Hiring a sales representative isn’t just about filling a seat; it’s about hitting revenue targets without blowing your budget. But as soon as you start comparing salaries, commissions, and OTE across regions, your head can start spinning.
Do you pay a mid-level representative in New York $80K base with $30K commission, or hire someone remotely at half the cost while keeping performance incentives intact? How do you structure pay to motivate top performers without overpaying for low performers?
In this blog, we break down sales representative salaries in the US, Canada, and Australia, compare base pay versus commission, and explore how remote hiring can help you get high-performing representatives at a fraction of the cost.
Understanding Sales Representative Salary: Base, Commission & OTE
When you’re budgeting for a sales representative, it’s easy to get tripped up by numbers. There’s the base salary, the commission, bonuses, and the total expected compensation or OTE (On-Target Earnings). Ignore any of these, and you could either overpay or demotivate a top performer.
- Base salary: This is the guaranteed portion of pay, no questions asked. For a representative closing small business deals, the base provides stability during slower months.
- Commission: Paid on performance, usually a percentage of deals closed or revenue generated. For instance, a representative closing a $50,000 client with a 10% commission earns $5,000 on top of their base.
- Bonuses & incentives: Extra payouts for surpassing quotas, bringing in strategic clients, or hitting team-wide goals. These keep representatives motivated beyond just hitting minimum targets.
- On-Target Earnings (OTE): This is the sum of base salary + expected commissions + potential bonuses if sales targets are hit. Think of OTE as the number that tells your representative, “If you do what you’re supposed to, this is your annual pay.” Why OTE matters? Focusing only on base salary can make your offer look low compared to competitors. A clear OTE communicates earning potential and helps align expectations.
- Base vs. Commission balance: Some roles are base-heavy with smaller commissions, which appeals to risk-averse representatives. Others are commission-heavy, which attracts highly motivated performers who thrive on chasing deals.
- Regional variations: Base salaries and OTE can differ dramatically depending on location, cost of living, and industry demand. For example, a tech sales representative in San Francisco will expect a higher base than a similar role in Austin, but the commission structure might be similar.
- Performance metrics impact: Salary isn’t fixed in a vacuum. KPIs like monthly revenue targets, client retention, or new accounts influence commission. Structuring compensation around measurable outcomes keeps representatives focused and accountable.
- Scenario Check: Consider a SaaS startup hiring a mid-level sales representative:
- Base: $60,000/year
- Commission: $20,000/year if quota is met
- OTE: $80,000/year
If the representative exceeds quota by 25%, bonuses could push earnings higher, turning a $60K hire into an $85K top performer, which is motivating for the representative and profitable for the company.
Understanding these components and structuring them thoughtfully sets the foundation for hiring sales representatives who are motivated, accountable, and aligned with your business goals.
US Salaries
The United States has one of the most competitive markets for sales representatives, with pay varying widely depending on experience, industry, and location. Understanding these benchmarks is key when structuring salaries or planning to hire remote talent.
Average Salary Ranges (2025 Estimates)
Role Level | Base Salary | Commission | OTE |
Entry-Level | $45,000 – $55,000 | $15,000 – $20,000 | $60,000 – $75,000 |
Mid-Level | $55,000 – $70,000 | $20,000 – $30,000 | $75,000 – $100,000 |
Senior / Enterprise | $70,000 – $90,000 | $30,000 – $50,000 | $100,000 – $140,000 |
Key Factors Affecting US Sales Salaries
- Industry: Tech and SaaS roles tend to offer the highest OTE, while retail or consumer goods roles may offer lower base salaries but higher volume-based commissions.
- Experience Level: Entry-level representatives usually have lower base salaries but can make up for it with commissions if they hit quotas consistently. Senior representatives in enterprise sales command higher bases and larger commission potential.
Location
- West Coast (CA, WA, OR): Salaries are typically 10–20% above national averages due to the high cost of living.
- East Coast (NY, MA, DC): Competitive pay for tech, finance, and corporate sectors.
- Midwest & South: Lower base salaries but similar commission structures in high-performing teams.
Scenario Example
- A mid-level SaaS sales representative in Austin:
- Base: $60,000
- Commission: $20,000 if quota is met
- OTE: $80,000
If they close an enterprise deal worth $250,000 and earn a 5% commission, that’s an extra $12,500, pushing total earnings to $92,500. This shows how commission-heavy roles can reward high performance.
Tips for US Employers
- Benchmark salaries against industry norms and location to stay competitive.
- Clearly define commission structures and quotas upfront to avoid confusion or demotivation.
- Consider OTE when recruiting, as it communicates the full earning potential, not just base pay.
US sales representative salaries vary widely, but understanding the balance between base, commission, and OTE helps attract top talent while keeping pay competitive and sustainable.
Canada Salaries
Sales representative salaries in Canada are generally slightly lower than in the US, but the commission and OTE structures are similar. Understanding regional differences and industry trends is crucial when planning your sales team budget.
Average Salary Ranges (CAD 2025 Estimates)
Role Level | Base Salary | Commission | OTE |
Entry-Level | $45,000 – $55,000 | $10,000 – $15,000 | $55,000 – $70,000 |
Mid-Level | $55,000 – $70,000 | $15,000 – $25,000 | $70,000 – $95,000 |
Senior / Enterprise | $70,000 – $85,000 | $25,000 – $40,000 | $95,000 – $125,000 |
Key Factors Affecting Canadian Salaries
- Location Matters
- Toronto & Vancouver: Higher salaries due to cost of living and concentration of corporate HQs.
- Other provinces (Alberta, Quebec, etc.): Slightly lower base salaries but competitive OTE for high performers.
- Industry Differences: Tech, SaaS, and financial services typically pay higher OTE than retail or small B2B sectors.
- Experience & Role Level
- Entry-level representatives may earn modest bases but can increase total earnings through commission.
- Senior representatives in enterprise sales often have higher bases and more lucrative commission structures.
Scenario Example
- A mid-level SaaS sales representative in Toronto:
- Base: CAD 65,000
- Commission: CAD 20,000 if quota is met
- OTE: CAD 85,000
If they exceed quota and close a large client deal worth CAD 200,000 with a 5% commission, that adds CAD 10,000, pushing total earnings to CAD 95,000. This demonstrates how commission-based pay rewards high performance and keeps representatives motivated.
Tips for Canadian Employers
- Benchmark salaries by city to attract and retain top talent.
- Clearly communicate quota expectations and OTE to manage candidate expectations.
- Consider remote options to access high-quality talent in lower-cost regions while maintaining competitive compensation.
Canadian sales representative salaries are competitive, especially in major cities. Structuring pay with a clear base, commission, and OTE allows you to motivate performance while staying within budget.
Australia Salaries
Sales representative salaries in Australia are competitive, particularly in major cities like Sydney and Melbourne, but they can vary significantly depending on industry, experience, and company size. Understanding these benchmarks is essential for budgeting and structuring OTE effectively.
Average Salary Ranges (AUD 2025 Estimates)
Role Level | Base Salary | Commission | OTE |
Entry-Level | $55,000 – $65,000 | $10,000 – $15,000 | $65,000 – $80,000 |
Mid-Level | $65,000 – $80,000 | $15,000 – $25,000 | $80,000 – $105,000 |
Senior / Enterprise | $80,000 – $100,000 | $25,000 – $40,000 | $105,000 – $140,000 |
Key Factors Affecting Australian Salaries:
- City vs. Regional Differences
- Sydney & Melbourne: Highest salaries due to corporate headquarters and higher living costs.
- Other cities (Brisbane, Adelaide, Perth): Slightly lower base salaries but competitive OTE for top performers.
- Industry Influence
- Tech, SaaS, and enterprise sales roles generally offer higher OTE.
- Retail and small business sales positions tend to have lower bases but can include generous commissions for high-volume deals.
- Experience & Role Level
- Entry-level representatives rely more on base pay while building skills and client pipelines.
- Senior representatives in enterprise sales have higher bases and commissions, rewarding experience and complex deal-making.
Scenario Example:
- A mid-level SaaS sales representative in Sydney:
- Base: AUD 70,000
- Commission: AUD 20,000 if quota is met
- OTE: AUD 90,000
If the representative closes a large enterprise deal worth AUD 300,000 at a 5% commission, that’s an additional AUD 15,000, raising total earnings to AUD 105,000. This demonstrates how performance-based pay can significantly impact earnings.
Tips for Australian Employers:
- Benchmark salaries by city and industry to stay competitive.
- Clearly define quotas and commission structures to attract motivated representatives.
- Consider remote hiring options to access top talent in lower-cost regions without sacrificing quality.
Australian sales representative salaries are competitive, with major city hubs commanding higher pay. A well-structured combination of base salary, commission, and OTE ensures motivation, performance, and cost efficiency.
Remote vs. Local Cost
Hiring sales representatives locally in the US, Canada, or Australia can get expensive fast, especially when you factor in base salaries, commissions, benefits, and cost-of-living adjustments. Remote hiring, particularly offshore, presents an opportunity to access high-performing talent at a fraction of the cost without sacrificing quality.
Here’s how the numbers often break down:
Location | Base Salary | Commission | OTE | Notes |
US Local (West Coast) | $70,000 | $30,000 | $100,000 | High cost of living |
US Remote (Philippines) | $15,000 | $10,000 | $25,000 | High skill, lower labor cost |
Canada Local (Toronto) | $65,000 | $25,000 | $90,000 | Competitive market |
Canada Remote (Philippines) | $15,000 | $10,000 | $25,000 | Cost arbitrage opportunity |
Australia Local (Sydney) | $90,000 | $30,000 | $120,000 | High living costs |
Australia Remote (Philippines) | $15,000 | $10,000 | $25,000 | Remote cost efficiency |
Key Takeaways
- Substantial savings: Companies can save 70–80% on compensation costs by hiring remote talent in lower-cost regions while still offering competitive pay.
- Performance-based structure: Commission and OTE should be structured to keep remote representatives motivated. A slightly lower base with performance-driven commissions ensures accountability and alignment with revenue goals.
- Access to global talent: Remote hiring opens the door to experienced sales professionals who may not be available locally. You can tap into markets where highly skilled representatives exist, but the cost of living is lower.
- Operational efficiency: Platforms like CrewBloom pre-vet remote sales representatives, ensuring you hire top-tier talent without the headaches of traditional international recruiting.
Scenario Example
Imagine a SaaS company in Sydney wants to hire two mid-level sales representatives:
- Local hires: Base AUD 70,000 + Commission AUD 20,000 each → OTE AUD 90,000 per representative → Total: AUD 180,000
- Remote hires (Philippines): Base AUD 20,000 + Commission AUD 10,000 each → OTE AUD 30,000 per representative → Total: AUD 60,000
That’s $120,000 in savings annually, funds that can be reinvested into marketing, product development, or expanding your remote team further.
In Closing
Understanding sales representative salary is more than comparing numbers; it’s about structuring pay to motivate performance, attract top talent, and optimize costs. Whether you’re hiring locally in the US, Canada, or Australia, or tapping into high-performing remote talent, balancing base salary, commission, and OTE is key to building a successful sales team.
Remote hiring, in particular, allows companies to access skilled representatives at a fraction of the cost while maintaining motivation and accountability. With the right structure, tools, and support, you can scale your sales team efficiently without compromising quality.
FAQs
What is the average sales representative salary in the US?
Base salaries range from $45,000 to $90,000, depending on experience, with OTE between $60,000 and $140,000, including commission.
How does commission affect total earnings?
Commission is performance-based pay. It’s added to base salary, creating On-Target Earnings (OTE), which reflects expected annual pay if sales targets are met.
How do Canadian sales representative salaries compare to those in the US?
Canadian salaries are slightly lower. Entry-level representatives earn CAD 45,000–55,000 base, with OTE ranging from CAD 55,000–70,000, depending on city and industry.
What is the typical sales representative salary in Australia?
Base pay ranges from AUD 55,000–100,000 depending on experience and city, with OTE reaching AUD 140,000 for senior enterprise roles.
