Sales manager salary trends in 2023 are going to be defined increasingly by experience as the tech industry continues to refine how they hire in a post-new normal world. The growth of the average rate remained rather stagnant from 2021, however, we also saw a higher potential range of on-track earnings (OTE) for more experienced SMs this year. For more information on the latest rates for sales, marketing and customer success roles in the technology sector, read our Compensation Guide for 2023 here.
In this article, we’ll explore the latest salary trends for sales manager roles in tech, including SDR managers, senior sales managers and other sales leadership roles:
What are Sales Managers and SDR Managers?
As the tech sales sector continues to mature, companies are increasingly looking for qualified sales leadership to help drive growth and success. Sales leaders play a critical role in managing and mentoring teams of account executives (AEs), implementing new strategies and developing relationships with key clients.
Sales managers are integral to making sure AE teams are hitting their goals and maintaining a healthy pipeline, as are SDR managers to junior sales development representatives when it comes to prospecting. The best candidate for either role will have a proven track record in technology sales and a deep understanding of the selling process unique to the industry and its sub-sectors.
Sales Manager Salary Trends
The average salary range for a first-time tech sales manager is $120,000 – $160,000 per year as of 2023. However, this number can vary based on experience, company size, and even location in some cases. For example, an SM with more than three years of experience will see $140,000 – $200,000 in almost any tech hub region.
Other Compensation Trends for Sales Leadership
One trend that has emerged in recent years is the use of equity as a form of compensation for sales managers. This is particularly common in tech startups, where the potential for significant growth and financial success is high but salary budgets need to be tightened in earlier funding rounds. By offering equity, companies are able to attract top talent and align the interests of the new hire with those of the company while maintaining the incoming revenue they need to qualify for the next round.
Another trend that is becoming increasingly popular is the use of performance-based incentives. This means that a sales manager’s compensation is tied to their team’s ability to achieve specific sales targets or milestones quarter after quarter. This approach can be particularly effective in motivating managers to perform at their best and drive business growth through strategic alignment.
SDR Manager Salary
SDR managers, who lead teams of SDRs, saw minor salary increases on average from 2021 to 2022, although Midwestern cities like Chicago finally caught up to the range of bigger hubs like San Francisco. The rate in most time zones was $100,000 – $140,000 for less than three years of experience, except for New York where base started at $110,000. Those with more than three years of experience go up to $140,000 – $180,000. As with other sales leadership roles, SDR managers may receive additional benefits, including bonuses and stock options.
Senior Sales Manager
Senior sales managers are experienced sales leaders with a proven track record of success. These leaders typically have 10 or more years of experience in tech sales and are responsible for managing large sales teams, developing sales strategies, and driving revenue growth. The average salary for a senior sales manager in the tech industry is $140,000 – $200,000 per year with total potential on-track earnings of $280,000 – $400,000, but can vary based on experience and location.
Because of the need for more experience and skill with this role, many companies will need to turn to outsourcing to find the right candidates for sales manager positions. This is where a recruiting agency will come in – they will leverage its knowledge of the role, industry and market to source a candidate that fits the requirements best, usually on a fee basis. An outsourced recruitment firm is a good option when an open job needs to be filled fast.
Hiring platforms are solutions such as LinkedIn, Glassdoor and Indeed that feature a wide network of profiles and resume information for job seekers. They are increasingly following a social media-type of approach to connecting professionals and companies in various fields, and are useful for combing through a broad group of candidates, though historically have not been great for finding anyone quickly..
Tech Sales Manager Salaries in 2023
Though base salaries for many sales leadership positions sort of froze in the second half of 2022, we saw total earning potential for experienced SDR and sales managers slowly creep up to twice the rate in some cases. Seasoned sales leaders are vital for driving AEs and SDRs towards success, and helping teams shift gears when the market changes. This will heavily impact compensation rates throughout the rest of 2023 for job seekers and employers, and both will have to take note of when the industry shifts again.
Betts Connect Can Help
Recruiting agencies may not be the option you need right now, and most hiring platforms make it tough to find who you actually need right now – but Betts Connect can help. After more than a decade of building relationships with the world’s most innovative companies and professionals, you can now access this network with Connect. As the only go-to-market recruiting platform built by recruiters and powered by recruiters, Connect enables you to search through a network of vetted go-to-market professionals actively looking for their next opportunity, and reduce time to hire, save money, and spend more time on your growth strategy. Plus, our clients see ROI in less than 3 months.
In addition, our experienced teams always know the most up to date information on compensation and the working arrangements that top professionals are seeking from a future employer. If you have any questions, please reach out. We look forward to speaking with you!
Contact us here for a demo of Connect and learn more about this recruiting platform.