Step commission plan

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One common exmaple of a tiered commission structure is the step commission plan. This example starts with a basic revenue-based commission model. From there, this plan includes several tiers that each represent a range of total possible sales amounts. Gradually increasingly commission rates are applied to each level.

For example, a salesperson may receive a 5% commission rate for deals up to $50,000, a 7% commission rate for deals between $50,000 and $100,000, and a 10% commission rate for deals above $100,000.

This example shows a plan you might implement israel whatsapp lead if you’re trying to motivate reps to close bigger deals.

Closed Won Revenue Commission Rate Commission Earned
Deal 1 $27,000 5% $1,350
Deal 2 $68,500 7% $4,795
Deal 3 $119,400 10% $11,940
An example of a step commission plan
Example 2: Tiered commission plan based on deals closed
Another example of a tiered sales commission plan is one based on the number of deals a rep closes. This type of plan is intended to incentivize reps to keep closing deals even if they hit quota.