Two technical sales jobs with the same title can differ by a third in total pay. The reason is the structure: how much is fixed, what the variable part depends on, and which benefits replace salary. Understanding that structure matters more in industrial sales than in most professions, because sales cycles are long and results arrive late.
Base salary
In technical sales the base salary carries more weight than in transactional sales. A project for a recycling plant or a machine tool can take eighteen months from first contact to order – nobody can live on commission alone during that time. Typical splits are 70–85 % fixed and 15–30 % variable. The longer the sales cycle, the higher the fixed share.
Base salary is driven by four things: country, industry, deal size and territory. Capital equipment and project sales pay more than component and consumables sales; responsibility for several countries pays more than a regional territory.
Variable pay: the common models
- Revenue or order-intake bonus. The classic model. Simple, but it rewards volume, not margin.
- Margin-based bonus. Increasingly common with manufacturers. It aligns your interests with the company's – provided you have any influence on price.
- Target achievement with thresholds. Nothing below 80 %, linear up to 100 %, accelerators above. Check whether the variable part is capped.
- Team or company component. Sensible where inside sales, application engineering and field sales win projects together; frustrating where you cannot influence the result.
- Commission only. The model for independent commercial agents – not an employment contract, different legal footing, different risk.
Ask how targets are set and how often they were reached in the past three years. A variable share that pays out at 60 % on average is a smaller salary, not an incentive.
On-target earnings
On-target earnings (OTE) are base plus variable at 100 % target achievement. Job ads in the UK and Ireland often quote OTE; ads in Germany, Austria and Switzerland usually quote the base or nothing at all. When you compare offers, always compare like with like.
The company car
For field-based roles in Germany, Austria, Switzerland and the Benelux countries, a company car with private use is standard and worth several thousand euros a year. Look at the vehicle class, the fuel or charging arrangement, and the tax consequences in your country. In markets where the car is less common, a car allowance takes its place.
What else belongs in the package
Pension contributions, home-office equipment, training budgets and – in leadership roles – long-term incentives. In international roles, check who pays for language training and relocation.
Checklist before you sign
- What is the fixed share, and what were actual payouts on the variable part in recent years?
- Is the variable part based on order intake, revenue or margin – and can you influence it?
- Are there thresholds, caps or clawbacks?
- How is the territory defined, and who owns existing key accounts?
- What happens to open projects and commission if you leave?
A well-designed package lets you survive a slow year and rewards you properly in a strong one. If it only does one of the two, negotiate.
