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How Much Does It Cost to Hire a Sales Rep

When it comes to hiring a sales representative, the cost can vary widely depending on a number of factors. From salary and benefits to training and onboarding, there are numerous expenses to consider. In this article, we will explore the different costs associated with hiring a sales rep and provide some tips for keeping those costs under control.

The Cost of Salary and Benefits

One of the biggest expenses associated with hiring a sales rep is their salary and benefits. According to the Bureau of Labor Statistics, the median pay for sales representatives in 2020 was $29.71 per hour, or $61,660 per year. However, this can vary significantly by industry, location, and level of experience. On top of their salary, you will also need to consider the cost of providing benefits such as health insurance, retirement contributions, and paid time off.

Training and Onboarding

Another major cost associated with hiring a sales rep is the training and onboarding process. According to a study by the Sales Management Association, the average cost of training a new sales rep is $32,000. This includes the cost of materials, travel, and the salary of the trainer. It is important to invest in a comprehensive onboarding process to ensure that your sales rep is fully equipped to succeed in their role.

Recruitment Costs

Before you even hire a sales rep, there are costs associated with finding and attracting potential candidates. This can include posting job ads, attending job fairs, and working with recruitment agencies. According to Glassdoor, the average cost to hire a new employee is $4,000, but this can be significantly higher for sales positions due to the competitive nature of the industry.

Technology and Tools

In today’s digital age, sales reps rely heavily on technology and tools to do their jobs effectively. This can include customer relationship management (CRM) software, lead generation tools, and sales enablement platforms. The cost of these tools can add up quickly, but they are essential for helping your sales reps close deals and drive revenue.

Keeping Costs Under Control

While the costs of hiring a sales rep can add up, there are strategies you can use to keep these expenses under control. One option is to consider hiring remote sales reps, which can significantly reduce overhead costs such as office space and utilities. Additionally, investing in ongoing training and development can help to reduce turnover and the associated costs of hiring and onboarding new sales reps.

Another option is to consider outsourcing some aspects of your sales process, such as lead generation or appointment setting, to a third-party provider. This can be a cost-effective way to access specialized expertise without the need to hire additional full-time employees.


Hiring a sales rep can be a significant investment, but it is one that can pay off handsomely if done right. By carefully considering the various costs associated with hiring a sales rep and implementing strategies to keep those costs under control, you can set your new hire up for success while also ensuring that your bottom line remains healthy. Whether you’re a small start-up or a large enterprise, understanding the costs involved in hiring a sales rep is essential for making informed decisions and achieving long-term success.