AI Commission Plan Generator

The split depends on the role and sales cycle. Account Executives typically have a fifty-fifty to sixty-forty base-to-variable split. SDRs lean toward sixty-forty or seventy-thirty since they have less control over final deal outcomes. Customer Success roles are usually seventy-thirty to eighty-twenty. Higher variable percentages suit roles with more direct revenue influence and shorter sales cycles. Match the split to the rep's control over outcomes.

Set quotas that seventy to eighty percent of reps can achieve at target — if fewer than sixty percent hit quota, targets are too aggressive and morale suffers. Start with a top-down revenue plan, allocate by territory potential and historical performance, then adjust for individual ramp status and account assignment quality. Quotas should feel ambitious but achievable to motivate rather than discourage your team.

Accelerators increase the commission rate once a rep exceeds their quota. For example, a rep might earn eight percent commission on deals up to quota and twelve percent on everything above it. This creates exponential earning potential that motivates top performers to keep selling after hitting target. Typical acceleration is one-point-five to two times the standard rate. Some plans have multiple tiers at one hundred twenty and one hundred fifty percent.

For most SaaS businesses, paying on bookings at the time of deal signing is preferred because it aligns the rep's motivation with closing deals quickly. Paying on collections creates lag that can demotivate reps, especially for enterprise deals with sixty to ninety day payment terms. However, clawback provisions for deals that churn within a defined period protect the company from reps closing bad-fit customers.

Offer a commission kicker for multi-year commitments — typically an additional one to two percent commission on the total contract value, or credit the rep for the full multi-year value toward quota while paying a reduced rate on years two and three. This incentivizes longer commitments without over-paying relative to annual deals. The key is making multi-year deals financially attractive for reps without being economically irrational for the company.