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How to Become a Sales Manager

how to become a sales manager

Becoming a sales manager is a common goal for high-performing sales representatives. It’s not just about hitting sales targets – it also requires leadership, strategic thinking, and the ability to coach a team. In this in-depth look at the sales manager career path, learn what the role entails, the skills you need, the job market demand (especially in tech and SaaS), typical salaries in different countries, and practical ways to progress from an early-career sales professional to a sales manager.

What is a Sales Manager?

A sales manager is responsible for leading and supervising a team of salespeople to achieve organizational revenue targets. In practice, sales managers plan and direct the delivery of products or services to customers, set sales goals, analyze performance data, and develop training programs for their sales representatives​. They often develop the company’s sales strategy, oversee day-to-day sales operations, and ensure the team meets its sales quotas​. This can include hiring and mentoring sales reps, devising incentive plans, coordinating with marketing on lead generation, and adjusting tactics based on market trends. In short, a sales manager acts as the bridge between upper management’s revenue objectives and the sales team’s execution on the ground, keeping the team motivated and on track to hit targets.

Sales Manager Skills

To succeed as a sales manager, you’ll need a blend of soft skills, leadership ability, and technical know-how. Here are some of the key skills and qualities a great sales manager should have:

  • Leadership and Coaching: The ability to inspire, motivate, and guide a sales team. Sales managers must often set strategies to meet sales goals and know how to mentor and develop their reps. Showing leadership – even before you have the title – is crucial (e.g. by mentoring new sales hires, which demonstrates you can lead without formal authority​).
  • Communication Skills: Excellent communication is essential for managing a sales team and liaising with clients. This includes clearly conveying ideas and feedback and active listening. Sales managers need to communicate with a wide range of people and build rapport with both customers and colleagues​.
  • Analytical and Data-Driven: A good sales manager is comfortable with numbers and analysis. You’ll be interpreting sales reports, tracking KPIs, and forecasting trends. Analytical skills are needed to evaluate sales data, market trends, and team performance, then make informed decisions​.
  • Customer Focus: Even in a managerial role, staying attuned to customer needs is important. Sales managers must ensure customer satisfaction and respond to client needs or issues that arise to help close deals​. This customer-oriented mindset also helps in training reps to provide excellent service.
  • Organizational Skills: Juggling many responsibilities requires strong organization and time management. Sales managers organize sales territories, schedules, and training programs, and keep track of their team’s activities and results​. Being organized helps maintain order and ensures nothing falls through the cracks – from following up on leads to evaluating each rep’s progress.
  • Technical Savvy: Modern sales teams rely on technology like Customer Relationship Management (CRM) software, analytics tools, and other sales enablement platforms. A sales manager should be able to use these tools effectively​. Familiarity with sales software and the ability to understand metrics dashboards will make you far more efficient in coaching your team and identifying opportunities for improvement.

In addition to the above, successful sales managers are often resilient, adaptable, and good at problem-solving. They know how to handle pressure and maintain team morale when sales cycles get tough. A combination of people skills and strategic skills is what enables a sales manager to drive results through their team.

Sales Manager Employer Demand

The demand for effective sales managers remains strong across many industries. Virtually every company that has a salesforce needs someone to lead it. In the United States, employment of sales managers is projected to grow about 6% from 2023 to 2033, which is faster than the average for all occupations. This growth reflects the ongoing need for businesses to generate revenue and expand their customer base. Sales managers are employed in a wide range of sectors – from wholesale and retail trade to finance, manufacturing, and technology – wherever there are sales teams to oversee. In fact, common industries for sales managers include wholesale trade (which employs about 20% of them), retail (17%), professional and technical services (14%), manufacturing (11%), and finance/insurance (10%)​.

Notably, high-growth sectors like technology and SaaS (Software as a Service) have a particularly strong demand for talented sales managers. Tech companies often compete to hire experienced sales leaders because a great sales manager can significantly boost revenue. These sectors also tend to offer higher compensation to attract top talent. For example, a sales manager leading a team selling SaaS products might earn total compensation well into six figures – one scenario cites earnings of $200,000 or more in a SaaS sales manager role, roughly double what a retail sales manager might make. Major tech hubs and large metropolitan areas also drive demand; companies in cities like San Francisco, New York, or London frequently have multiple openings for sales management positions and pay premiums for experience in competitive markets.

With so many opportunities out there, aspiring sales managers should know where to look for openings. In addition to general job boards, it’s wise to use specialist job sites that focus on sales roles in lucrative industries. For instance, The SaaS Jobs is a job board specializing in SaaS and tech sales positions. Niche boards like this can be a goldmine for finding high-paying sales manager jobs in the tech sector, as they cater specifically to companies seeking sales leadership talent in those fields. By keeping an eye on the market and networking within your industry, you can gauge employer demand and identify the right time and place to make your move into a sales manager position.

Sales Manager Salary

Sales managers are typically well compensated for their expertise and the responsibility they carry. Salaries can vary widely based on factors like location, industry, the size of the team, and an individual’s performance (since many sales managers receive bonuses or commissions tied to team results). Below is an overview of average annual salary ranges for sales managers in a few countries:

CountryAverage Salary Range (Annual)
United States (USD)$63,700 – $239,200
United Kingdom (GBP)£22,000 – £70,000
Canada (CAD)C$50,000 – C$100,000
Australia (AUD)A$85,000 – A$145,000

Sources: U.S. Bureau of Labor Statistics (10th–90th percentile)​; National Careers Service (UK)​; Talent.com (Canada)​; Jora/SEEK (Australia)​.

These ranges give a sense of the annual base salary from entry level up to very experienced sales managers. For instance, in the United States, entry-level sales managers (or those in smaller markets) might start around the $60k level, whereas the most experienced or high-performing 10% can earn well above $200k​. In the UK, a newly promoted sales manager might earn in the £20k–£30k range, while a seasoned sales manager in a lucrative industry can reach £70k or more. Canada’s salaries for sales managers tend to fall between C$50k and C$100k from junior to senior levels, and in Australia the typical advertised range is around A$85k to A$145k with an average around A$115k​.

It’s important to note that many sales managers receive compensation beyond just base salary. Commission structures and performance bonuses are common – meaning if your team exceeds its targets, your total earnings (OTE, or On-Target Earnings) could be substantially higher than the base pay. According to the U.S. Bureau of Labor Statistics, companies often pay sales managers a combination of salary plus commissions or bonuses, to reward hitting sales goals}. Thus, a superstar sales manager in a high-paying sector (like enterprise software sales) might earn far above the listed range when commissions are included. Geography and cost of living also play a role: a sales manager in San Francisco or London will generally command a higher salary than one in a smaller city. For example, a sales manager in San Francisco could earn up to ~$200,000 annually (including bonuses), while a peer in a lower-cost city like Atlanta might see around $120,000. Keep in mind these figures are just guidelines – individual salaries will vary. The good news is that moving into a management role almost always comes with a pay increase compared to an individual-contributor sales role, reflecting the greater responsibilities and impact of the position.

Ways to Become a Sales Manager

So, how can you climb the ladder from an early-career sales professional to a sales manager? There’s no single formula, but there are proven steps you can take to position yourself for a promotion into sales management. If you’re an ambitious sales rep aiming for that next level, consider the following approaches:

  1. Build a Strong Foundation in Sales (Education & Early Experience): Most sales managers start out as salespeople, so excelling in an entry-level sales role is the first step. You’ll want to learn the ropes of selling, understand your product and customers, and consistently meet or exceed your sales targets. Formal education can help here – many companies prefer their sales managers to hold at least a bachelor’s degree​. Common relevant degrees include business, marketing, or communications, which provide knowledge of business operations and marketing principles​. (In fact, about 63% of sales managers have a bachelor’s degree​.) If you don’t have a degree, don’t be discouraged; success in sales and alternative credentials can make up for it. Early in your career, focus on developing a track record as a reliable, high-performing sales rep. That proven experience is essential, as most sales manager positions require “several years” of sales experience before you qualify​.
  2. Excel in Your Current Sales Role: Treat your current sales job as the proving ground for management. Hitting your numbers is necessary but not sufficient – aim to exceed your sales quota and demonstrate that you can maintain strong performance over time. This will build your reputation within the company. Strive to be in the top percentage of reps if possible, and take initiative in improving results. For example, analyze your own sales metrics to find ways to boost your close rate or average deal size. Improving your sales performance not only benefits your company; it also shows your higher-ups that you’re ready for greater responsibility (Indeed lists “improve sales performance” as a key step toward becoming a sales manager​). Additionally, make yourself well-rounded: learn about adjacent functions like marketing or customer success, and become the go-to person for product knowledge. The better you understand what makes a great salesperson, the more prepared you’ll be to lead a sales team in the future.
  3. Develop Leadership and Team Skills: Moving into management means shifting from solely focusing on your own sales to enabling the whole team to succeed. Demonstrate leadership skills wherever you can. One way is to volunteer for tasks like mentoring new hires or helping train colleagues on skills you’ve mastered. Stepping up to coach peers shows that you can lead even without a formal title – which management will notice. As one hiring expert put it, “stepping up to the plate to mentor and coach peers or train new hires is a huge factor” in proving you have leadership potential​. You can also seek small leadership opportunities such as heading a sales project, organizing a team training session, or taking charge during sales meetings when your manager is unavailable. These experiences help you practice managing people and demonstrate that you’re management material. Also, work on teamwork and interpersonal skills: a good sales manager knows how to be a team player and collaborate, not just compete. Show that you can put team success first and support your fellow reps – this attitude is what your future role will require on a daily basis.
  4. Pursue Professional Development (Courses & Certifications): While hands-on experience is paramount, supplementing it with professional development can give you an edge. There are many sales management training programs and certifications that can bolster your credibility. For example, you might pursue a certification like the Certified Professional Sales Leader (CPSL) offered by NASP, which is a course focused on sales leadership skills​. Other credentials include the Certified Sales Manager (CSM) from the Institute of Professional Managers, or the Certified Sales Leader (CSL) certification, among others. Even free online courses (such as HubSpot Academy’s Sales Management training) or workshops can help you pick up valuable techniques in coaching, analytics, and strategy. Though not always required, completing such programs shows initiative and commitment to the career path. Additionally, stay informed about best practices by reading sales leadership books or attending industry webinars. The knowledge you gain will not only boost your resume but also prepare you to handle the challenges of the role more effectively once you land it.
  5. Seek Opportunities for Promotion (and Be Proactive in Your Career): When you feel ready for a sales manager role, you should actively seek out the opportunity. There are two paths: moving up internally or applying externally. Many companies prefer to promote top-performing reps to manager roles, so make it known to your sales director that you’re interested in management when the time is right. Have a conversation about what it would take to earn a promotion, and ask for increased responsibilities to prove yourself. At the same time, keep an eye on job postings. Update your resume to highlight leadership experiences and sales achievements (e.g. “Managed project that increased team sales by 15%” or specific revenue metrics you contributed​). Leverage your professional network on sites like LinkedIn and let mentors or colleagues know you’re looking for growth. When searching, consider specialized job boards in addition to general ones – for instance, as mentioned earlier, a niche board like The SaaS Jobs can connect you with high-paying sales manager openings in tech companies. During interviews for manager roles, be ready to discuss your vision for leading a team and examples of times you’ve influenced others or took initiative. And if an internal promotion isn’t coming, don’t be afraid to look externally; companies are always on the lookout for proven sellers who can step up as leaders. By being proactive and strategic in your job search (and perhaps securing references or endorsements from other managers to back you up​), you’ll increase your chances of landing that first sales manager position.

Every salesperson’s journey to management will look a little different. Some might join a company that offers a direct “Management Trainee” program for new grads, while others work their way up over several years on the job. In fact, there are multiple pathways – for example, one can become a sales manager through a university degree, a sales apprenticeship, direct promotion from within a company, or training with a professional body​. Whichever path you choose, the transition from individual contributor to sales manager is a significant step that requires preparation. By focusing on the steps above – gaining experience, showcasing leadership, continuing to learn, and actively seeking opportunities – you’ll put yourself in the best possible position to become a sales manager.

In summary, becoming a sales manager is a journey that combines experience, skill development, and initiative. It’s a challenging role, but also a rewarding one that offers the chance to have a larger impact on your organization and enjoy a higher earning potential. With dedication and the right strategy, that next promotion could be well within your reach. Good luck on your path to sales leadership!