Currently in the UK, according to market research, the average SaaS sales salary can vary between £33,000 to £220,000 based on factors like company size, job role, etc. In this article, I explain everything you need to know about pricing salary and what you can expect to pay.
How Much Do SaaS Sales Reps Earn in the UK?
The most recent median annual salary for sales reps in the UK is around £39,000. This figure is based on all years of experience in SaaS companies and includes base pay and average additional pay. Of course, compensation will vary based on experience.Entry-Level Sales Reps
- Average salary: £39,000 per year according to Glassdoor.
- Salary range: £18,000 – £33,000.
- Some job opportunities on websites like Reed offer a £25,000 – £27,000 base salary with an additional £15,000 OTE (on-target earnings).
Mid-Level Sales Professionals
Meanwhile, mid-level sales professionals experience variations in different locations in the UK. These roles include titles like Account Executives and Account Managers.- According to research, the average salary outside London is £60,000
- Meanwhile, the average salary in London is £75,000 according to ITJobsWatch.
- Mid-Market Account Executives experience an average base salary of £62,949 and an average OTE of £116,214
Senior-Level Sales Professionals
Senior and top-performing SaaS sales professionals can earn significantly more. These roles lead the sales team, manage strategy and are wholly responsible for the earnings of the department.- According to Carter Murray, base salaries for Sales Directors range from £115,000 to £180,000, with OTEs reaching between £140,000 and £280,000
- Some companies offer Sales Director positions with base salaries reaching £200,000 and OTEs up to £260,000. They will also offer additional benefits like car allowances and equity
Base Salary vs. Commission – What’s the Right Balance?
In SaaS sales, compensation typically includes a base salary plus commission, creating incentives that compensate for performance and boost company growth. Standard splits often range from a 50:50 ratio for aggressive, sales-driven startups to a 70:30 ratio for mature companies prioritising stability. For startups, higher commissions or equity incentives may attract motivated, entrepreneurial sales talent. Established companies might prefer more balanced structures that reward consistency and long-term customer relationships. As an employer, the key is to align compensation structures with the outcomes you want to drive. Whether that’s aggressive customer acquisition, higher retention, or stable revenue growth. Emma Dahl, a tech sales professional and content creator, explains in her TikTok video below that generally your base salary and commission is usually a 50:50 split.@saasyemma Enterprise sales compensation 💰#sales #selling #seller #salesrole #salestips #compensation #salescompensation #money #moneytips #job #jobtips #hiring #interview #saas #software ♬ original sound – Emma Dahl
SaaS Sales Salary UK Breakdown by Role
SaaS sales roles in the UK offer competitive compensation packages that vary based on experience, performance and seniority. To make things easier for employers, I broke down salary ranges and additional compensation for a few key SaaS sales positions:Sales Development Representatives (SDRs)
- Average base salary: £30,701 per year
- Salary range: £22,000 to £48,000 per year
- Entry-level positions: £25,000 base salary with £14,000 OTE, for a total of £39,000 per year.
Account Executives (AEs)
- Average total compensation: £56,000 per year
- Base salary range: £26,000 to £52,000 per year
- Average base salary: £37,000 per year
Sales Leaders (Managers and Directors)
- Sales Directors (UK SaaS): £115,000 to £180,000 base salary
- Total compensation (OTE): £140,000 to £280,000 per year
Additional Compensation
Additional compensation across all roles may include any or a selection of the following:- Uncapped commission structures
- Performance bonuses
- Equity or stock options (especially for senior roles)
- Car allowances or benefits
- Health insurance and other standard benefits
What is a Typical SaaS Sales Commission?
Typically, SaaS sales roles offer a base salary paired with commission. Commission structures generally range from 5% to 20% of the annual contract value, varying by company size, role and product complexity. Small and early-stage startups will offer higher commission percentages to attract higher levels of talent. Meanwhile, established SaaS companies might offer slightly lower percentages with higher base salaries and clearly defined bonus structures. Commonly, commissions increase with sales volume and renewal rates. Specialised markets like Fintech and HealthTech often have larger deal sizes, which may increase overall earnings. In a recent Reddit thread on UK sales commissions, several commenters mentioned earning 10-15% on annual contract value, with some startups pushing higher to offset lower base salaries. Commission structures really vary, but the sweet spot often depends on deal size, industry and how mature the company is.ÂUK Sales Commissions by insales
Factors That Affect SaaS Sales Salaries
SaaS sales salaries can significantly vary based on various factors such as the size and growth stage of the company, specific industry niches and geographic location. Understanding these differences is important for employers aiming to attract and retain top talent.Company Size and Funding Stage
- Startups (Seed, Series A/B): Typically offer lower base salaries. They may compensate with appealing equity packages.
- Established SaaS Companies: They often provide higher base salaries, structured bonuses and comprehensive benefits packages to attract experienced candidates.
SaaS Tech Sales Salary
- Fintech: Generally offers the highest salaries, reflecting the industry’s rapid growth, regulatory complexity and strong funding.
- Healthtech and Martech: Competitive but slightly lower than fintech; compensation is influenced by regulatory complexity and market maturity.
Geographical Differences
- London: Commands premium salaries due to higher living costs, competition and concentration of the talent pool.
- Other UK Cities (Manchester, Leeds, Edinburgh): Salaries can be 10-20% lower, reflecting regional cost-of-living differences, though remote roles are narrowing this gap.
How to Set Competitive Compensation for SaaS Sales Teams
Effective compensation packages help SaaS companies attract, retain and motivate exceptional talent. Here are best practices and practical tips to design your compensation strategy:Best Practices for Salary and Commission Structures
- Balance Base and Commission: Aim for a 50%-70% base salary with a 30%-50% performance-based commission.
- Tiered Commissions: Offer increasing commission rates as sales reps surpass quotas.
- Clear and Transparent Goals: Communicate targets, OTE (on-target earnings) and payment schedules clearly to maintain motivation.
Compensating Top Performers Without Hurting Profitability
- Caps: Set commission caps carefully, or implement accelerators rather than flat rates.
- Sustainable Income: Reward long-term deals or recurring revenue to improve retention and profitability.
- Bonuses: Offer quarterly or annual bonuses based on company-wide performance to align individual goals with business success.
Attracting Talent through Compensation and Perks
- Equity and Stock Options: Provide shares or options, especially valuable for startups or growth-stage SaaS companies.
- Flexible Benefits: Remote or hybrid working arrangements, wellness perks and generous holiday allowances help attract quality talent.
- Career Development Opportunities: Communicate growth opportunities, training and career progression paths clearly and constantly.
Compensating Top Performers Sustainably
- Define Targets: Clearly define sales targets, regularly reviewing and adjusting to maintain profitability.
- Scalable Commissions: Reward high achievers effectively by linking commissions closely to profitable growth.
