Apply / Commission Structures / Acceleration & Caps
Threshold (Cliff) Plan
No commission below a hard threshold - clears the bar or earns nothing.
Acceleration & Caps
Advanced
How it works
A binary attainment gate: until the rep crosses the threshold (often 60-80% of quota), they earn no variable. Once crossed, all booked revenue commissions begin to accrue. Works in mature, high-attainment teams; demotivating in early-stage or ramping teams. Use sparingly.
Formula
If attainment < threshold: commission = 0. If attainment >= threshold: standard plan applies.
Worked example
Example. 60% threshold cliff. A rep at 59% earns $0 variable; a rep at 60% earns the full base rate x $600K.
Pros & cons
Pros
- Aligns variable spend with productive sales
- Forces minimum performance bar
Cons
- Severe motivation drop for at-risk reps
- Causes pull-in behavior near threshold
- Often disputed in court (CA, MA) if not clearly documented
Best for
- Mature, high-attainment teams only
- Plans with strong ramping protections separately