Align Pay with Performance: 15 Key Sales Compensation Metrics Across Industries

A top sales representative who consistently hit targets, mentored others, and kept the team energy high drops a two-week notice on your desk. No warning signs. Just a polite goodbye.

You scramble for answers.

Was it culture? Was it management? Was it the compensation?

Chances are, it was the compensation.

In 2025, competitive pay isn’t a nice-to-have; it’s survival.

Top salespeople know their worth. They’ve seen the LinkedIn offers. They know companies are willing to pay for performance, and they won’t think twice before leaving if your compensation plan feels outdated, confusing, or misaligned with market realities.

Sales compensation isn’t just about dollars and cents. It’s about trust, fairness, motivation, and driving better sales productivity across your team. 

If you’re serious about attracting and keeping the best, this guide is for you. Inside, you’ll find the 15 most critical sales compensation benchmarks for 2025 that you can start using right now.

What Are Sales Compensation Benchmarks?

Sales compensation benchmarks are industry standards that guide how companies pay for sales teams. They cover base salaries, commissions, bonuses, and quotas to ensure competitive, fair, and performance-driven compensation. 

These benchmarks aren’t random either. They’re drawn from industry studies, surveys, and real company data to help you keep pace with changing market expectations.

Without benchmarks, designing a sales compensation structure is a shot in the dark. With benchmarks, you can confidently align your pay packages with what top sales talent expects and what competitors are already offering.

Why Sales Compensation Benchmarks Matter

Compensation isn’t just about paying people what you can afford. It's about paying them what they’re worth, in a way that drives results and loyalty. Here’s why setting clear sales compensation benchmarks is mission-critical in 2025:

1. Maintaining Competitive Advantage
   When you’re hiring top sales talent, you’re not just competing against companies in your industry, you’re competing against everyone who values strong closers and relationship builders.
   
   According to Alexander Group’s 2024 Sales Compensation Trends, 61% of companies plan to increase sales headcount this year, and total compensation costs are projected to rise by 5.3%. Falling behind on market benchmarks means handing your best candidates to someone else.

2. Aligning Pay with Performance
   The best compensation plans don’t just reward closed deals, they drive the right sales behaviors. Benchmarked plans align pay with activities that grow the business: hitting quotas, landing strategic accounts, or expanding customer lifetime value.
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   When sellers see how their daily efforts translate into earnings, motivation skyrockets and so does performance.

3. Staying Compliant with Market Trends
   Compensation trends don’t stand still. New roles emerge, expectations shift, and inflation pressures can reshape what "fair pay" means overnight.
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   WTW’s 2023 Global Compensation Survey shows voluntary attrition rates around 11–12% across key markets like the US and UK, emphasizing how crucial it is to stay competitive. Benchmarking ensures your pay structures evolve with the market, not after losing valuable team members.

4. Supporting Long-Term Growth
   A well-benchmarked compensation plan is a foundation for scalable growth. When your pay structures are aligned with industry standards and performance expectations, you can confidently expand into new markets, hire at scale, and onboard new reps faster. It ensures consistency as your team and your revenue goals grow.

5. Legal Considerations: Wage Transparency, Pay Equity, and Compliance
   Today’s compensation plans must also navigate an increasingly complex legal landscape. Wage transparency laws, such as those in Colorado, New York City, and California, require companies to disclose salary ranges in job postings. DEI initiatives are also pushing companies to close pay gaps across gender, race, and other identities, making regular pay equity audits a necessity.
   ‍
   Country-specific and state-specific laws can affect how compensation is structured, making it critical to benchmark with legal compliance in mind from the start.

15 Sales Compensation Benchmarks to Use in 2025

Building a competitive and motivating sales compensation plan starts with understanding the benchmarks that top-performing companies follow. These benchmarks give you a clear picture of what today's sales professionals expect and what it takes to attract and retain the best talent in 2025.

Note: This guide covers general sales roles across industries. If you're looking for SaaS-specific compensation numbers, read SaaS Sales Compensation Benchmarks.

1. Base Salary 
   Base salary defines the standard fixed pay that sales reps earn regardless of performance. They create a sense of financial security, helping salespeople focus on building a pipeline and nurturing deals without worrying about making rent. 
   ‍
   Here’s what Repvue salaries reveal about average base salaries:

2. Commission Rates
   Commission rates are the variable part of a salesperson’s earnings, directly tied to the deals they close. This benchmark defines how much additional income a rep can earn based on their sales performance.
   
   According to ICONIQ’s 2024 Sales Compensation Report, typical commission rates for Account Executives look like this:

• 10% for new logo and expansion revenue
• 5% for services revenue
• 4% for renewals
  
  Beyond base commission structure, accelerators are widely used to reward overachievement. In fact, 82% of companies now offer accelerated commissions that boost a rep’s payout by 20% to 30% once they surpass their quota.

3. On-Target Earnings (OTE) Benchmarks
   On-Target Earnings (OTE) represent the total expected earnings for a sales rep when they achieve 100% of their sales quota. It combines base salary and variable pay into a single, clear number. Benchmarking OTE helps ensure your full earnings package stays competitive, not just individual pieces like salary or commission. It’s one of the most important numbers top performers look at before saying yes to an offer.
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   Typical OTE ranges by role:

• SDR/BDR: $70,000–$90,000
• Mid-Market AE: $120,000–$160,000
• Enterprise AE: $180,000–$250,000+
  
  

4. Bonus Programs
   Bonus programs reward sales reps for achieving specific goals beyond just closing deals.
   Unlike commissions, which are typically tied to revenue growth, bonuses can be tied to broader achievements like hitting annual targets, retaining customers, or expanding key accounts.
   
   Standard bonus program structures typically include:

• Annual Performance Bonuses: Paid out for exceeding revenue or strategic goals.
• Customer Retention Bonuses: For reps who maintain a certain renewal rate.
• Team Bonuses: Based on collective achievements like regional sales growth
  
  When structured right, they reinforce the behaviors that help grow revenue sustainably over the long term.

5. Performance Metrics
   Performance metrics define the specific activities and results that sales reps must deliver to earn their commissions, bonuses, or promotions. They help make expectations crystal clear, reps know exactly what matters and what will drive their earnings.
   
   Here are the most common KPIs tied to compensation:

• Quota Attainment (% of sales target achieved)
• New Customer Acquisition (number of new logos)
• Renewal Rates (for subscription-based businesses)
• Average Deal Size (growing ACV or order value)
• Sales Cycle Efficiency (closing deals faster)
• Cross-Selling and Upselling Metrics
  
  Good performance metrics balance short-term wins with long-term customer value.

6. Sales Quotas
   Sales quotas are the revenue targets your reps are expected to hit within a specific time frame, such as monthly, quarterly, or annually. They act as the backbone of any compensation plan, shaping how commissions and bonuses are earned. Set them too low, and you leave money on the table. Set them too high, and you risk burning out your team.
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   Here’s a general look at annual quota ranges by role in SaaS and B2B sales:

Note: These benchmarks reflect industry norms, but actual quotas vary by company size, average deal size, and sales motion.

According to the ICONIQ Sales Compensation Report, healthy quota-to-OTE ratios typically fall between 5x and 9x. So, if an AE has a $200K OTE, you’d expect their annual quota to be somewhere between $1M and $1.8M. That ratio helps ensure reps are challenged, but not set up to fail.

7. Territory Size
   Territory size defines the geographical area, customer segment, or account list assigned to a sales rep. It directly impacts how much opportunity a rep has to hit quota and earn commissions. Larger or more lucrative territories typically mean higher sales potential and, in turn, higher earnings expectations.
   
   Key ways territory size impacts compensation:

• Larger territories often come with higher quotas and sometimes higher base salaries to match the potential workload.
  
• Smaller, high-quality territories may offer higher commission rates to balance the limited volume.
  
• Account-based territories (e.g., top 50 strategic accounts) may include bonuses for multi-year relationship building.
  
  Getting territory design right is critical: it keeps reps motivated, avoids internal competition, and ensures fair earning opportunities.

8. Sales Cycle Length
   Sales cycle length refers to the average amount of time it takes to move a prospect from initial contact to a closed deal. Longer sales cycles usually involve bigger deals, more decision-makers, and higher risk, so they often come with higher base salaries or richer commission plans. Shorter cycles mean faster wins, but typically smaller deal sizes and quicker turnover.
   ‍
   How sales cycle length impacts compensation:

• Short Sales Cycles (Under 60 Days): Higher commission rates, lower base salary. Focused on volume selling.
  
• Mid-Length Sales Cycles (2–6 Months): Balanced base and commission mix. Often seen in mid-market B2B sales.
  
• Long Sales Cycles (6+ Months): Higher base salary to sustain reps during longer closing periods, with big one-time commissions or bonuses for wins.
  
  Pro Tip: Always factor sales cycle length into your compensation design; otherwise, long-cycle reps will lose steam waiting for their first paycheck.

9. Location-Based Compensation
   Location-based compensation adjusts salaries and commission plans based on where a sales rep lives or works. Cost of living, local talent competition, and regional demand all influence what “competitive pay” looks like in different markets.
   
   Examples of how geography impacts compensation:

• High-Cost Cities (e.g., San Francisco, New York):
  
  • Base salaries are 15–20% higher than national averages
  • Higher expectations for quota attainment and deal size
    
• Mid-Cost Cities (e.g., Austin, Denver, Atlanta):
  
  • Base salaries close to the national median
  • Often sweetened with better bonus plans or stock options
    
• Low-Cost Regions (e.g., Midwest US, Tier-2 Indian cities):
  
  • Base salaries are 10–15% lower
  • Focus on commission-heavy structures to reward performance
    

10. Company Culture & Values
    Company culture and core values heavily influence how sales compensation plans are designed. If your sales organization prioritizes collaboration, long-term relationships, or innovation, your incentives should reflect those values, not just individual revenue numbers.
    
    Ways company culture shapes compensation:

• Collaboration-Driven Cultures:
  
  • Team bonuses for hitting collective targets
  • Cross-functional incentives with Customer Success or Marketing
    
• Innovation-Focused Cultures:
  
  • Bonuses for upselling new products or pilot programs
  • Special rewards for landing first customers in new markets
    
• Customer-Centric Cultures:
  
  • Incentives tied to customer satisfaction scores (CSAT, NPS)
  • Renewal bonuses for maintaining strong client relationships

11. Sales Training and Development
    Sales training and development programs don’t just build skills—they directly impact how you structure compensation. When reps see a clear connection between growth and earning potential, they stay longer, perform better, and help raise the entire team’s standard.
    
    How training impacts compensation:

• Certification Bonuses: One-time bonuses for completing sales or product training certifications.
  
• Skill-Based Promotions: Structured raises based on mastery of new sales techniques or tech stacks.
  
• Development Milestone Incentives: Bonuses or SPIFFs (Special Performance Incentive Funds) tied to completing key training programs.
  
  Pro Tip: Use training-linked incentives not just for onboarding, but also to drive upskilling for mid-level and senior sales roles.
  
  

12. Sales Team Collaboration Incentives
    Sales is no longer a solo sport—success increasingly depends on how well teams work together across roles, regions, and departments.  Collaboration incentives reward reps not just for individual wins, but for helping teammates succeed, sharing knowledge, and contributing to bigger group goals.  Tying part of compensation to teamwork strengthens culture, boosts morale, and ultimately drives better results across the board.  It shifts the mindset from “my deals” to “our wins.”
    ‍
    Ways companies build collaboration into compensation:

• Team-Based Bonuses: Bonus pools shared among teams for hitting collective revenue or retention targets.
  
• Referral Bonuses: Rewards for reps who bring leads to other team members or help close multi-region deals.
  
• Cross-Functional Incentives: Bonuses tied to successful handoffs between Sales and Customer Success, or between SDRs and AEs.
  

13. Retention Bonuses
    Retention bonuses are financial incentives designed to encourage sales reps to stay with the company over a specific period.  They’re especially useful in competitive industries where top performers are constantly being approached by recruiters.  Retention bonuses show reps that loyalty is valued and that there’s a clear, tangible reward for sticking around through the ups and downs.
    
    Common retention bonus structures:

• Annual Retention Bonuses: Paid out after completing each work anniversary (e.g., $5,000 at the 2-year mark).
  
• Milestone Bonuses: Larger lump sums awarded at major tenure points (e.g., $10,000 after 5 years).
  
• Multi-Year Retention Plans: Bonuses split into smaller payouts over multiple years to encourage continuous commitment.
  
  

14. Flexibility and Work-Life Balance Benefits
    Flexibility and work-life balance benefits are now a critical part of the total incentive compensation package, not just nice extras. Today’s top sales talent expects more than just good pay; they want the freedom to manage their time, avoid burnout, and maintain a healthy life outside of work. Offering flexible benefits plays a major role in attracting, motivating, and retaining high-performing teams, especially in competitive industries.
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    Common flexibility and work-life balance incentives:

• Remote and Hybrid Work Options: Freedom to work from anywhere or split time between home and office.
  
• Unlimited or Generous PTO Policies: Encouraging reps to actually take time off without penalty.
  
• Mental Health Support: Access to counselling, wellness stipends, or mental health days.
  
• Flexible Hours: Allowing reps to set their own schedules as long as targets are met.
  

15. Cross-Industry Sales Compensation Variations
    Industry benchmarks highlight how sales compensation strategies differ depending on the market you're in. Sales roles aren't one-size-fits-all—what works for a SaaS startup won't fit a manufacturing company or financial services firm. Different industries have different expectations for base pay, commission splits, quotas, and bonus opportunities. Using industry-specific data ensures you offer packages that feel both competitive and fair to your sales team.
    ‍
    Here's how sales compensation typically varies by industry:

• Technology (SaaS, Software):
  
  • Higher base salaries ($80,000–$100,000 for mid-level reps)
  • Lower commission rates (5–7%), often focused on recurring revenue (subscriptions)
    
• Financial Services:
  
  • High base salaries ($90,000–$120,000)
  • Bonus-heavy structures (20–30% of total comp tied to annual bonuses)
    
• Manufacturing and Industrial Sales:
  
  • Lower base salaries ($60,000–$80,000)
  • Higher commission percentages (up to 15%) are tied to large one-time purchases
    
• Healthcare and Pharmaceuticals:
  
  • Strong base salaries ($85,000–$110,000)
  • Incentives tied to product adoption and renewal rather than just new sales

How to Improve Sales Compensation Benchmarks

Sales compensation benchmarks aren’t a one-time project—they need constant fine-tuning to stay competitive, fair, and motivating. The companies that win top sales talent are the ones who treat compensation like a living system: adjusting it based on market changes, team feedback, and business goals. Here’s how you can start improving your benchmarks today:

Step 1: Analyze Industry Standards and Best Practices

You can’t set strong benchmarks without knowing what your competitors are offering. Regularly studying industry trends ensures your sales team doesn’t feel underpaid or tempted to leave.

Steps You Can Take:

• Review at least 2–3 trusted industry reports (e.g., Alexander Group, Salesforce) every year.
• Join industry-specific associations or Slack communities for real-time comp insights.
• Track compensation trends in job postings for similar sales roles in your industry.

Step 2: Align Compensation with Business Objectives

Your compensation plan should push reps toward the outcomes your company cares about most, not just raw deal volume. Clear alignment ensures sales incentives actually drive business success.

Steps You Can Take

• Tie bonus structures to strategic goals like customer retention or upselling.
• Offer higher rewards for landing key target accounts.
• Review comp alignment during annual strategic planning sessions.

Step 3: Segment Compensation by Role and Performance

Different sales roles drive value in different ways. Your sales comp plan needs to reflect those differences to be fair, motivating, and effective.

Steps You Can Take

• Create distinct comp plans for SDRs, AEs, and Enterprise Sales reps.
• Set different quotas and payout structures based on role responsibilities.
• Reward overperformance differently for hunters (new logo acquisition) vs farmers (account growth).

Step 4: Incorporate Flexibility for Evolving Market Conditions

Markets shift fast, and rigid comp plans can leave your sales team demotivated during tough periods. Building in flexibility lets you stay competitive without major overhauls.

Steps You Can Take

• Introduce temporary SPIFFs (Special Performance Incentives) during slow seasons.
• Allow for mid-year bonus adjustments based on market conditions.
• Build compensation "levers" you can quickly pull without rewriting the entire plan.

Step 5: Use Data to Make Informed Decisions

Gut feelings don’t build winning comp plans—good data does. Tracking the right metrics helps you tweak plans early and avoid costly mistakes.

Steps You Can Take

• Track quota attainment, turnover rates, and sales cycle lengths every quarter.
• Survey reps anonymously about compensation satisfaction twice a year.
• Use CRM and payroll data to analyze comp effectiveness across teams.

Step 6: Incentivize Desired Behaviors with Bonuses and Quotas

If you want reps to act differently, you have to pay differently.
Bonuses and quotas should reinforce the exact behaviors that move your business forward.

Steps You Can Take

• Offer accelerators for overachieving quota (e.g., 1.5x commission after 120% attainment).
• Reward team goals like multi-product sales or cross-sell deals.
• Tie part of the bonus payouts to customer satisfaction or retention metrics.

Step 7: Communicate Transparently with Sales Teams

The best compensation plan still fails if reps don’t understand how it works.
Transparent communication builds trust, reduces frustration, and boosts motivation.

Steps You Can Take

• Hold kickoff sessions whenever you roll out new compensation changes.
• Share simple breakdowns of how each piece of compensation is calculated.
• Keep one-on-one comp discussions open, especially after reviews or promotions.

Step 8: Regularly Review and Adjust Compensation Plans

Markets, team size, product focus—it all changes over time. Compensation plans should evolve with your business, not lag behind it.

Steps You Can Take

• Benchmark your plan against 3–5 similar companies every 12 months.
• Reassess your incentive mix (base vs commission vs bonus) annually.
• Adjust quotas and payout curves if less than 60% of reps are hitting targets.

5 Common Challenges with Sales Compensation Benchmarks

Even the best-compensated sales teams can run into trouble if benchmarks aren’t handled thoughtfully. Here are some of the biggest challenges companies face when setting or maintaining their sales compensation benchmarks—and why being proactive matters.

1. Misalignment with Business Objectives
   When compensation isn’t tied tightly to business goals, sales teams can end up chasing the wrong outcomes. For example, if bonuses only reward closed deals but not customer retention, reps may prioritize short-term wins over long-term value.
   Without constant alignment between incentives and company strategy, even high-performing reps can steer your growth in the wrong direction.

2. Difficulty in Adjusting Benchmarks Over Time
   Markets evolve faster than most comp plans do. If your benchmarks aren’t reviewed regularly, you could end up offering outdated salaries, unrealistic quotas, or irrelevant bonuses.
   The longer it takes to adjust, the more risk you run of losing top talent to competitors who move faster to stay market-aligned.

3. Balancing Competitive Pay with Budget Constraints
   Every company wants to offer the best compensation, but budgets are real constraints. It’s a constant balancing act: pay too little, and you lose your best reps; pay too much, and you risk hurting profitability.
   Smart comp planning requires creativity, like structuring pay around performance milestones, offering deferred bonuses, or tying increases to clear revenue triggers.

4. Managing Diverse Role Expectations
   Different sales roles contribute to success in very different ways, but compensation plans often group them under broad benchmarks. When SDRs, AEs, and Enterprise reps are measured by the same standards, it creates unfairness and frustration.
   Each role needs tailored targets and rewards based on what they control—otherwise, you risk demotivating parts of your team without even realizing it.

5. Overcomplicating Compensation Plans
   Trying to cover every possible scenario can make compensation plans too complex for reps to understand or care about. When earnings calculations feel confusing or unpredictable, reps lose trust and motivation.
   The most successful companies keep comp plans simple, transparent, and easy to tie back to real-world performance.

Conclusion 

Sales compensation benchmarks aren’t just a spreadsheet exercise. They’re one of the most powerful levers you have to attract, motivate, and retain a winning sales team. When benchmarks are built thoughtfully and updated regularly, they don’t just protect your company’s competitiveness, they fuel growth, loyalty, and long-term success.

If you want your sales team to deliver record-breaking results in 2025 and beyond, start by assessing your current compensation plans against the benchmarks we covered today. Even small improvements can create a big impact when they’re focused on what matters most to your team.

Now’s the time to lead with clarity, fairness, and smart incentives. Review your benchmarks, listen to your reps, and build a compensation system that sets everyone up to win.

If you’re ready to make your sales compensation plans more data-driven, scalable, and easy to manage, book a demo with Everstage. We’d love to show you how modern sales teams use smarter compensation tools to stay ahead.