The Cost of Hiring Sales Reps

Are you frustrated by a lack of sales? As a sales manager, executives expect your team to deliver top results for your company. You may have realized you must shake things up and find highly motivated new sales talent. What’s more, you need a solution fast.

What are the specific factors, costs, and considerations in hiring sales reps? Keep reading for insights into salary ranges, commission structures, training expenses, overhead costs, and other financial considerations to remember when recruiting sales professionals for your team.

Our CulverCareers professionals are award-winning marketing and sales recruiters who can advise you on hiring sales representatives and help you build your elite sales team.   

How Much Do Sales Reps Cost?

Recruiting sales representatives is costly, but consider the long-term costs to your organization if you continue chugging along with an underperforming team. A study of sales metrics by the DePaul University Center for Sales Leadership found that the average cost of hiring and training a new sales rep was $114,957. These findings are from 2012 and were not recently updated. Estimates put today’s cost at more than $150,000.   

Sales Rep Salary Ranges

According to ZipRecruiter, the average sales rep’s annual salary is $76,681, ranging from $23,000 to $141,500. This salary range varies widely by location. In New York City, the average salary for a sales rep is $84,627, and in Boise, Idaho, it’s $72,982.

What is a Typical Sales Rep Commission? 

Most companies pay sales representatives a base salary and a sales commission. The average commission rate is 20% to 30% of gross margins, although this varies by the pay structure. Other factors play a role, such as industry, the employee’s role, and their experience. The base salary plus commission payment gives reps a safety net while encouraging workers to bring in sales. However, this mixed payout can complicate accounting. A company with low commission rates may have trouble attracting and retaining top-quality salespeople. 

Training Expenses

There are many different sales rep training programs, both in-person and online, with a wide range of costs. That’s why the average cost per training program can range from $400 to $3,000. Training programs can cover various topics, including specific product knowledge, sales processes, sales methods and techniques, quotas and metrics, messaging and positioning, technology and tools, cross-team collaboration, and role-playing scenarios.

Overhead Costs

Also known as office overhead, this encompasses administrative costs, office supplies, and office rent. Determine how these items support the sales representative’s efforts if you’re trying to calculate a percentage.

Additional Financial Considerations

In addition to the sales representative expenses already mentioned, there are costs for promotional materials, travel expenses (airfare, hotel, vehicle costs, meals), on-site client visits, and trade shows where the sales professional represents the company and promotes its products and services to potential customers. 

How much does it cost to hire a sales rep? A sales professional’s initial recruitment and onboarding is a small fraction of the ongoing costs to support this vital team member. A top-tier sales representative’s value to your company’s long-term success is priceless.

What Should You Look for in a Top Sales Rep?

Before you begin the recruitment process, define your ideal sales rep candidate. Determine the required skills, knowledge, and personal traits for the best fit for your organization and target customers. When hiring sales reps, there are many desirable skills and qualities to remember.

Key capabilities for today’s sales representative are:

• Exceptional communication skills (written and verbal)
• Familiar with the sales process
• Comfortable using technology
• Understands sales metrics and data

As for essential personality traits, a high-performing sales rep must be:

• Self-motivated
• Success driven
• Willing to learn, coachable
• Curious
• Adaptable and resilient
• Organized

As you’re hiring sales reps, you will be competing with other companies to attract the best candidates, so keep that in mind as you plan your search. What does your organization offer that sets it apart from your competitors? Do you have a robust and supportive company culture and attractive compensation package? Development and training programs will help lure top sales talent, as will a generous commission rate. These are additional costs for your company, but they will pay off tremendously over time.  

How To Quickly and Easily Hire a High-Performing Sales Representative 

Recruiting sales professionals is a challenging task. It involves strategic planning, formulating a job description, and knowing where to post it. And what happens when the resumes begin to pour in? Most busy sales managers and business owners don’t have the time to devote to this vital process, yet strategic sales hiring is critical for your business. 

At CulverCareers, we are experts at recruiting sales professionals. We have an extensive nationwide network of pre-vetted sales professionals, targeting not just active job seekers but also ‘passive candidates’ already working in your industry and may be open to a new opportunity. We also advise our clients on attracting the best sales talent for their organization. Discover our award-winning sales recruitment services.  

Interested in finding the right sales rep for your team? Contact us today and streamline your hiring process for top sales talent.