How Much Do Salespeople Earn?

5 years ago

Sales are often among the more profitable fields, but in many cases, salaries in sales are structured differently compared to other jobs.
People who have never worked in sales are often surprised to learn that a large portion of earnings is not paid as a fixed salary, but as bonuses based on specific results.

So, what exactly is the income in sales, and how is it paid?

In principle, several compensation models can be distinguished:

• No fixed salary. The employee works under a self-employment certificate, and at the end of the month receives bonuses based on achieved results. Insurance or real estate agencies often operate on this principle. Typically, people in such companies earn anywhere from a few hundred to several thousand euros per month. All the risk lies on the employee’s shoulders—if sales don’t happen, there’s no income. However, the employee also has no binding obligations. They can leave at any time or take on additional work without guilt, since there are no serious mutual commitments.
• A certain fixed salary (from minimum wage up to €800) plus bonuses. Usually, the essence of this model is that bonuses are attractive enough, and most income can come from successful sales. The fixed part gives employees a “foundation under their feet” each month. With bonuses, this model allows for earnings of €2,000–€4,000 per month (sometimes more, depending on seasonality, experience, and the products/services sold). Of course, such income usually isn’t achieved immediately—results typically come after six months, a year, or even two.
• A safe fixed salary (€800–€1,500) and smaller bonuses. This model is often chosen by companies where the sales cycle is relatively long (six months, a year, or more) and which aim to attract employees with several (or even a dozen) years of sales experience. Here, the employer takes on greater risk, as for some time it can only be assumed whether the employee will deliver sales. Employees in this model feel secure. Once they build up experience and clients, their overall earnings with bonuses are similar to the previous model.
• Main income from a fixed salary, bonuses paid only quarterly or yearly. This model is common in companies selling services or products with long sales processes. Fixed salaries here reach €1,500–€3,000 plus bonuses. Typically, such high fixed salaries are paid to professionals with 10+ years of sales experience, who are in short supply in certain sectors. In many cases, bonuses are small—only 10–30% of total income. This is a very safe model for employees, but overall, earnings are often similar to the previous models, or sometimes even lower.

There are also cases where sales professionals earn much higher sums than mentioned here. However, this usually applies to a small group of top performers working with specific products or services. In other words, there are always top performers who earn significantly more than others, and there are companies or sectors where earning potential is more favorable.

To realistically assess how much you can earn at a particular company, it’s worth paying attention to the following criteria:

• The length of the sales cycle;
• Bonuses for completed work;
• How many salespeople will be doing the same job in the company (i.e., how much you’ll be competing internally and how large the sales pool is);
• The share of fixed salary;
• How much other employees in the same role are earning;
• How competitive the company’s products/services are in the market (brand awareness, reputation, pricing, and other sales factors);
• The sales process the salesperson is responsible for;
• What technical support (if any) is provided for sales;
• The company’s position in the market compared to competitors;
• The sector you’ll be working in, how well you understand it, and whether you already have relevant experience or contacts;
• Who your direct manager will be, your relationship with them, and how this may influence your success.

By summing up these criteria, you can form a realistic picture of your potential earnings in sales. If most of the factors are favorable, you’ll likely succeed and can expect an average monthly net income of €1,000–€4,000 or even more. Once again, let’s not forget that the biggest money usually goes to those responsible for acquiring new clients or managing and growing the largest existing ones, since this is the most complex part of sales, requiring effort, persistence, and long-term work.