas.
Next, experience matters a lot. As sales managers gain more experience, they learn to manage teams, create plans, and achieve goals. This experience increases their earning potential. Senior professionals can earn much more than those who are just starting out.
Lastly, we cannot forget about industry trends and the economy. Industries that are growing fast or lack skilled workers will often pay more to attract and keep top-performing sales managers.
How Industry Trends are Shaping Sales Manager Pay for 2025
Industry trends are important for shaping the average total compensation for sales managers. Some new trends are expected to affect salaries in 2025 and later:
The rise of SaaS and tech: The software-as-a-service (SaaS) field is a great area for sales workers. Companies in this field always look for skilled sales managers who can work well in the digital space and increase subscriptions.
E-commerce expansion: As online shopping becomes more popular, e-commerce businesses need sales leaders. These leaders can help improve online sales methods and manage remote teams effectively.
Data-driven sales strategies: The growing role of data analysis is changing how sales strategies are made. Workers with proven skills in using data to boost sales are highly sought after and earn more money.
These changing trends show that sales managers must stay flexible and keep learning to stay competitive in the job market and get the best average total compensation.
What Is the Average Sales Manager Salary in the US?
If you’re considering a career as a Sales Manager or already working in this role, you may be curious: “How much can I earn as a Sales Manager?”
Understanding salary trends in your role is essential for financial planning and career growth. Sales Managers play a critical role in driving team performance, meeting revenue goals, and strategizing sales plans, which often translates into competitive salaries.
On average, Sales Managers in the United States earn between $70,000 and $180,000 per year, depending on experience, location, and industry. In this guide, we’ll break down:
The typical Sales Manager salary structure
How experience, location, and industry impact earnings
Tips to negotiate a competitive Sales Manager salary
Sales Manager Salary Structure
A Sales Manager's compensation typically combines:
Base Salary: The fixed annual income that provides financial stability. This typically ranges from 70% to 85% of total earnings.
Variable Pay: Performance-based bonuses, commissions, and incentives that reward managers for achieving revenue goals. This makes up around 15% to 30% of the total compensation.
For instance, a Sales Manager with a $90,000 base salary may receive an additional $20,000–$30,000 in variable pay if their team meets sales quotas, bringing the total earnings to $120,000.
Average Sales Manager Salary by Experience, Location and Industry
Sales Manager Salary by Experience
Experience level plays a significant role in determining a Sales Manager's compensation:
Example: A mid-level Sales Manager at a mid-sized SaaS company might earn a base salary of $100,000, with total earnings of $140,000 after achieving quarterly targets. In contrast, a senior Sales Manager at an enterprise company like Oracle or Microsoft can earn $180,000+ annually.
Sales Manager Salary by Geographic Location
Salaries for Sales Managers often vary based on cost of living and regional demand. Major metropolitan areas and tech hubs typically offer higher compensation.
Example: A Sales Manager in San Francisco overseeing enterprise clients can earn up to $200,000 annually, while a peer in Atlanta may see total compensation closer to $120,000.
Sales Manager Salary by Industry
Different industries offer varying pay scales for Sales Managers, with sectors like technology and finance leading the way.
Example: A Sales Manager in the SaaS industry managing a team selling CRM solutions could earn $200,000+, while a Retail Sales Manager might see total earnings closer to $100,000.
Factors That Impact Sales Manager Salaries
Sales Manager salaries are influenced by multiple factors, including team performance, company size, industry type, geographic location, and specific skills. Below, we break down these factors in detail, illustrating their real-world impact with examples.
Team Performance
Sales Managers are responsible for driving team success, and their bonuses often depend on their team's ability to meet or exceed sales quotas. Companies reward performance to incentivize effective leadership and revenue growth.
Illustration:
At a SaaS startup, a Sales Manager whose team surpasses their annual sales quota by 20% might receive a performance bonus of $25,000 in addition to their base salary of $90,000.
In contrast, a Sales Manager at a large enterprise like Salesforce might oversee teams closing high-value deals. If the team achieves $10 million in revenue against a $9 million target, the manager may receive a substantial bonus of up to $50,000 on top of a $120,000 base salary.
Example: At companies like HubSpot or Workday, Sales Managers hitting or exceeding quotas are often eligible for quarterly or annual bonuses ranging between 20–30% of their base salary, driving total compensation well above $150,000.
Company Size
Larger organizations tend to pay higher salaries because of the scale and complexity of sales operations. Bigger companies often deal with enterprise-level clients, larger sales teams, and higher revenue goals, justifying bigger paychecks for Sales Managers.
Illustration:
A Sales Manager at a small to mid-sized company might earn a base salary of $80,000–$100,000, as they typically manage smaller teams and close deals worth $50,000–$100,000.
At a global tech company like Oracle or AWS, Sales Managers working on enterprise accounts might earn $150,000+ base salary with bonuses pushing their total earnings beyond $200,000. Here, the deals often exceed $1 million per client annually.
Example: A Sales Manager at Microsoft Azure, managing a team focused on cloud enterprise solutions, may command a total compensation package of $250,000+, reflecting the larger scope and revenue targets.
Industry
The industry a Sales Manager works in has a significant impact on compensation. High-revenue industries like Technology, Financial Services, and Healthcare offer the most lucrative pay structures, while retail or nonprofit sectors pay comparatively less.
Illustration:
In the Technology (SaaS) sector, a Sales Manager leading a team selling CRM software might earn an OTE (On-Target Earnings) of $180,000–$250,000 annually due to high deal values and recurring revenue.
Example: At Salesforce or HubSpot, Sales Managers benefit from high commissions when their teams close multi-year software contracts.
In the Healthcare/Pharma sector, a Sales Manager selling medical devices may earn $120,000–$150,000, depending on territory size and annual sales growth.
By contrast, Retail Sales Managers often see total earnings between $70,000–$90,000, as deal values and margins are generally lower.
Location
Geographic location is a major factor due to differences in cost of living, local economic conditions, and regional job demand. Sales Managers in urban centers like San Francisco, New York City, or Boston typically earn higher salaries than those in smaller cities or rural areas.
Illustration:
A Sales Manager in San Francisco overseeing a SaaS team might earn a base salary of $130,000 with a total compensation exceeding $200,000 to account for the high cost of living.
A Sales Manager in Atlanta, GA or Austin, TX—where the cost of living is lower—could earn a base salary of $90,000–$110,000, with total compensation around $140,000.
Example: In tech hubs like San Jose, Sales Managers benefit from working with large enterprise clients, pushing their compensation packages to $180,000–$250,000 annually. Meanwhile, a peer in Nashville, TN, may see compensation closer to $110,000.
Skills and Education
While experience drives a Sales Manager's earning potential, specific skills and certifications can further enhance their value. Employers often reward managers with advanced knowledge of tools, methodologies, or leadership training.
Key Certifications and Skills:
Certified Sales Leader (CSL): Recognized globally, this certification demonstrates strategic leadership skills and can boost earning potential by up to 15%.
Salesforce CRM Expertise: Managers skilled in Salesforce tools often command higher salaries in the tech industry.
Sales Methodologies: Training in frameworks like MEDDIC or Challenger Sales makes managers more effective and marketable.
Illustration:
A Sales Manager with a CSL certification might earn $10,000–$15,000 more annually compared to a peer without it.
A manager leading a SaaS team and proficient in Salesforce CRM might negotiate a salary of $130,000 instead of $110,000 due to their advanced skills.
Example: Companies like Zoom or Adobe prefer managers with specialized certifications, offering higher compensation packages to those who demonstrate expertise in sales methodologies and CRM tools.
How to Negotiate a Competitive Sales Manager Salary
Negotiating a competitive salary as a Sales Manager requires preparation, confidence, and a strategic approach. Since compensation can include multiple components, including base salary, bonuses, and perks, a well-rounded negotiation strategy can maximize your earnings.
Research Salary Benchmarks
Before entering negotiations, understand the current market trends for Sales Manager salaries in your industry, location, and experience level. Use tools like Glassdoor, LinkedIn Salary, and Payscale to gather accurate data.
Illustration:
If you are a Sales Manager in the SaaS industry with 5+ years of experience, research might show a median salary of $120,000 base with $50,000 in variable pay in a city like New York. Use this data as a baseline when entering discussions with your employer.
For a Sales Manager in the healthcare industry, benchmarks may reveal salaries closer to $110,000 base, which you can use to justify a specific salary ask.
Highlight Leadership Achievements
To demonstrate your value, focus on quantifiable achievements that showcase your leadership, team success, and revenue impact. Employers are far more likely to agree to higher compensation if you can prove your performance.
Illustration:
"I led a sales team to exceed annual revenue targets by 20%, bringing in $2 million in new business for the company. This directly impacted profitability and client retention."
"I implemented a new sales strategy that shortened the sales cycle by 30%, resulting in a 25% revenue increase last quarter."
Example: A Sales Manager negotiating with a mid-sized SaaS company can present these achievements to justify a raise from $100,000 to $120,000 base salary with performance bonuses.
Negotiate Total Compensation
Base salary is just one part of a Sales Manager’s earnings. Focus on negotiating the total compensation package, which includes bonuses, commissions, equity options, and benefits.
Key Negotiation Points:
Performance Bonuses: Tie a portion of your pay to achievable sales team goals.
Stock Options or RSUs: Particularly valuable in fast-growing companies and startups.
Flexible Benefits: Additional vacation days, remote work options, or professional development funds.
Illustration:
If your employer cannot meet your salary request of $130,000 base, negotiate for a $30,000 quarterly performance bonus and stock options valued at $20,000 to balance the total package.
At a SaaS startup, you might negotiate for flexible working hours and a stipend for professional training to increase your overall compensation value.
Leverage Market Demand
If you’re in a high-demand industry, such as technology or finance, use that to your advantage. Companies struggling to find top talent are more likely to meet higher salary demands.
Illustration:
“Given my expertise in managing SaaS sales teams and my proven ability to exceed targets by 25%, I believe my compensation should align with the industry benchmark of $150,000 OTE.”
Example: Sales Managers skilled in Salesforce CRM and enterprise deal management are in high demand. Highlighting this during negotiations can justify asking for $20,000+ above the initial offer.
Summary: Sales Manager Salaries
To Sum Up
Sales Manager salaries are shaped by several interconnected factors, including team performance, company size, industry, location, and skills. By understanding these factors and strategically building expertise, Sales Managers can position themselves for higher earnings and career growth.
Whether you’re leading a team at a growing startup or managing enterprise-level accounts at a global tech company, the right combination of performance and skills can unlock significant earning potential.
By understanding the factors influencing Sales Manager salaries, you can position yourself for greater earnings and career growth. Whether you’re negotiating your first role or aiming for a senior position, use this data to set realistic expectations and make informed decisions.
FAQs
What is the average salary of a Sales Manager?
The average base salary for a Sales Manager in the US ranges from $70,000 to $135,000, with total compensation (including bonuses and commissions) typically between $100,000 and $180,000.
Example: A Sales Manager at a SaaS company in San Francisco might earn a base salary of $120,000 and receive performance bonuses of $50,000, pushing total compensation to $170,000.
Which industries offer the highest Sales Manager salaries?
Sales managers can find the most lucrative compensation packages across the technology, finance, and healthcare sectors. Technology and SaaS companies lead the way, offering on-target earnings (OTE) between $150,000 to $250,000, with particularly high commission potential in enterprise sales. Financial services follow closely behind, where sales managers handling investment and insurance products can earn between $120,000 and $180,000. In the healthcare sector, sales managers specializing in medical devices and pharmaceuticals typically command salaries ranging from $110,000 to $150,000.
Example: A Sales Manager at a cybersecurity SaaS company like Palo Alto Networks could earn up to $200,000 annually, including variable pay.
How does location affect Sales Manager salaries?
Sales Manager salaries are highest in cities with a high cost of living and strong job markets, such as San Francisco, New York, and Boston.Example: A Sales Manager in Austin, TX managing a regional SaaS team might earn $130,000 total compensation, while the same role in San Francisco could earn $180,000 due to higher deal values and living costs.
What skills and certifications can help me increase my salary?
To boost your earning potential as a Sales Manager, consider investing in relevant skills and certifications. Some of the most valuable certifications include the Certified Sales Leader (CSL), Salesforce Certified Sales Professional, and MEDDIC Sales Methodology Certification, which can enhance your qualifications and marketability in the field.
Example: A Sales Manager with a Salesforce Sales Certification can command a salary premium of up to 15%. At a SaaS company, this could mean negotiating a base salary increase from $110,000 to $125,000.
What qualifications are needed to become a Sales Manager in 2025?
Becoming a successful sales manager needs a mix of education and experience. Most sales manager jobs ask for a bachelor's degree in business administration or a similar area. This is especially true in competitive places like New York, New Jersey, and Virginia.
How do Sales Manager salaries vary by experience in the United States?
Experience plays a big role in how much sales managers earn. People starting out in these jobs usually have lower salaries. However, those with many years of successful experience can ask for higher sales manager salaries because of their skills and knowledge.
Are there notable salary differences for Sales Managers across industries?
Yes, the differences between industries can greatly affect a sales manager's total compensation. Industries that are growing fast or have a lack of skilled workers usually pay more. They do this to attract and keep talented people.
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