Operations

What Is an Example of Sales Compensation?

Feb 06 2026

Sales Compensation Explained

Sales compensation is one of those topics everyone thinks they understand — until it’s time to explain how someone actually gets paid.

A Practical Guide With Real-World Sales Compensation Plan Examples

What Is an Example of Sales Compensation?

Ask a simple question like, “What’s an example of sales compensation?” and you’ll hear wildly different answers depending on who you ask: commission-only plans, base plus bonus, quotas, accelerators, team payouts, or something in between. The truth is, sales compensation isn’t one thing. It’s a set of structures designed to reward specific behaviors, and those structures vary dramatically by role.

A sales compensation plan might pay an Account Executive a percentage of closed revenue. It might reward a BDR for booking qualified meetings. It might tie a Customer Success Manager’s bonus to retention instead of new sales. Each of these is a valid example — but only when it matches how the role actually creates value.

This guide walks through real-world examples of sales compensation across common revenue roles, from Enterprise Account Executives to Customer Success and Professional Services. Instead of abstract theory, you’ll see concrete pay structures, typical metrics, and why each approach is used — so you can understand not just what a sales compensation plan looks like, but why it’s designed that way.

An example of sales compensation is a pay structure that combines a base salary with variable pay tied to performance, such as commissions or bonuses.

Example:
A Mid-Market Account Executive earns a $95,000 base salary plus $65,000 in commission for hitting a $900,000 annual revenue quota, for a total on-target earnings (OTE) of $160,000.

Sales compensation plans vary by role, but they all use measurable outcomes — revenue, pipeline, retention, or activity — to align pay with business goals.

This guide breaks down sales compensation examples across common revenue roles, including Account Executives, BDRs, Sales Engineers, Customer Success, and Professional Services.

What Are the Main Components of Sales Compensation?

Most sales compensation plans are built from the same core components.

Base Salary

Fixed pay that provides income stability and reflects the role’s responsibility and risk.

Variable Compensation (Commission or Bonus)

Performance-based pay earned by hitting targets like:

  • Revenue (ARR, bookings)
  • Pipeline
  • Retention
  • Activity metrics

On-Target Earnings (OTE)

The total amount a salesperson earns when they hit 100% of their goal.

OTE = Base Salary + Variable Compensation

Quota or Target

The performance goal required to earn full variable pay.

Accelerators

Higher commission rates earned after exceeding quota.

Sales Compensation Examples by Role

Enterprise Account Executive (Enterprise AE)

Example of Enterprise AE sales compensation:

  • Base salary: $150,000
  • Variable compensation: $150,000
  • OTE: $300,000
  • Quota: $2,000,000 ARR
  • Commission:
    • 7% up to quota
    • 12% above quota

Why this works:
Enterprise AEs manage long sales cycles and large deals, so compensation emphasizes upside for closing high-value contracts.

Mid-Market Account Executive (Mid-Market AE)

Example of Mid-Market AE sales compensation:

  • Base salary: $95,000
  • Variable compensation: $65,000
  • OTE: $160,000
  • Quota: $900,000 ARR
  • Commission:
    • 8% up to quota
    • 10% above quota

Why this works:
Mid-market roles focus on volume and velocity, with faster payout cycles and simpler commission rules.

Inbound BDR (Business Development Representative)

Example of inbound BDR sales compensation:

  • Base salary: $70,000
  • Variable compensation: $30,000
  • OTE: $100,000
  • Metrics:
    • $150 per sales-qualified lead (SQL)
    • $300 bonus for SQLs that convert to opportunities

Why this works:
Inbound BDRs convert existing demand, so compensation rewards lead quality and follow-through.

Outbound BDR

Example of outbound BDR sales compensation:

  • Base salary: $65,000
  • Variable compensation: $45,000
  • OTE: $110,000
  • Metrics:
    • $200 per meeting held
    • $500 per qualified opportunity sourced

Why this works:
Outbound roles require more effort and rejection tolerance, so variable pay is higher.

Sales Engineer (SE)

Example of Sales Engineer compensation:

  • Base salary: $140,000
  • Variable compensation: $40,000
  • OTE: $180,000
  • Variable tied to:
    • Team quota attainment
    • Deal support participation

Why this works:
SEs influence deals but don’t own revenue, so team-based incentives reduce internal friction.

Professional Services (PS)

Example of Professional Services compensation:

  • Base salary: $120,000
  • Variable compensation: $25,000
  • Bonus based on:
    • Billable utilization
    • On-time project delivery
    • Customer satisfaction

Why this works:
PS compensation balances delivery quality with financial performance.

Customer Success Manager (CSM)

Example of Customer Success compensation:

  • Base salary: $105,000
  • Variable compensation: $35,000
  • OTE: $140,000
  • Metrics:
    • Gross retention
    • Net revenue retention
    • Expansion support

Why this works:
CSMs are incentivized to retain and grow customer value, not just sell.

Common Types of Sales Compensation Plans

From an SEO perspective, these are the most searched plan types:

  • Base + commission
  • Quota-based commission
  • Bonus-based sales compensation
  • Team-based compensation plans
  • Activity-based compensation plans

Most companies combine multiple types depending on role.

Why Clear Sales Compensation Examples Matter

Sales compensation plans fail when:

  • Reps can’t tell how they’re paid
  • Calculations are hard to verify
  • Multiple roles are paid on the same revenue without clarity

The most effective plans provide clear explanations of how commissions are calculated, supported by data and visible logic.

Final Takeaway

A sales compensation example is any structured plan that ties pay to performance — whether that performance is revenue, pipeline, retention, or delivery.

The best plans are:

  • Simple to understand
  • Aligned to role ownership
  • Easy to explain and audit

As sales organizations scale, clarity in compensation becomes just as important as the payout itself.

Sales Compensation Explained

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Gabe Salzer

Revenue Operations

Strategy - HIGHTOUCH

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EasyComp is so intuitive that our sales team needed almost no training to get started. Now, our account executives have real-time payout visibility, with clear explanations that eliminate back-and-forth with operations, allowing them to stay focused on closing deals.

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