Threshold commission plan

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For example, a rep might earn 5% commission for the first five deals they close, 6% for the next five, 7% for deals for the next two, and 8% for any additional deals.

The example illustrated below shows how much commission a rep may earn if they were to close 12 deals out of their 15-deal quota.
An example of a tiered commission plan based on deals closed
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Example 3:
A third example of tiered commission structure is the threshold commission plan. In a threshold commission plan, the commission rate increases after a certain point. For italy whatsapp lead example, a sales rep may receive a 5% commission rate for all sales, but once they hit their quota, any additional deals will earn the rep 10% commission. This type of tiered system is often used in an effort to incentivize reps to continue working hard even after reaching their quota but reduces the complexity involved in a tiered plan based on deals closed or deal size.

In the example below, the rep has a quarterly quota of $475,000. You can see that once the rep crosses that threshold, their commission rate increases.