Sales Commission: Variable pay tied to sales performance

Sales commission is the variable portion of a salesperson's compensation, paid as a percentage of closed revenue, typically structured with accelerators above quota.

What is Sales Commission?

Commission plans typically pay a base rate to 100% of quota and an accelerated rate (often 1.5–2x) above quota. Strong plans pay caps only on exceptional ranges or not at all.

Frequently Asked Questions

How is sales commission calculated?: Commission rate × closed revenue, often with accelerators above quota. Plans vary by segment — SDRs typically earn per-meeting or per-SQL; AEs earn per-deal.