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Salesperson Job Description: 6 Free Templates

Free salesperson job description templates: general, inside, outside, retail, B2B, and car sales. Commission, OTE, and FLSA guidance. Download as DOCX.

Nick Anisimov

Nick Anisimov

FirstHR Founder

Hiring
17 min

Salesperson Job Description Templates

6 free templates: general, inside, outside, retail, B2B, and car sales. Download as DOCX or copy-paste.

The salesperson job description is one of the highest-stakes postings a small business writes, because for most growing companies the salesperson is the hire that brings in the revenue. Yet the templates online treat it as generic, ignoring the two things that decide whether a sales posting works: a concrete compensation structure with base, commission, and on-target earnings, and the right overtime classification, which differs sharply between inside, outside, and retail sales. None of the template farms address either, or the small business writing its first sales hire without an HR department.

At FirstHR, we build for small teams that hire without an HR department, and this page covers the role the way businesses actually staff it: six templates, general, inside, outside, retail, B2B, and car sales, with the commission structure and FLSA classification built in. Each names the sales type and writes duties to match. Fill in the brackets and post. For the principles behind any posting, the guide to writing a job description covers the fundamentals.

TL;DR
Six free, ready-to-use salesperson job description templates: General, Inside Sales, Outside Sales, Retail, B2B / Account Executive, and Car / Auto Sales. Download all six as one DOCX, pick your sales type, and post. Two things make or break a sales posting: a concrete compensation structure (base, commission, OTE) and the right FLSA classification, which differs between inside (non-exempt), outside (often exempt), and retail (non-exempt) sales. Use the gender-neutral title salesperson, not salesman.

What Does a Salesperson Do?

A salesperson finds, wins, and keeps customers, owning the process from first contact through the close and follow-up: prospecting, presenting, closing, building relationships, and keeping the pipeline current. The Bureau of Labor Statistics tracks sales occupations as one of the largest groups in the country, with sales and related workers numbering close to 13.4 million as of May 2024, and the O*NET profile details the task range for retail and related sales roles.

The specifics vary sharply by type: an inside salesperson sells by phone and email, an outside salesperson sells in the field, a retail salesperson sells on a store floor, a B2B account executive runs a full sales cycle, and a car salesperson sells on a dealership floor. Those differences drive the duties, the pay structure, and the overtime classification, which is why the six templates on this page split by sales type.

Salesman vs Salesperson: Which Term Should You Use?

Use salesperson. It is the standard, gender-neutral term and the right choice for a job posting, while salesman is the older term that is steadily falling out of use. Salesperson and sales representative have largely replaced salesman because they are inclusive and widen the candidate pool, and a gender-neutral title also keeps the posting aligned with equal-opportunity advertising expectations.

Many people still search for salesman out of habit, which is why this page covers the term, but the posting itself should say salesperson, sales representative, or sales rep. Keeping job advertisements neutral is also good practice under the EEOC rules on job advertisements, which discourage expressing preferences tied to protected characteristics. The templates on this page use the neutral title throughout.

Salesperson Duties and Responsibilities

Salesperson duties and responsibilities span four areas: prospecting and lead generation, selling and closing, relationships and accounts, and pipeline and reporting. The sales type shifts the emphasis, but the four hold across inside, outside, retail, and B2B roles. These are the responsibilities grouped the way the templates use them.

Prospecting and lead generation
Prospect and generate leads through outreach and referrals
Qualify leads and build a pipeline
Handle inbound inquiries and follow up
Selling and closing
Present and demonstrate products or services
Negotiate and close sales
Meet or exceed targets and quota
Relationships and accounts
Build and maintain customer relationships
Grow and retain accounts after the close
Coordinate with operations and support to deliver
Pipeline and reporting
Keep the CRM updated with activity and pipeline
Forecast and report on performance
Track activity against targets

A strong posting selects the duties that match the sales type rather than listing every possible task, and names the CRM and the targets. For a structured way to scope any role before posting, the guide to defining job responsibilities walks through the process.

Which Template Should You Use?

Pick the template by sales type; the core selling duties are shared, but each type adds its own work, pay structure, and classification, so the matched version reads more credibly to the candidates who do that kind of sales. Use this guide to choose.

General Salesperson
The universal baseline
The standard version: prospecting, presenting, closing, and follow-up, with a base-plus-commission structure and the FLSA classification handled.
Inside Sales Rep
Phone, email, and CRM
The inside version: selling by phone, email, and video from the office or remotely, written as non-exempt and hourly, the default for inside sales.
Outside Sales Rep
Territory and field
The field version: territory management, in-person demos, and travel, with the outside-sales exemption note and an expense or car allowance.
Retail Salesperson
Store floor and POS
The retail version: floor sales, the register, merchandising, and evening or weekend shifts, written as non-exempt and hourly.
B2B / Account Executive
Full-cycle business sales
The B2B version: pipeline, discovery, negotiation, and quota-carrying contract sales, with a base-plus-variable OTE structure.
Car / Auto Salesperson
Dealership showroom
The dealership version: showroom and lot sales, test drives, the finance handoff, and a commission-heavy structure for a different SERP.
Match the Template to Your Sales Type
A general sales role points to General; phone-and-email selling from the office points to Inside Sales (non-exempt); territory and field selling points to Outside Sales (often exempt); a store floor points to Retail (non-exempt); full-cycle quota-carrying business sales points to B2B / Account Executive; and a dealership points to Car / Auto Sales, a commission-heavy role with its own distinct hiring market.

6 Free Salesperson Job Description Templates

Download all six as a single Word document or copy individual templates. Each follows the same structure: company context, job summary, responsibilities, qualifications, a compensation structure, FLSA status, and how to apply. Fill in the brackets before you post.

Download All 6 Job Description Templates
General, inside, outside, retail, B2B, and car salesperson. All in one DOCX.

Template 1: General Salesperson

The universal version: prospecting, presenting, closing, and follow-up, with a base-plus-commission structure and the FLSA classification handled.

General Salesperson Job Description
SALESPERSON JOB DESCRIPTION
Company: __ (____ employees)
Location: __
Reports to: [Owner / Sales Manager]
Employment type: Full-time
FLSA classification: [ ] Non-exempt (hourly, overtime-eligible)
[ ] Exempt [confirm with the duties test; see notes below]
Compensation: $____ base + commission [structure below]

ABOUT [COMPANY NAME]

[One or two sentences about your business, what you sell, and
who you sell to.]

JOB SUMMARY

[Company Name] is hiring a Salesperson to find, win, and
keep customers: prospecting, presenting, closing, and
following up. You will own the sales process from first
contact through close, hit agreed targets, and keep the CRM
current. This role drives revenue for a growing business.

KEY RESPONSIBILITIES

Prospect and generate leads through [calls / outreach /
referrals]
Present and demonstrate products or services to customers
Close sales and meet or exceed targets / quota
Build and maintain customer relationships and follow-up
Keep the CRM updated with activity and pipeline
Coordinate with [operations / support] to deliver

REQUIRED QUALIFICATIONS

[High school diploma; degree a plus]
____ + years in sales or a customer-facing role
[or willingness to learn]
Strong communication, persuasion, and follow-through
Comfortable with targets and a CRM
[Industry or product experience: a plus]

COMPENSATION STRUCTURE

Base salary: $____________ per year
Commission: ____% of [revenue / margin] OR $____ per sale
On-target earnings (OTE): $____________
[Quota: $____ per month/quarter]
[Expense reimbursement / car allowance, if applicable]
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.

Template 2: Inside Sales Representative

The inside version: selling by phone, email, and video from the office or remotely, written as non-exempt and hourly, the default for inside sales.

Inside Sales Representative Job Description
INSIDE SALES REPRESENTATIVE JOB DESCRIPTION
Company: __
Location: __ [ ] On-site [ ] Remote
Reports to: [Sales Manager]
Employment type: Full-time
FLSA classification: Non-exempt (hourly, overtime-eligible)
[inside sales is generally non-exempt; see notes below]
Compensation: $____ per hour + commission

JOB SUMMARY

[Company Name] is hiring an Inside Sales Representative to
sell by phone, email, and video from our office or remotely:
qualifying leads, running demos, and closing deals without
in-person field visits. You work the pipeline through the
CRM and hit activity and revenue targets.

KEY RESPONSIBILITIES

Make outbound calls and handle inbound inquiries
Qualify leads and book or run product demos
Move opportunities through the pipeline to close
Maintain accurate CRM records and activity logs
Meet call, demo, and revenue targets
Hand off or coordinate with [field sales / support]

REQUIRED QUALIFICATIONS

[High school diploma; degree a plus]
____ + years in inside sales, telesales, or support
Strong phone and written communication
Comfortable with CRM and a high activity volume
Goal-oriented and resilient

COMPENSATION STRUCTURE

Hourly rate: $____ per hour (overtime-eligible)
Commission: ____% or $____ per closed deal
On-target earnings (OTE): $____________
[Activity and revenue targets]
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
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Template 3: Outside Sales Representative

The field version: territory management, in-person demos, and travel, with the outside-sales exemption note and an expense or car allowance.

Outside Sales Representative Job Description
OUTSIDE SALES REPRESENTATIVE JOB DESCRIPTION
Company: __
Location / Territory: __
Reports to: [Sales Manager]
Employment type: Full-time
FLSA classification: [ ] Exempt (outside sales exemption,
if criteria met) [confirm; see notes below]
Compensation: $____ base + commission

JOB SUMMARY

[Company Name] is hiring an Outside Sales Representative to
sell in the field: visiting customers, running in-person
demos, and building relationships across an assigned
territory. You spend most of your time away from the office,
developing accounts and closing deals on the ground.

KEY RESPONSIBILITIES

Develop and manage an assigned sales territory
Visit prospects and customers in person; run demos
Build long-term relationships and grow accounts
Close deals and meet territory targets
Maintain CRM records from the field
Travel within [territory / region] as required

REQUIRED QUALIFICATIONS

[High school diploma; degree a plus]
____ + years in outside / field sales
Self-directed and strong at relationship-building
Valid driver's license and reliable transportation
Willing to travel [__%] within the territory

COMPENSATION STRUCTURE

Base salary: $____________ per year
Commission: ____% of [revenue / margin]
On-target earnings (OTE): $____________
Expense reimbursement / car allowance: _______________
[Territory and quota]
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.

Template 4: Retail Salesperson

The retail version: floor sales, the register, merchandising, and evening or weekend shifts, written as non-exempt and hourly.

Retail Salesperson Job Description
RETAIL SALESPERSON JOB DESCRIPTION
Store / Company: __
Location: __
Reports to: [Store Manager / Owner]
Employment type: [ ] Full-time [ ] Part-time
FLSA classification: Non-exempt (hourly, overtime-eligible)
Pay: $____ per hour [+ commission / spiffs, if applicable]

JOB SUMMARY

[Store Name] is hiring a Retail Salesperson to greet and
help customers on the sales floor, drive store sales, run
the register, and keep the floor stocked and presentable.
You are the face of the store and create a great customer
experience while hitting sales goals.

KEY RESPONSIBILITIES

Greet customers and provide product guidance
Drive sales and meet store / individual goals
Operate the POS / register and handle transactions
Restock, merchandise, and maintain the sales floor
Handle returns, exchanges, and customer questions
Work [evenings, weekends, holidays] as scheduled

REQUIRED QUALIFICATIONS

[High school diploma a plus; not always required]
[Retail or customer-service experience: a plus]
Friendly, helpful, and reliable
Comfortable on your feet and with a POS system
Available for [evening / weekend] shifts

COMPENSATION

Hourly rate: $____ per hour (overtime-eligible)
[Commission / spiffs, if offered]
[Employee discount and benefits]
To apply, send your resume to __ or
apply in store.
[Store Name] is an equal opportunity employer.

Template 5: B2B / Account Executive

The B2B version: pipeline, discovery, negotiation, and quota-carrying contract sales, with a base-plus-variable OTE structure.

B2B / Account Executive Salesperson Job Description
B2B SALES / ACCOUNT EXECUTIVE JOB DESCRIPTION
Company: __
Location: __ [ ] Hybrid [ ] Remote
Reports to: [Sales Manager / Founder]
Employment type: Full-time
FLSA classification: [confirm with the duties test]
Compensation: $____ base + variable [OTE below]

JOB SUMMARY

[Company Name] is hiring a B2B Salesperson / Account
Executive to own a full sales cycle with business customers:
building pipeline, running discovery and demos, negotiating,
and closing contracts. You carry a quota, manage your
pipeline, and grow accounts after the close.

KEY RESPONSIBILITIES

Build and manage a pipeline of qualified opportunities
Run discovery, demos, and proposals for business buyers
Negotiate and close contracts; hit quota
Manage and grow assigned or won accounts
Forecast accurately and maintain the CRM
Partner with [marketing / product / success]

REQUIRED QUALIFICATIONS

[Bachelor's degree a plus]
____ + years in B2B sales or account management
Track record of hitting quota
Strong discovery, negotiation, and closing skills
CRM and pipeline-management discipline

COMPENSATION STRUCTURE

Base salary: $____________ per year
Variable / commission: ____% or quota-based plan
On-target earnings (OTE): $____________
[Accelerators above quota]
[Quota: $____ annual / quarterly]
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.

Template 6: Car / Auto Salesperson

The dealership version: showroom and lot sales, test drives, the finance handoff, and a commission-heavy structure for a different hiring market.

Car / Auto Salesperson Job Description
CAR / AUTO SALESPERSON JOB DESCRIPTION
Dealership: __
Location: __
Reports to: [Sales Manager / General Manager]
Employment type: Full-time
FLSA classification: [confirm; dealership sales has specific
FLSA rules]
Compensation: [commission / draw + commission; structure
below]

JOB SUMMARY

[Dealership Name] is hiring a Car Salesperson to sell
vehicles on our showroom floor and lot: greeting customers,
understanding their needs, conducting test drives, presenting
options, and closing sales. You guide buyers from first visit
through the handoff to finance.

KEY RESPONSIBILITIES

Greet showroom and lot customers and qualify needs
Present vehicles and conduct test drives
Negotiate pricing and close sales
Hand off to finance and insurance (F&I) for paperwork
Follow up with leads and past customers
Maintain the CRM / DMS and meet unit targets

REQUIRED QUALIFICATIONS

[High school diploma a plus]
[Sales experience: a plus; many dealerships train]
Valid driver's license and clean driving record
Personable, motivated, and goal-driven
Available for [evening / weekend] dealership hours

COMPENSATION STRUCTURE

[Commission per unit / percentage of gross]
[Draw against commission, if offered]
[Bonuses / spiffs for volume]
On-target earnings (OTE): $____________
To apply, send your resume to __ or
apply at the dealership.
[Dealership Name] is an equal opportunity employer.
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Inside vs Outside Sales

The inside-versus-outside distinction shapes the role and, critically, the overtime classification, so it is worth settling before you post. Here is how the two compare.

Inside SalesOutside Sales
WhereOffice or remote, by phone and emailIn the field, in person
TravelLittle or noneSignificant, manages a territory
PaceHigh volume of leadsFewer, larger relationships
FLSAGenerally non-exempt (overtime)Often exempt (outside sales)
PayHourly base plus commissionSalary base plus commission

The classification difference is the one that catches small businesses out: inside sales is generally non-exempt and owed overtime, while outside sales has its own exemption when the rep primarily sells away from the office. Settle which model the role is before writing the posting, because it changes both the pay structure and the legal classification.

Compensation: Base, Commission, and OTE

The compensation section is the most important part of a sales posting, because strong salespeople evaluate openings by the earning structure first. Make it concrete: define the base, the commission, the on-target earnings, and the quota.

ElementWhat it isWhy it matters
Base salaryFixed pay regardless of salesStability; higher base attracts steadier reps
CommissionVariable pay per sale or revenueUpside; drives performance
OTEBase plus expected commission at quotaThe number salespeople actually compare
QuotaThe target that defines performanceSets clear expectations
DrawAdvance recovered from commissionEarly stability with upside

For a small business making its first sales hire, decide the model deliberately: a higher base with lower commission attracts steadier candidates, a lower base with aggressive commission attracts hungry closers. Whatever you choose, state the actual numbers and a realistic OTE, since a specific, credible compensation plan is the single strongest thing a small employer can put in a sales posting. The offer letter template covers putting the commission structure in writing at the offer.

Exempt or Non-Exempt? Classifying Your Salesperson

Sales is one of the trickiest areas of overtime classification, and the type of sales decides the answer, not the title. Getting it wrong is a common and costly mistake for a small business without an HR department.

Classification by Sales Type
Outside sales has its own FLSA exemption: a rep whose primary duty is making sales and who is customarily and regularly engaged away from the employer's place of business is exempt from minimum wage and overtime, and the salary-level test does not apply (DOL Fact Sheet 17F). Inside sales is generally non-exempt and owed overtime, with a narrow exception under Section 7(i) for certain commissioned retail or service employees (DOL Fact Sheet 20). Retail sales is almost always non-exempt.

The practical rule: default inside sales and retail to non-exempt and hourly, evaluate outside sales against the away-from-office test, and run the duties analysis before the offer. The exempt vs non-exempt guide walks through the classification in detail, and SHRM job description guidance covers structuring the posting itself.

Salesperson Salary

Salesperson pay varies enormously by type, industry, and how much is commission, so anchor on the type of sales and lead with on-target earnings rather than base alone.

Sales Pay Benchmarks (BLS, May 2024)
Federal data puts the median annual wage for the sales occupations group at $37,460, but it blends very different roles. Retail salespersons had a median of about $16.62 an hour; wholesale and manufacturing sales reps (non-technical) a median around $66,780; and technical and scientific sales reps around $100,070. Sales and related workers number close to 13.4 million, about 8.7 percent of US employment (U.S. Bureau of Labor Statistics).

Because so much sales pay is variable, the most useful number for a posting is the on-target earnings, the base plus expected commission at quota, not base alone. Anchor on the relevant federal figure for the sales type, set a base and a realistic commission plan, and publish the OTE, since salespeople compare openings by total earning potential and skip postings that hide the structure.

Hiring Your First Salesperson

For a small business, the first salesperson is frequently the hire that determines whether the company grows, since this is the person who brings in revenue. That makes the posting and the hire worth real attention: the compensation structure, the classification, and the gender-neutral title all shape who applies and how well it works. Here is how to approach it.

Get the compensation structure right in the posting, because base, commission, OTE, and quota are what salespeople read first
A salesperson posting lives or dies on the compensation section, because strong salespeople evaluate openings by the earning structure before anything else, and a vague compensation line signals an employer who has not thought it through. The posting should make the structure concrete: the base salary, the commission rate or per-sale amount and what it is paid on, the on-target earnings or OTE that a performing rep can expect, and the quota or targets that define performance. For a small business making its first sales hire, this is also a moment to decide the model deliberately: a higher base with lower commission attracts steadier candidates, a lower base with aggressive commission attracts hungry closers, and a commission-only structure is legal in many cases but narrows the pool and carries minimum-wage considerations for non-exempt roles. Whatever you choose, write it clearly with the actual numbers and a realistic OTE, because a credible, specific compensation plan is the single strongest thing a small employer can put in a sales posting, and the templates on this page build the structure in as fields rather than leaving it as an afterthought.
Classify the role correctly under the FLSA, because inside sales, outside sales, and retail are treated very differently
Sales roles are one of the trickiest areas of overtime classification, and the type of sales decides the answer, not the title. Outside sales has its own FLSA exemption: an employee whose primary duty is making sales and who is customarily and regularly engaged away from the employer's place of business is exempt from minimum wage and overtime, and notably the salary-level requirement does not apply to the outside sales exemption. Inside sales is the opposite: an inside salesperson working from the office or remotely is generally non-exempt and entitled to overtime, with a narrow exception under Section 7(i) for certain commissioned employees of a retail or service establishment who meet specific pay tests. Retail salespeople are almost always non-exempt and hourly. The practical guidance is to classify by the actual duties: default inside sales and retail to non-exempt, evaluate outside sales against the away-from-office test, and run the analysis before the offer. This is exactly the compliance question that generic sales templates skip and a small business without an HR department most often gets wrong, which is why the templates here flag the classification on each variation.
Use the gender-neutral title and treat the sales hire as the front door to your revenue, since this is often a small business's most consequential early hire
Two practical points round out a strong sales posting. First, language: salesperson and sales representative have largely replaced salesman as the standard, gender-neutral titles, and using the neutral term widens the candidate pool and keeps the posting compliant with equal-opportunity advertising expectations, even though many people still search for salesman out of habit. Use salesperson or sales rep in the posting itself. Second, weight: for a small business, the first salesperson is frequently the hire that determines whether the company grows, since this is the person who will bring in revenue, so the hire and the onboarding deserve real attention. A salesperson onboarded well, with a clear compensation plan signed, the product and pitch learned, the CRM set up, and a 30-60-90 ramp, starts producing far sooner than one handed a login and a phone. For a company without an HR department, putting that structure in place around the offer, the commission agreement, and the first ninety days is what turns a risky bet into a productive hire.

After You Hire: Onboarding a Salesperson

Onboarding a salesperson is both paperwork and a ramp to productivity. The paperwork track comes first, and because sales pay is variable and a frequent source of disputes, it matters more here than for most roles: the offer in writing with the full compensation structure stated, a commission or sales-compensation agreement signed before the start date, the I-9, tax forms, and state reporting. Then the ramp: confirm the classification and compensation, set up CRM access, teach the product and the pitch, define the territory or lead source, and lay out a 30-60-90 day plan with ramping targets so the rep knows what good looks like in the first three months. A salesperson onboarded well starts producing far sooner than one handed a login and left to figure it out.

The documents around the hire follow the usual sequence: the offer letter template for the terms and commission structure, the employment contract template for the agreement, and the 30-60-90 day plan template for the sales ramp. The adjacent sales roles use the same structure when you staff them: the sales representative and sales associate templates. FirstHR connects the paper and onboarding layer, e-signature for the offer and the commission agreement, document management for signed compensation plans and records, training assignments with completion records for product and sales training, an HRIS and org chart, and the onboarding checklist with a 30-60-90 ramp, in one place built for teams without an HR department.

Key Takeaways
The compensation structure makes or breaks a sales posting: define the base, commission, on-target earnings (OTE), and quota concretely, because strong salespeople read the earning structure first.
Classify by sales type, not title: inside sales and retail are generally non-exempt and owed overtime, while outside sales has its own FLSA exemption when the rep sells away from the office.
Name the sales type: inside, outside, retail, B2B, and car sales differ in duties, pay structure, and classification, and a generic posting attracts a mismatched pool.
Use the gender-neutral title salesperson or sales rep, not salesman, to widen the pool and keep the advertisement inclusive, even though many still search for salesman.
Lead pay with on-target earnings, not base: sales pay is largely variable, with retail around $16.62/hour and technical sales reps around $100,070 median (BLS, May 2024).
Get the commission agreement in writing and signed before the start date, since variable sales pay is a frequent source of disputes, and onboard with a 30-60-90 ramp.

Frequently Asked Questions

What does a salesperson do?

A salesperson finds, wins, and keeps customers, owning the sales process from first contact through the close and follow-up. The core work falls into four areas: prospecting and lead generation, finding and qualifying potential customers; selling and closing, presenting products or services, negotiating, and meeting targets; relationships and accounts, building customer relationships and growing accounts after the sale; and pipeline and reporting, keeping the CRM current and tracking performance against quota. The specifics vary by type. An inside salesperson sells by phone, email, and video from the office. An outside salesperson sells in the field across a territory. A retail salesperson sells on a store floor. A B2B salesperson or account executive runs a full sales cycle with business buyers. A car salesperson sells vehicles on a dealership floor. Sales is one of the largest occupational groups in the country, with sales and related workers numbering close to 13.4 million as of May 2024, about 8.7 percent of US employment, so a strong job description names the specific sales type and selects the duties that match.

Is it salesman or salesperson?

Salesperson is the standard, gender-neutral term and the better choice for a job posting, while salesman is the older term that is gradually falling out of use. Salesperson and sales representative have largely replaced salesman as the preferred titles, because they are inclusive and widen the candidate pool, and using a gender-neutral title also keeps the posting aligned with equal-opportunity advertising expectations. Many people still search for salesman out of habit, which is why this page covers the term, but the posting itself should use salesperson, sales representative, or sales rep. The same applies to other roles: salesperson over salesman, server over waitress, and so on. The shift is not just about compliance; a gender-neutral title signals a modern, inclusive workplace, which matters to candidates. So when you write the actual job description, use salesperson or sales representative even if you arrived here searching for salesman, and the templates on this page are written that way.

What is the difference between inside and outside sales?

Inside and outside sales differ in where and how the selling happens, and the distinction matters for both the role and the overtime classification. Inside sales is conducted remotely, by phone, email, and video, from the office or a home office: the inside salesperson works a high volume of leads through the CRM without traveling to customers. Outside sales is conducted in the field: the outside salesperson travels to meet prospects and customers in person, manages a territory, and builds relationships face to face. Beyond the work itself, the classification differs sharply. Outside sales has its own FLSA exemption, so an outside salesperson who primarily makes sales away from the employer's place of business is generally exempt from overtime, and the salary-level test does not even apply. Inside sales is generally non-exempt and entitled to overtime, with only a narrow exception for certain commissioned retail or service employees. For a small business, the practical implication is to classify an inside sales role as non-exempt by default and evaluate an outside role against the away-from-office test before deciding.

How should I structure a salesperson's compensation?

Sales compensation usually combines a base salary with a commission or variable component, and the right mix depends on the role and what you want to attract. The common structures are: base plus commission, the most common, offering stability plus upside; commission-only, which is legal in many situations but narrows the candidate pool and carries minimum-wage considerations for non-exempt roles; and a draw against commission, where the salesperson receives an advance recovered from future commissions. The key elements to define in the posting are the base salary, the commission rate or per-sale amount and what it is calculated on, the on-target earnings or OTE that a performing rep can realistically expect, and the quota or targets. A higher base with lower commission tends to attract steadier candidates, while a lower base with aggressive commission attracts aggressive closers. For a small business, the most important thing is to be concrete and realistic: a specific, credible compensation plan with a real OTE is the single strongest element of a sales posting, since strong salespeople evaluate the earning structure first.

Is a salesperson exempt or non-exempt from overtime?

It depends entirely on the type of sales, and the title does not decide it. Outside sales has a dedicated FLSA exemption: an employee whose primary duty is making sales and who is customarily and regularly engaged away from the employer's place of business is exempt from both minimum wage and overtime, and uniquely, the salary-level requirement does not apply to this exemption. Inside sales is generally non-exempt, meaning the inside salesperson is entitled to overtime for hours over forty in a week, with a narrow exception under Section 7(i) of the FLSA for certain commissioned employees of a retail or service establishment whose pay is more than one and a half times the minimum wage and more than half of whose earnings come from commissions. Retail salespeople are almost always non-exempt and hourly. The practical rule for a small business is to default inside sales and retail to non-exempt, evaluate outside sales against the away-from-office test, and run the duties analysis using the Department of Labor's guidance before classifying the role and making the offer, since misclassification can require back overtime pay.

How much does a salesperson make?

It varies enormously by type of sales, industry, and how much of the pay is commission. Federal data puts the median annual wage for the sales occupations group at $37,460 as of May 2024, but that blends very different roles. Retail salespersons had a median of about $16.62 an hour in May 2024. Wholesale and manufacturing sales representatives, excluding technical and scientific products, had a median around $66,780, while those selling technical and scientific products had a median around $100,070. B2B and account-executive roles with strong commission structures can earn well into six figures at target. Because so much sales pay is variable, the most useful number for a posting is the on-target earnings, the base plus expected commission at quota, rather than base alone. For a small business, anchor on the relevant federal figure for the type of sales, set a base and a realistic commission plan, and publish the on-target earnings, since salespeople compare openings by total earning potential and skip postings that hide the compensation structure.

Can I hire a salesperson on commission only?

In many cases yes, but it carries conditions and trade-offs a small business should understand. Commission-only arrangements are legal in many situations, but they interact with overtime and minimum-wage law: for a non-exempt salesperson, such as most inside and retail sales roles, the employer must still ensure the person's pay works out to at least the minimum wage for all hours worked and that overtime obligations are met, which a pure commission structure can complicate. Outside salespeople, who are exempt from minimum wage and overtime under the outside sales exemption, can more straightforwardly be paid commission-only. Beyond legality, commission-only narrows the candidate pool significantly, since many strong salespeople want at least some base for stability, so it can make a role harder to fill. A common middle path is a modest base plus commission, or a draw against commission that gives early stability while keeping the upside. If you do go commission-only, state it clearly in the posting, confirm the classification, and make sure the structure meets wage-and-hour requirements for the role type.

What happens after I hire a salesperson?

The standard paperwork comes first: the offer in writing with the compensation structure, base, commission, and OTE, clearly stated, plus a commission or sales-compensation agreement, the I-9 with documents verified, the W-4 and state tax forms, and state new hire reporting. Because sales pay is variable and a frequent source of disputes, getting the commission plan in writing and signed before the start date is especially important. Then onboarding, which for a salesperson is also a ramp to productivity: confirm the classification and compensation, set up CRM access, teach the product and the pitch, define the territory or lead source, and lay out a 30-60-90 day plan with ramping targets so the rep knows what good looks like in the first three months. A salesperson onboarded well starts producing far sooner than one handed a login and left to figure it out. FirstHR handles the paper and onboarding layer for small businesses: e-signature for the offer and the commission agreement, document management for signed compensation plans and records, training assignments with completion records for product and sales training, an HRIS and org chart, and the onboarding checklist with a 30-60-90 ramp, in one place built for teams without an HR department.

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