Base Salary

• NASCAR drivers are paid a certain base salary either per race or per year, which is dictated by their sponsoring team. A driver must perform well enough in races to attract the attention of sponsors so that his car, his team and his salary are paid. NASCAR drivers can even earn a six- or seven-figure salary. For example, NASCAR driver Mike Wallace made an estimated $700,000 in salary for his races in 2009. Salary requirements for each driver are negotiated and written into contracts that can last a few years.
  
  

Race Purses and Extras

• Every race on the NASCAR circuit has a race "purse" of which a driver can win a part. The race purse is generated by ticket sales and sponsors for the race event. If a NASCAR driver wins a race, he does not receive the entire purse. Instead, the purse is dispersed according to finishing position among the drivers. For example, first place might win 50 percent of the race purse and last place 0 percent of the purse. A driver may also have a stipulation in his contract that gives him money for leading the most laps in a race, taking the pole position or finishing in the top five.
  
  

Endorsements

• NASCAR drivers depend on endorsements to supplement their income throughout their race career. Companies pay NASCAR drivers for television commercials, web advertising and print media appearances over a contractually specified period of time. For example, Jeff Gordon endorses Pepsi and DuPont products on and off the track, both of which led him to make $16 million in 2009. Companies build brands around their drivers and continue the partnership until the driver can no longer perform adequately in races.
  
  

Merchandising and Licensing

• A contract for a NASCAR driver usually stipulates what percentage of merchandising and licensing sales he is allowed to keep at the end of the day. Merchandise can include hats, t-shirts, mugs, stickers, clothing and anything else that uses the driver's likeness or race car. A successful driver can make millions of dollars per year based upon the merchandise that fans by at the track or in national outlets.