You Can Make Incredible Sums Of Money In Enterprise Software Sales
We've been closely watching Oracle President Mark Hurd's attempt to overhaul the company's sales force.
Hurd's plan is risky for Oracle because the company has always been known to be one of the best-paying tech companies for sales jobs.
Skip directly to a list of software sales salaries around the country >
So, just how much money can someone make selling enterprise software?
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in.Top performers get up to $400,000 a year, year after year, our sources say. (Bear in mind that the average salary in the U.S. is about $46,000, according to the Bureau of Labor Statistics.)
"On average, an Oracle sales rep has a base of $110,000 and earns $250,000 a year, but there will be people at Oracle this year who earn over $500,000," says headhunter Paul McEwan, a partner for technical sales recruiter, Richard, Wayne and Roberts.
Overall, at top-paying enterprise software companies like Oracle, SAP, HP, Microsoft, and IBM, the "top 20 percenters" — the 20% of salespeople in the company who consistently sell the most — make $250,000 to $350,000 a year, headhunters and enterprise sales people tell us.
The top 10 percenters "make from high the $200s to low the $400s, and are cranking in that zone, year after year," McEwan says.
In a really good year, a top salesperson at these companies can even earn $1 million, says Eliot Burdett, CEO of headhunting firm Peak Sales Recruiting.
But it's tricky for them. Salespeople are paid a base salary plus commission, and the commission structure can be complicated, Burdett says. An enterprise software salesperson will have a quota, perhaps $5 million.
Hit the quota and it's "cha-ching!"
Miss it and risk losing your job.
Salespeople who regularly exceed their quota will find that the company raises it. They should get paid more, but they'll also have more pressure to perform.
One salesperson who has worked for several of the top companies mentioned here, but who requested anonymity, told Business Insider:
"My base has run from $100,000 to $134,000 and commissions for sales on target are typically $200,00 to $300,000 with $240,000 or $250,000 being most common. The last two years I was in the low to mid $400,000s."
This person also told us that while Oracle, SAP, and EMC are known for their high pay scale, "the best pay is at mid to large independents like Informatica, Tibco, etc. They have more aggressive sales plans."
Software-as-a-service cloud-app vendors like Workday and Salesforce are also known in the Valley for paying very well, where Microsoft and IBM have a mixed reputation. They have complicated commission schemes, but giant sales support systems that help sales folks earn their quotas, they've told us.
Software startups tend to pay less (not surprisingly) and frequently offer bonuses of stock against an eventual IPO. Top salespeople work for startups for two reasons: 1) they like the culture or the company or 2) they are proving themselves so that an Oracle or Salesforce will one day hire them, says Burdett.
The best salespeople are folks who are naturally driven and competitive, but also extremely helpful. They want to solve their customer's problems, not just sell stuff, says McEwan.
"It's not their resume, it's their presence. When you meet a star salesperson, people will ask, did you meet her? She's awesome," he describes.
But the pay is high for a reason. This isn't an easy career, warns Burdett.
"It's a tough life. Some of these folks are on the road all the time. That's tough to do if you have a family. It's a high pressure job where you are only as good as your last quarter or fiscal year. There's lots of pressure keep performing or running on that treadmill. If you take a breather could get thrown off for good," he says.
Washington: Highest ever income, $300,000 - $400,000
The "vertical industry" experience is important. That indicates which industries a salesperson knows, has contacts in.
Outside Rep/Field Sales, Washington
Previous Employer(s): Oracle, BEA, IBM
Product Expertise: Enterprise Application Integration/B2B Integration, Internet Infrastructure Software, Business Intelligence, Database & File Management Software
Vertical Expertise: Health care & Medical, Industrial Manufacturing
Largest Deal Ever Closed: Greater than $2.0 Million
Highest Ever W2: $300,000 - $400,000
Average W2 Last Four Years: $250,000 - $350,000
North Carolina: Highest ever income, $300,000 - $400,000
Enterprise resource planning software (ERP) and Supply Chain Management (SCM) are big, expensive investments, that yield big commission checks.
Outside Rep/Field Sales, North Carolina
Previous Employer(s): SAP, Siebel, Oracle
Product Expertise: Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Vertical Specific Solutions, Business Intelligence, Customer Relationship Management
Vertical Expertise: Industrial Manufacturing, Capital Equipment, Consumer Goods
Largest Deal Ever Closed: Greater than $2.0 Million
Highest Ever W2: $300,000 - $400,000
Average W2 Last Four Years: $250,000 - $350,000
New York: Highest ever income, $300,000 - $400,000
A sales person that isn't routinely making over $150,000 a year won't last long in this business, sources say.
Outside Rep/Field Sales, New York
Previous Employer(s): TIBCO, Information Builders, Computer Associates
Product Expertise: Enterprise Application Integration/B2B Integration, Internet Infrastructure Software, Systems & Network Management, Business Intelligence
Vertical Expertise: Mid-Market, Pharmaceuticals & Biotechnology, Financial Services
Largest Deal Ever Closed: Greater than $2.0 Million
Highest Ever W2: $300,000 - $400,000
Average W2 Last Four Years: $150,000 - $250,000
Southern California: Highest ever income, $400,000 - $500,000
"Most compensation plans are stated in terms of 'total target income,' a mix of their base and the commissions they earn when they achieve their quote," a source tells us.
Outside Rep/Field Sales, Southern California
Previous Employer(s): Oracle
Product Expertise: CAD/CAM Software, Business Intelligence
Vertical Expertise: Financial Services, Aerospace
Largest Deal Ever Closed: Greater than $2.0 Million
Highest Ever W2: $400,000 - $500,000
Average W2 Last Four Years: $250,000 - $350,000
New Jersey: Highest ever income, $400,000 - $500,000
This sales person has experience in both enterprise software and hardware. But margins are thinner on hardware, as are commissions, sources say.
Outside Rep/Field Sales, New Jersey
Previous Employer(s): Business Objects, Informix
Product Expertise: Content Management Software, Business Intelligence, Customer Relationship Management, Database & File Management Software
Vertical Expertise: Telecommunications, Computer Hardware, Computer Software
Largest Deal Ever Closed: $750,000 - $1m
Highest Ever W2: $400,000 - $500,000
Average W2 Last Four Years: $250,000 - $350,000
Northern California: Highest ever income, $400,000 - $500,000
Some sales people work with resellers instead of enterprise customers. Their job is to help a company's partners sell more.
Channel Sales, Northern California
Previous Employer(s): IBM, Oracle, Informix
Product Expertise: Enterprise Resource Planning (ERP), Business Intelligence, Customer Relationship Management, Database & File Management Software
Vertical Expertise: Computer Hardware, Computer Software, Financial Services
Largest Deal Ever Closed: Greater than $2.0 Million
Highest Ever W2: $400,000 - $500,000
Average W2 Last Four Years: $250,000 - $350,000
Illinois: Highest ever income, $400,000 - $500,000
At some enterprise companies salespeople may have quotas on both hardware and software sales, which can add pressure to the job.
Sales Management/Director, Illinois
Previous Employer(s): Tibco, Compuware, IBM
Product Expertise: Enterprise Application Integration, Enterprise Resource Planning (ERP), CASE Tools & Application Development Tools
Vertical Expertise: Automotive/Aerospace, Computer Hardware, Computer Software
Management Experience - Revenue: $50m - $100m
Highest Ever W2: $400,000 - $500,000
Average W2 Last Four Years: $250,000 - $350,000
Maryland: Highest ever income, over $500,000
A sales team leader can regularly hit $500,000 a year, although that wouldn't happen every year.
Sales Management/Director, Maryland
Previous Employer(s): Peregrine, IBM
Product Expertise: Services, ASP, Wireless/Connectivity Software & Services, Customer Relationship Management/Sales Force Automation
Vertical Expertise: Government, Computer Hardware, Computer Software
Management Experience - Revenue: $100m - $250m
Highest Ever W2: Over $500,000
Average W2 Last Four Years: $250,000 - $350,000
Arizona: Highest ever income, over $500,000
A sales person at the vice president level could/should be a 10 percenter and earning double the typical rep.
VP of Sales, Arizona
Previous Employer(s): SAP, Oracle
Product Expertise: Supply Chain Management (SCM), Enterprise Resource Planning (ERP)
Vertical Expertise: Consumer Goods
Management Experience - Revenue: $50m - $100m
Highest Ever W2: Over $500,000
Average W2 Last Four Years: $400,000
Georgia: Highest ever income, over $500,000
Government experience can be valuable as selling to the government brings with it a complicated set of rules.
Outside Rep/Field Sales, Georgia
Previous Employer(s): Oracle, Tivoli, SUN Microsystems
Product Expertise: Enterprise Application Integration/B2B Integration, Enterprise Resource Planning (ERP), Systems & Network Management
Vertical Expertise: Telecommunications, Government - DOD/Federal
Largest Deal Ever Closed: Greater than $2.0 Million
Highest Ever W2: Over $500,000
Average W2 Last Four Years: $250,000 - $350,000
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