Apply / Commission Structures / Crediting Variants
Manager Override
A small commission paid to managers on the production of their direct reports.
Crediting Variants
Intermediate
How it works
A manager earns an override commission (e.g., 1-3%) on the aggregate revenue produced by their direct reports. The reps still earn their full commission - the override is additive. Aligns manager incentives with team revenue and is the typical mechanism for compensating player-coach roles.
Formula
Manager_override = override_rate x Σ(team_revenue)
Worked example
Example. A regional manager with 6 AEs producing $20M aggregate ARR. 1% override = $200K to the manager. Each AE earns their own commission separately.
Pros & cons
Pros
- Aligns manager and team incentives
- Simple compensation mechanism for managers
- Predictable variable cost
Cons
- Manager may compete with their reps if also closing
- Discourages downsizing of underperforming team members
Best for
- Sales managers and regional directors
- Player-coach roles
- Channel managers earning on partner-sourced revenue