Apply / Commission Structures

27 Commission Structures

Filter by category or search by name. Each structure links to a detail page with formula, example, and pros/cons.

Foundational

Straight Commission

One rate applied to every dollar of commissionable revenue.

Beginner 4 pros · 3 cons
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Foundational

Salary + Commission

A guaranteed base plus per-deal commission - the most common SaaS plan.

Beginner 3 pros · 2 cons
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Tiered Variants

Tiered (Non-Cumulative / Marginal)

Higher rate applies only to the revenue inside each tier.

Intermediate 3 pros · 2 cons
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Tiered Variants

Tiered (Cumulative / Retroactive)

When a rep crosses a tier, the higher rate is applied retroactively to all prior dollars.

Advanced 3 pros · 3 cons
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Acceleration & Caps

Accelerator Above Quota

Elevated rate kicks in once the rep crosses 100% - the standard SaaS reward for overachievement.

Intermediate 3 pros · 3 cons
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Acceleration & Caps

Decelerator Below Threshold

Reduced rate below a minimum attainment to focus reps on real production.

Advanced 2 pros · 3 cons
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Acceleration & Caps

Threshold (Cliff) Plan

No commission below a hard threshold - clears the bar or earns nothing.

Advanced 2 pros · 3 cons
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Acceleration & Caps

Capped Commission

A maximum on commissionable earnings - controversial but sometimes necessary.

Intermediate 3 pros · 3 cons
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Draws & Guarantees

Recoverable Draw

A guaranteed monthly minimum that must be earned back from future commissions.

Intermediate 3 pros · 3 cons
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Draws & Guarantees

Non-Recoverable Draw

A guaranteed minimum the rep keeps regardless of future commission performance - usually during ramp.

Beginner 3 pros · 2 cons
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Draws & Guarantees

Ramped Quota

Quota gradually increases over the rep's first 3-6 months instead of starting at full quota.

Beginner 3 pros · 2 cons
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Crediting Variants

Team Pool / Group Bonus

A bonus pool funded by team attainment and split among team members.

Intermediate 3 pros · 2 cons
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Crediting Variants

Overlay (Double Credit)

A specialist or supporting role earns commission on the same deal as the AE - the credit pool exceeds 100%.

Intermediate 3 pros · 2 cons
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Crediting Variants

Split Credit (Team Deals)

Two or more reps share credit for a single deal - typically summing to 100%.

Advanced 3 pros · 3 cons
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Crediting Variants

Manager Override

A small commission paid to managers on the production of their direct reports.

Intermediate 3 pros · 2 cons
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Bonus Layers

MBO (Management By Objectives)

A bonus tied to specific, measurable strategic goals - separate from revenue commissions.

Intermediate 3 pros · 3 cons
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Bonus Layers

SPIFF (Special Performance Incentive)

Short-term, narrowly scoped bonus to drive a specific outcome.

Beginner 3 pros · 3 cons
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Bonus Layers

Kicker

A rate bump or fixed bonus layered on top of the standard plan to drive a specific outcome.

Beginner 3 pros · 3 cons
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Renewal & Retention

Renewal Commission

Commission paid on customer renewals - typically at a lower rate than new logos.

Intermediate 3 pros · 2 cons
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Renewal & Retention

Expansion Commission

Commission paid on net-new ARR added to existing customers.

Intermediate 3 pros · 2 cons
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Specialty

Gross-Margin-Based Commission

Commission calculated on gross profit instead of revenue - protects margin from discounting.

Advanced 3 pros · 3 cons
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Renewal & Retention

Hold-and-Release

A portion of commission is held and released contingent on customer retention or cash collection.

Intermediate 3 pros · 3 cons
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Specialty

Multi-Year Deal Treatment

Special handling for contracts spanning multiple years - plan must define quota credit and commission treatment.

Advanced 3 pros · 2 cons
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Bonus Layers

Sales Contest

Time-bound competition that pays based on rank - not absolute attainment.

Beginner 3 pros · 3 cons
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Acceleration & Caps

Windfall Provision

A management override that limits commission on outsized once-in-a-career deals.

Advanced 3 pros · 3 cons
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Specialty

Behavioral Incentive

Pays on leading-indicator activities (meetings, demos) instead of closed revenue.

Intermediate 3 pros · 3 cons
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Specialty

Cash-Collected Commission

Commission earned only when cash is actually collected from the customer.

Advanced 3 pros · 3 cons
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Crediting Variants

Quota Roll-Up (Manager)

Manager earns on the aggregate attainment of all direct reports - with possible accelerators.

Advanced 3 pros · 3 cons
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