In the 21st century, the sales landscape has grown increasingly complex due to the shifts in behavioral, technological, and managerial practices. The performance of sales teams has been a long-standing topic of interest for both academics and marketing professionals. Understanding the factors that boost the performance of sales force is a key aspect of sales management and can greatly influence a company's success and survival. This study aims to explore the effect of digital marketing competencies on the sales performance of small and medium-sized enterprises (SMEs) in Ilam city. The research is applied in nature and utilizes a descriptive-correlational approach, with data gathered through surveys. The study's population consists of the sales forces of active SMEs in Ilam city. Given the small size of the population, a census sampling method was employed. After data collection, 132 valid questionnaires were used to be analyzed. The research instrument was a standardized questionnaire, with content validity confirmed by subject matter experts and reliability established through Cronbach’s alpha test. Data analysis was conducted using LISREL software. The findings indicated that digital marketing competencies have a significant and positive influence on the sales performance of SMEs in Ilam city. Moreover, technical-specialized, human-behavioral, and analytical competencies were also found to positively impact the performance of sales force. The results of this study suggest that digital marketing skills are critical for improving the performance of sales force. By providing sales teams with the necessary digital marketing tools and strategies, companies can enhance customer engagement and drive sales. Integrating digital marketing into sales operations can lead to better customer interaction, increased lead generation, and improved conversion rates. Sales professionals with digital marketing expertise are better equipped to navigate the evolving digital marketing landscape and meet the changing demands of modern consumers.