Apply / Commission Structures / Foundational
Straight Commission
One rate applied to every dollar of commissionable revenue.
Foundational
Beginner
How it works
The simplest possible plan: commission = rate x revenue. The rate stays constant from dollar one to whatever the rep produces. Used in transactional, high-velocity sales motions where simplicity beats sophistication. Often paired with a high pay-mix (60/40 or 70/30) since there is no salary cushion or escalating reward to hit.
Formula
Commission = rate x commissionable revenue
Worked example
Example. A real-estate rep earns 3% straight commission. On $1.2M of closed listings in a quarter, they earn $36,000.
Pros & cons
Pros
- Easy to explain in a single sentence
- Predictable per-dollar economics
- Fast onboarding for new reps
- Minimal data requirements
Cons
- No mechanism to reward overachievement
- Hard to align with strategic priorities (margin, mix)
- Top performers may feel underpaid vs. tiered peers
Best for
- Transactional sales (real estate, auto, retail)
- Independent reps and agents
- Early-stage startups testing PMF