Apply / Commission Structures / Acceleration & Caps

Decelerator Below Threshold

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

Acceleration & Caps Advanced

How it works

Below a defined attainment threshold (often 50%), the commission rate drops - possibly to zero. Used to focus reps on hitting a minimum bar. Less common than accelerators but useful in plans where below-threshold production is unprofitable. Pair carefully: too aggressive, and bottom-quartile reps churn before they can ramp.

Formula

Commission = max(rate_below x revenue if attainment < threshold, rate_normal x revenue otherwise)

Worked example

Example. Below 60% attainment: 4% rate. Above 60%: 10% rate, with cumulative true-up. Rep at 55% attainment of $1M quota = $550K x 4% = $22K vs. $55K under the normal rate.

Pros & cons

Pros

  • Aligns rep economics with business unit economics
  • Discourages low-effort, low-output reps

Cons

  • Punishes ramping reps if not carved out
  • Demotivating if perceived as unfair
  • Can create cliff behaviors near threshold

Best for

  • High-margin sales where below-threshold work is unprofitable
  • Plans paired with aggressive quotas