Sales Manager Salary: How Much Can You Make?
Damon Alexander
• 5 min read
Sales manager salaries can be highly attractive, thanks to generous commission schemes. But exactly how much can you expect to earn as a sales manager? And what factors will affect it?
We’ve collated all the available data on sales manager salaries, so keep reading as we break down how much you can earn. We’ll explore how location, product and pay structure affect average sales manager salaries. And we’ll even share some handy tips for negotiating a better base rate and commission structure.
What’s The Average Sales Manager Salary In The US?
According to the US Bureau of Labor Statistics (BLS), the average sales manager salary in the US in 2021 was $127,490 per year.
However, there was a significant variation in sales manager salaries. The bottom decile earned under $61,090, while the top decile earned above $208,000.
6 Factors Affecting Sales Manager Salaries
Sales manager salaries can be unpredictable, thanks to complex commission and bonus structures. However, these are the six factors most likely to determine your take-home wages.
1. The Product
As a sales manager, the product your team sells can dramatically impact your probable salary. For example, BLS data shows that sales managers in professional, scientific and technical services earn $161,920 a year on average. Similarly, finance and insurance sales managers have a median salary of $161,520.
Meanwhile, manufacturing sales managers and wholesale trade managers earn slightly above average, at $131,340 and $127,690 respectively.
And with a median salary of $80,340 a year, retail sales managers are some of the lowest-paid sales managers in the country. However, that’s still almost double the median US salary of $45,760.
Of course, these are still pretty big niches. Let’s look at some more specific examples, based on self-reported data gathered and analyzed by GlassDoor.
- New car sales manager salary: $101,356
- Medical sales manager salary: $90,391 per year
- Real estate sales manager salary: $90,197
- Computer sales manager salary: $76,974
- Hotel sales manager salary: $70,986
2. Pay Structure
Sales manager salaries can be complex. They are normally made up of three things: the base rate, the commission and bonuses.
The base rate is a set amount that you will always be paid. It’s often used to ensure that the company meets its legal requirements, even if your team misses its sales quota. Some companies will tie your base rate to your team’s sales record over the last year or your seniority in the company.
The commission represents a percentage of all the sales made by you or your team. The commission percentage will be set by the company. Some companies create commission bands. This means that if your team makes more sales, your commission percentage increases.
Not all companies pay bonuses, but many do. These could be for having one of the top-performing sales teams of the month, for making over a certain number of sales, or simply a seasonal bonus.
3. Your Company
Simply put, some companies pay better than others. This might be due to a more generous pay structure, higher prices or a more popular product.For example, GlassDoor lists these median car sales manager salaries:
- CarMax sales manager salary: $106,938
- AutoZone commercial sales manager salary: $105,980
- AutoNation sales manager salary: $119,342
While all three are six-figure salaries, the AutoNation salary represents more than an 11% increase over the CarMax sales manager salary.
(Of course, these figures are based on anonymous data from sales managers. Only CarMax, AutoZone and AutoNation know exactly how much their average sales manager salaries are.)
4. Your Team’s Sales Skills
If your salary includes a commission from your team’s sales, then their performance will have a significant impact on your monthly take-home pay. The better you can train and motivate your team, the more you — and they! — will earn.
5. Location
Your location can affect your team’s sales levels, and in turn, your commission. If your company sells high-end jewelry, for example, your team will likely make more sales if they’re based in a wealthier state. Take these data points from GlassDoor as an example:
- Jewelry store manager salary, Greenville, Mississippi: $51,981
- Jewelry store manager salary, New York City: $100,620
Inside sales managers, whose teams make sales via the phone or web, may find that they speak to potential clients all over the country. However, their sales techniques will need to adapt to the lack of face-to-face contact. In fact, the average inside sales manager salary is only $68,615, according to GlassDoor data.
6. Seniority
The size of the team you manage will affect the salary you can expect to receive. GlassDoor lists the following average salaries:
- Regional sales manager salary: $90,514
- Sales account manager salary: $66,837
- Sales operation manager salary: $75,359
How To Negotiate A Higher Sales Manager Salary
After wowing the recruiter during your sales manager interview, you’ll hopefully receive a job and salary offer. But you might be wondering if you can negotiate a better starting wage.
Some large companies have a strict salary offer that prevents them from offering a better base pay or commission rate. However, many companies are willing to offer a higher starting salary if asked.
We’ve written an in-depth guide to successfully negotiating a higher salary. However, to summarize:
- Do your research. Know how much sales managers typically make in your industry and location.
- Decide how much you ideally want to earn and how much you would be satisfied with.
- Prepare your case: why do you deserve a higher starting salary? You could mention your current salary, your sales record, the responsibility of managing an above-average team size or simply the typical sales manager salary in your area.
- Balance requesting a higher base rate or commission with showing your enthusiasm for the role.
- Ask for more time to consider the offer if you need it.
Make An Excellent First Impression With A Winning Resume
The first step to landing an attractively compensated sales manager role is writing a resume that sells your skills and background.
Your resume needs to highlight why you’re the ideal sales manager for the job, while also being adapted to the product and company in question. It should highlight your successful sales record, and be attractively laid out and optimized for hiring algorithms.
Our range of sales manager resume templates will help you get started. Each template is machine-readable and easy to tailor to your background. Plus, our resume builder will walk you through selecting the ideal structure for your sales experience. It will even suggest recruiter-approved phrasing to help you stand out from other applicants.
It takes just 10 minutes to create a fully optimized sales manager resume, so build your resume now.
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