A guide to sales salary negotiation

Published: Wed, 06/25/25

Updated: Thu, 06/26/25

June 25, 2025

TOGETHER WITH

Good morning Quota readers of all shapes and sizes, and welcome back to another sun-drenched issue of the sales newsletter the Wall Street Journal calls “really good and funny and stuff.” In this week’s issue, we’ll look at how to negotiate salary and comp, share a Sales Fail about a video background, and give some advice to a rep who doesn’t want to upsell. Let’s do this.

NUMBER OF THE WEEK

Sales reps can spend up to 40% of their time searching for someone to call.

Source: Inside Sales

SALES ROUNDUP

Here’s what’s happening in the sales world this week:

Microsoft is planning to cut thousands of jobs, particularly in sales, as the tech giant streamlines its workforce amid increased investments in artificial intelligence. The latest layoffs follow Microsoft’s previous round of job cuts in May, which affected about 6,000 employees. The layoffs are expected to be announced early next month, following the end of the tech giant’s fiscal year. You can read more about it here.
According to a recent article in SaaStr, 36% of B2B companies cut their sales development teams in 2025. Whether it’s due to AI, or other industry trends, the same level of cuts did not apply to other roles—sales engineers saw a 14% decrease, account executives saw a 25% cut, and professional services were reduced by 17%. Even more telling, only 19% of companies increased their SDR headcount—the lowest growth rate across all sales functions. You can read the article here.

FEATURE

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, or 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.

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've 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.

MEME OF THE WEEK

Source: Instagram -- Sales Humor

QUIZ

What is the average price for a new car in June 2025?

A. $48,699
B. $39,433
C. $38,090
D. $12,400

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

I sell project management software and had been working on closing a deal with a consulting firm for months. This was potentially my biggest commission of the year. I was working from my tiny NYC apartment where my desk was crammed into my bedroom. I'd been traveling all week for client meetings and my room was an absolute disaster. I always used a virtual background during sales calls because I didn't want prospects to see my bed in the background, so I spent my time preparing for the call rather than cleaning my room—I didn't think it would be an issue.

The call was going well. We'd covered all the technical specs and he seemed ready to move forward when I noticed his expression suddenly change. That's when I realized my virtual background had cut out and he was now staring directly at my unmade bed and greasy take-out containers on my nightstand. His face went from interested to visibly appalled as he took in my chaotic living situation.

I tried to make a joke, telling him the house cleaner wasn't coming until tomorrow, but he just seemed more uneasy. I was embarrassed, so I wrapped up the call and followed up over email with next steps. He didn't respond for 3 days, so I emailed him again. He let me know they'd be going with a competitor instead. It had to be because of the unfortunate background reveal. Thankfully, I now have a 2 bedroom apartment and dedicated office, with a background I'm actually proud to be seen in front of on calls.

Anonymous New York City

GRAPH OF THE WEEK

Source: LinkedIn Poll -- June 2025

WORTH A PEEK

What’s the most unhinged thing you’ve ever seen at a company happy hour / SKO / offsite? Redditors weighed in with their responses, and, well… oh boy. You can read the crazy stories here.

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team,

I sell home appliances at a big box retailer and have built my reputation on helping customers find reliable, affordable options that meet their needs. I consistently hit my sales targets because people trust my recommendations for budget-friendly models that offer genuine value. However, my manager is constantly pressuring me to push premium appliances with higher margins, claiming I'm "leaving money on the table" by not upselling. The problem is, most of my customers are young families, seniors on fixed incomes, or first-time homeowners who genuinely can't afford luxury features they'll never use. When I try to push expensive models, I feel sleazy and my closing rate plummets because customers sense my discomfort. I take pride in being the honest guy who helps people make smart financial decisions, but management sees this as underperformance. Should I compromise my values to hit their margin targets, or is there a way to balance customer advocacy with company expectations?

Ethical in Oregon

Dear Ethical

Trust your instincts. Your customer-first approach builds loyalty and repeat business that benefits everyone long-term. Don't try to push premium products down everyone's throat, but master identifying the 20% of customers who aren't as price-sensitive and can be happily convinced if you properly articulate the value they'd get from spending more on the next tier of products. For truly budget-conscious buyers, respect their constraints while maintaining the honest reputation that makes customers trust you. Good luck!

Quiz Answer: A. The average price for a new car in June 2025 is $48,699 (you can read the source article here)

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Today's email was written by Ken Kupchik, Erica Furgiuele, Steve Rado, and Emily Hill.

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