Salary Guidelines for Sales and Marketing Key Terms

Learn the basic features of attractive and competitive salaries for sales and marketing jobs

By Lea Terry, Freelance Journalist / Copywriter

If you're setting salaries for sales and marketing jobs, you need to consider both the monthly or annual salary, and also things like commission plans or incentives. Increasingly, employees are looking not just for a competitive wage, but for a compensation plan that offers significant benefits, bonuses and tools to help them prepare for their future. Before you offer anyone a salary--in fact, before you even advertise your open positions--review the most common salary guidelines for sales and marketing key terms so you can better understand what's needed to create an attractive compensation package.

Sales compensation package

This refers to the overall salary, benefits and other incentives your company offers to its sales professionals. Many of today's job seekers aren't looking for the highest monthly or yearly salary, but instead a comprehensive compensation package that offers everything from a competitive salary to perks like flex time.
Try: Learn the basics of creating a competitive compensation package through the Compensation Training & Certification Program offered by HRCertification.com. The program covers everything from the various compensation methods, including sales compensation, to how to develop salary ranges and levels.

Commission

A commission arrangement is especially common in sales jobs, where some employees may be paid only a percentage of the sales they make. At other companies, employees earn a commission in addition to their base salary.
Try: Check out the "Elements of Sales Compensation" seminar, which is designed for people new to sales compensation, offered by World at Work. At 80/20 Sales Performance, learn how to develop an effective sales compensation plan.

Benefits and incentives

The benefits you offer are just as important as the monetary offer you make to a potential employee. You'll need to decide whether to include extras like a cafeteria plan, group health insurance and 401(k) plans, for example.
Try: Download the manuals offered by the Employee Benefits Institute of America. These manuals cover everything from COBRA to fringe benefits such as adoption assistance, education assistance and paid time off.

Regional average

The average salary in your city or state is a crucial influence on what salary you need to offer to be competitive. In geographic areas where the cost-of-living is lower than yours, companies can offer less and still attract top talent. But if your company is a major city, living expenses are probably much higher, and so the salary you offer needs to be, too.
Try: At MarketingHire, find the average marketing salaries for your city or state. The site also features cost of living studies, news on marketing hiring trends, and explanations in some of the factors that go into hiring marketing staff. Mercer offers its "Sales Salaries Around the World" report.

Federal wage law

Employers have a lot of freedom in determining what salaries they'll offer, but some things are mandated by federal law.
Try: To stay current on federal wage law and its impact on what kind of salary, compensation and incentives you should offer, visit the U.S. Department of Labor website. The site covers everything from commission to overtime pay to the impact of an employee's educational level on pay.

Exempt and non-exempt

In general, there are two classifications of employees based on salary: exempt and non-exempt, and because these groups are subject to different federal laws and pay standards, it's important to understand the difference.
Try: HRHero offers an explanation of each classification and how they differ.